Primark does agree that it could be sharing more information on its sustainable and ethical practices with the public, even if consumers are not always asking for it. Credit: Zoella. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. The 20-minute video features numerous items from Primarks Spring/Summer 2017 collection including boyfriend style jeans, striped cropped tops and lacy triangle bras - all in several colours and sizes. Its a bit brutal, considering we do have a lot of future goals, but thats how it is. Acting as an agent and intermediary between banks and customers, Geosansar and Primark have aided workers in opening a bank account for the first time. Primark Current business strategies Primark is the most growing retail company in UK. Brands could also work together on other labour rights issues, such as supporting labour unions, setting up worker committees, setting realistic workloads and working hoursPrimark should be more transparent in their sustainability efforts. The steps Primark is taking to improve garment workers wages. I dont care really, I love this jacket.. 1: Inventory and capacity buffers Buffer capacity is the most straightforward way to enhance resilience, whether in the form of underutilized production facilities or inventory in excess of safety stock requirements. For example, in India, Primark is working together with local partners like the Association for Stimulating Know How 11 (ASK) in one of its main suppliers, Jeyavishnu Mill, to improve its recruitment process. Primark is experiencing "limited availability" on some of its product lines due to supply chain disruption, the retailer's owner has said. In a factory setting, where the management team usually male dominated, female workers can be pressured to work overtime without pay to reach production targets, or denied the right to maternity or sick leave. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit. But there is still a lot to do in this regard., One of the reasons Primark does not intend to publicly share the names of all their suppliers is precisely because of their competitive edge. Why Primark's sustainable cotton push is good for female farmers. Twelve factories have already benefited from the programme to date, and an additional seven are currently benefitting from the PaCT training through Primarks nominations. Credit: ABF plc. What certainly has helped over the last two years is there has been more of an appetite to collaborate, says Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. For example, the fashion retailer has committed to improving the durability of its clothes from 2025; they must be able to be washed at least 30 times without wear and tear. On their website, under Our Ethics, 8 Primark claims that all factories are inspected and audited. Primark tries to cut down all unessential expenses, reduce wastage, less direct marketing option, so that it can maintain the cost of the product. Taking into consideration fast-fashions current business model, which is focused on high volume, low price and disposable products, this cannot by definition nor intention, go hand in hand with sustainability, she adds. Regarding Primark's China sourcing strategy, on the one hand, Primark sources from as many as 475 suppliers located in China, far more than any other Asian country. This set of guiding principles is based on the internationally recognised labour standards from the International Labour Organization (ILO) Conventions 3 and the ETIs Base Code. What we see on the social side, is that everyone has very similar Codes of Conduct, but various degrees of implementation - which makes it harder for everyone.. Managing risk and governance by ensuring policies, processes and . We pay for all our audits ourselves as well, adds Stewart. Sustainable Brands Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. Primarks sustainable cotton pilot has been applauded by numerous international organisations as it focused on the environmental impact of growing cotton, such as the farmers use of water, chemicals and their effects on soil and aimed to improve cotton production by using less water, less chemicals and less pesticides. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. As these results show, the company is doing well. In order for Primark, or any fast fashion brand, to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs. These complaints from the UK have come even after Primark implemented the national living wage 4, which aims to ensure its workers are paid enough to live off of. At the same time Primark decided to exclusively work with female cotton farmers in Gujarat, Northern India during the pilot because they realised many other cotton initiatives lacked gender focus. Its a ripple effect and quite incredible to see, because they may have a neighbour who grows cumin and now are able to share knowledge on which chemical or natural pesticides are best to use. Soaring wages failing to stop supply chain staff 'quitting in droves' . With such rapid growth, the retailer's technology needs have changed considerably over time and having the . It currently uses the Cost leadership. Photo: Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. The value fashion retailers parent company, Associated British Foods, acknowledges it faces pressure to set itself fixed goals in terms of responsible and sustainable production, but stresses transparency is key to making a real difference. Primark is not the first fashion high street retailer to initiate an in-store recycling scheme with I:CO, but one key difference between the Primark clothing recycling pilot and other fashion retailers textile recycling programmes is the customer incentive. In these regions a lot of the knowledge concerning the best practices for growing cotton, as well as the most environmental friendly tactics available to do so, tends to be rather limited. Case study on Primark sustainability, ethics, supply chain. What steps Primark has taken to become more responsible following Rana Plaza. I know people will often say that the quality isnt very good at Primark, but we have invested a lot in quality over the last few years, says Stewart. But the Spanish view it as a major chain store. Thanks to its energy-efficiency projects, Primarks store energy intensity, which is measured by kilowatt-hour (kWh) per square foot, has been reduced by 11 percent since 2015. New Coalition Hailing Blockchain as Linchpin of Successful Climate Action, Global Citizen, Authentic Team Up to Rally Consumers to Help #EndExtremePovertyNOW, Rise in Balance Sheet Activism Swells CNotes Community Investment Platform to $300M, Addressing Fashions Footprint at Farm Level Through Verified Sustainability Data, Most Businesses Dont Understand Scope 3 Emissions Heres Why. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. Credit: I:CO spirit, Photo: Industrial textile factory - Lucian Coman | Dreamstime.com Poco_bw | Dreamstime.com, Photo: Primark store in Madrid. Historically we have always shared still photographs of the factories we work with, but we thought it would be good to bring it to life in another way. Publicly showing their wage calculations would be a good start., One brand cannot single handedly raise wages for the workers who make their clothes, Other NGOs agree that the key to implementing fair, livable wages within the industrys supply chain lies within collaboration. Some factories need help improving certain areas, so we make sure we work together with them by explaining the implications and solutions on the audit checklist. Primark also runs an online supplier management system which offers training programmes on how suppliers can improve their working standards. Four factors usually influence an organisation's supply chain strategy for the supply chain models they use: Industry. Pursue a living wage for workers in its supply chain. Because if you give someone an education, it stays with them and thats sustainable. She stressed that the cotton project focuses on giving farmers a hand up, not a hand down in the form of free seeds, or pesticides or equipment. Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. For years Primark has been fighting against the stigma that cheap fashion is not sustainable or ethical, even though the value fashion retailer shares 98 percent of its suppliers and factories with other high street retailers, such as H&M, Zara and Mango. Fair Wear Foundation 12 has done interesting research revealing the possibilities. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. We have to find a way of explaining to the customer not to make that assumption, as price is not an indication of good or bad ethics. "Primark is often (mis)judged to have poor supply chain ethics, due to its GBP4 price point, and has come under scrutiny from investors, consumers and . The product strategy and mix in Primark marketing strategy can be explained as follows: Primark is one of the leading retailer brands having multi-brand products available. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. Develop and maintain relationships with all Primark suppliers, internal Primark teams and external traceability partners to support the Traceability strategy; Support the traceability team to train, onboard and support suppliers to comply with Primark traceability requirements "Our continued partnership with Primark as part of this industry-leading programme is materially changing the lives of farmers and their families in rural cotton communities," Ward concluded. Consistently providing a wide variety of goods at low prices . Primark regularly visits factories where it holds a lead role in respect to the Accord and is in frequent contact with all other factories which it supplies from. After reaching out to the shoppers who found these letters and labels and conducting its own research, Primark claimed the distress calls were all part of an elaborate hoax looking to sully its name. In the States we set up a similar model with an organisation called KIDS Fashion Delivers 9. All of Primarks stores in the US have been donating their excess stock to the non-profit organisation since 2015, which goes to those in need in 50 states throughout America. May 4, 2022 Primark is one of the first brands that come to mind in fast fashion. The results are truly shocking. Primark is part of the Better Work programme and a full member of ETI - all positive initiatives which can contribute to better labour conditions. That is why we have begun to explore how we can better measure what we do so that we might provide more credible and tangible evidence of our impact.. So it is important to remember that these flagship stores attract huge amounts of people and we shouldnt get side tracked as to what is looks like across the board., As long as we stimulate seeing clothing as a disposable product instead of an investment, the race to the bottom will continue, Stewart adds Primark has also been investing in creating better quality clothing to help combat the stigma that its offers throw-away clothing and ensure their products last longer. Historically when we did not say anything, people believed that we were not being sustainable at all, when we were just trying to find our comfort level in communicating this, explains Stewart. Primark previously signed the Responsible Sourcing Networks Cotton Pledge 6, and in doing so committed to not knowingly source any cotton from Uzbekistan 7 - one of the worlds largest exporters of cotton - for the manufacturing of its products. Credit: Primark. Next to its textile and garment recycling initiative, Primark has been working with two organisations to efficiently manage its textile waste while helping those in need. To solve it we need more time and a concerted effort on behalf of us all, to buy a little less and demand a whole lot better for our garment workers., A closer look at Primarks stance on responsible fashion. But what could Primark film to convey its good ethics in simple and clear way? This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. For example, Cambodia was the first country in which the ACT initiative began its first process to develop an industry-wide collective bargaining for higher wages. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. The move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. To be included on the map, factories must have produced products for Primark for at least a year and be an established supplier. The new depot will serve as Primark's distribution centre for the Northeast, where the company plans to open eight retail stores by the end of 2016. The training focuses on denim and jersey production, paying attention to the environmental impact of the main technologies used during the dyeing and washing processes. Our Environmental Policy, which sits within our Code of Conduct. However, although fast-fashion retailers like Primark have been working hard to improve working conditions and dramatically decrease their impact on the environment, in reality they have been unable to match their sales gains with corresponding improvements in terms of the social and environmental aspects. There are some new collaborations now coming through which could have a real impactful change. As Primark has made sure its five pillars of corporate responsibility have become an integrated part of the company, its Sustainable Cotton Programme has become a prime example of how such an initiative can positively impact both workers livelihoods, as well as the retailers cotton products - even if they do not directly own any farms. Considering that the majority of Primarks products are made from cotton, we would suggest the brand dramatically increase its initiatives in this area by supporting similar programmes to achieve 100 percent sustainably grown cotton. In fact, the results of the cotton pilot programme were so successful they exceeded all Primark's expectations, which is why the value retailer has expanded the programme to support an additional 10,000 farmers in Gujarat over the next six years. It can help with this initial scoping phase of strategy development. It is a virtual tour. Its one of our challenges we have to deal with. But very often union members are threatened or fired for the work they do. Primark currently counts 16 stores across the country, including its flagship store in Amsterdam. In France, employees also complained of difficult working conditions in Primark, with complaints ranging from unpaid sick leave, to constant monitoring, to unexplainable gaps between sales assistants' wages 5. Primark notes it is constantly reviewing its routes, type of vehicles used and shared services to ensure it minimise miles and the resultant emissions as the company expands. Strong union representation can bring labour violations to light. Our members have to share that in yearly public reports, and we assess their performance, which is also published. A survey conducted by the Business Continuity Institute showed that of the 526 responders across 64 countries, 34% of organizations reported an increased annual cost of 1 million or above, caused by supply chain disruptions. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . But I find it more difficult to share what we are doing sustainably because we do not make capsule collections and cant just hang a little label on it. When asked on Primarks current opinion on adopting a circular business model, Stewart acknowledges that it is an area the value retailer is exploring, but is not ready to take on as a future goal. Where possible we encourage our members and all other garment brands- to increase leverage. Its still early days, but its going very wellthe whole process is a journey of understanding. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How Unlike fast-fashion competitors, such as H&M, who has been extremely open in communicating their sustainable initiatives to the public through campaigns such as Close the Loop, Primark has remained relatively quiet on what it does in terms of sustainability, ethics, and labour rights. But the inspection reports are not made public, so it is impossible to verify if these inspections are really taking place; what is monitored; what problems are found and what corrective actions come out of these audits., Being honest about the issues and problems and the steps brands are taking to improve labour conditions, is key, adds Schuurman. For example, one initiative started by Primark together with Health Enables Returns 3 (HERHealth) and Business for Social Responsibility (BSR) in China, India, Bangladesh and Myanmar aims to educate female garment workers on their health needs and support them in learning. Primark's new sustainability strategy includes nine concrete pledges. As a 100% brick-and-mortar operation with nearly 400 stores across 13 countries, Primark felt these challenges across its retail footprint and inventory supply chains and learned new strategies along the way. Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. Credit: Primark. Building a solid, long-term relationship with their suppliers based on trust; paying their supplier a fair price for their products; ensuring labour unions are allowed within the factories they source from and are protected enough so they can do their work freely without being harassed are all key to tackling forced labour in the supply chain, says Scally. Credit: Primark. However, this boost in income also brought on a new set of concerns for the female cotton farmers who participate in the pilot, as they were not used to managing a large cash flow. The clothing must also be recyclable. It occupies 80 offices in 21 countries. At the moment Primark has a team of over 80 experts dedicated to sustainability, ethical fashion and worker training as part of their Ethical Trade Team. 95% of our manufacturers are based in Italy. On its website, the value retailer has a dedicated area under its Ethics page which explains how they are able to offer the lowest prices on the high street. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . Get some inspiration for your paper by reading our sample! TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. Published 5 years ago. The push-pull supply chain strategy in turn helps to reduce their order-to-delivery lead time to stores, reduce inventory holding level and minimize both physical costs and market mediation. Now headquartered in Massachusetts, USA, it has a global revenue of 7bn. There were a number of brands before who did not want to collaborate. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . This is why Primark is developing the communication around everything in terms of ethical and sustainable programmes, to make sure it is as informative and visual as possible for its readers. But is Primark doing enough? As we launch the Primark Sustainability and Ethics Progress Report, we reflect on a foundational year, which was focused on developing the internal processes and programmes that will underpin the changes needed within Primark and across our value chain to deliver on our Primark Cares strategy. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. In doing these things well we know we contribute to making millions of people's lives better," says George Weston, Chief Executive Officer of Associated British Foods, parent company of Primark in ABF 2016 Corporate Responsibility Update. 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