All senior members of staff have been trained to make sure safety culture and employee well being are embedded into role descriptions and that workers follow a thorough training programme before being allowed to work the shop floor. It can also be used to drive down operational cost and maximize efficiency within your supply chain. We would suggest Primark increase its use of sustainable fibres, including developing further sustainable cotton programmes and using recycled fibres, along with tencel and modal instead of the less sustainable viscose fibre, says FitzGerald. This technology is still in development for the process to work at scale, but there is exciting potential here for a large reduction in garments being sent to landfill, and the decreased use of virgin raw materials. She encourages Primark to start looking into future options for implementing a circular economy, similar to the goal set by rival fast-fashion retailer H&M. A tight grip on the supply chain is essential in the process. Brands like Primark should use their power to make sure union members are protected. Scally also encourages Primark to join a multi-stakeholder initiative, like FWF, who can verify what is really happening in the supply chain. The steps Primark is taking to improve garment workers wages. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. In order for Primark to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs, Although Primark has been transparent with its energy efficiency and waste management, it is clear the value retailer still has some ways to go to ensuring both its supply chain and vast store network become more sustainable. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. What is Primark doing to offer affordable fashion at an amazing price? 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. Unlike some fashion retailers, Primark does not publicly share its audit reports, which raises numerous questions on what exactly Primark is doing to ensure the rights of its garment workers are protected. Credit: Pixabay, Video: An introduction to Love Your Clothes. At Primark, we're proud of our low prices. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. Publishing more information on its website, training its members of staff and creating behind the scenes videos of the factories it works with, are just a handful of avenues Primark has taken on share what it does in terms of sustainability and social responsibility. Primark was among the first retailers to sign the Accord on Fire and Building Safety in Bangladesh, initiated by the IndustriALL and UNI Global Union. Halve carbon emissions across its value chain. Sustainability is a complex issue, stresses Jacinta FitzGerald, Head of Research at Project JUST 3. Our engagement with . Primark maintains it is able to keep its prices so low because all of its orders are placed in bulk and not because its does not pay its workers enough. As Primark does not directly own any of the factories or suppliers it works with, an overall lack of transparency concerning their audit reports can make it hard to ensure their core working principles are constantly being maintained. Will a Sustainable Future for Agriculture Take Us Underwater? The company was forced to do a u-turn after a public outcry and stated that it would create a fund to supply garment workers. Primark was one of the first companies to cancel millions of pounds worth of orders from suppliers during the coronavirus pandemic, putting workers in its supply chains at risk of redundancy. Discount fashion chain Primark has said it could face disruption from global supply chain issues into 2023, but it assured customers that "we are getting the goods we need". Primark established a strong strategy of cost leader ship. When watching the video via a smartphone, the direction of the video will shift depending on the position of the phone - in order to view the full 360 degrees in the video, please physically rotate your smartphone around. I think the one thing I would say is that it depends where you live. It can help with this initial scoping phase of strategy development. But is Primark doing enough? In united states, Southewest Airline has same strategy with success in aviation sector. 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. "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 . [Giving a voucher] just seems a little counter-intuitive in my opinion., Primarks partnership with I:CO is a good example of how collaboration can bring around positive change in terms of sustainability. 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. It is mainly sourced from countries like China, India, Pakistan, Turkey, Brazil or the United States. In England, Primark is seen as a discounter. The sourcing map features information about Primarks suppliers factories in 31 countries, including the names, addresses, number of workers and gender split of the workforce at each. Fair Wear Foundation 12 has done interesting research revealing the possibilities. There were a number of brands before who did not want to collaborate. Company value proposition. So what is Primark doing to reassure its consumers that its products should be cherished and that people should not buy more than they need? Four factors usually influence an organisation's supply chain strategy for the supply chain models they use: Industry. In total 6,279 workers in 436 groups have been trained through the programme since 2009, which has impacted the lives of approximately 30,000 garment workers. Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. 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. The company's strategy of focusing on six core supply chain principles resulted in performance benefits that really paid off: customer service improved from 97 to 99 per cent, direct customer shipments increased by ten per cent and productivity increased by 30 per cent. Our Primark Cares strategy is enabled by and underpinned by five key principles: Our commitment to ethics and human rights through our Code of Conduct and Supply Chain Human Rights Policy. Photo: Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. We'll assume you're ok with this, but you can opt-out if you wish. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. The value retailer pledged to give both short and long-term financial compensation to those affected by the factory collapse and has paid a total of 14 million dollars to date - 11 million of which has gone to workers and families employed by its supplier, New Waves Bottom. A key part of the programme focuses on sharing lessons Primark and DFID learnt following the Rana Plaza incident, including the retailers initiatives with local partners to provide both long-term and short-term aid. Photo factory via Pexels. Nevertheless, Primark cannot argue with the fact that many consumers do shop excessively at Primark and are more likely to make an unnecessary, or unneeded purchase if the price is low enough. In addition Primark has joined a number of partnerships to ensure its products are made as sustainably and responsibly as possible, with as little harm to the environment. I think that this is something we made a decision on very early on and it gives us the confidence that the audit paints a clear picture of what is going on in that factory at that point in time.. In addition, Primark failed to score very high in the first Corporate Human Rights Benchmark 12, the first public ranking of corporate human rights performance. Its suppliers factories. Primark products are made with respect for people and for the planet. 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. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. In addition, the fashion retailer received the worst score on the Ethical Consumer 5 rating, an independent public consumer rating, for its cotton supply chain. Supply Chain of Primark The idea of supply chain management, has been an important factor in the industry especially on the firms that are engaged in the international market and is an ideal way to appropriately deliver the customer's needs in the most desirable way. We wanted to develop a deeper understanding concerning the manufacturing processes behind cotton. The programme was originally designed to introduce sustainable farming methods, improve cotton yields and increase the cotton farmers income. Credit: Love Your Clothes, Video: I:CO | RETHINK. At Primark, we are committed more than ever, to . Following the tragic collapse of Rana Plaza, the most deadly accident in the history of the garment industry, more and more people begun to question how a t-shirt costing as little as 2 pounds could ever be responsibly made. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. Since the surveys results were published 3 Primark has met with FNV and agreed to make a number of changes to improve working conditions for staff, including respecting employee privacy, improved procedures for holiday leave, and the establishment of a workers council. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . We deliver. Hover your mouse over the photos to learn more. Garment brands should use their power to make sure union members are protected., Primark does what it can do to help workers employed without the proper legal papers, but in the case of undisclosed sub-contracting, where approved suppliers outsource production to unapproved factories which use methods of forced labour, the value retailer takes decisive action, as it takes any breaches extremely seriously. Over the years Primark has ensured that they work with local organisations in all of its sourcing locations in order to create a support net for any employment challenges that may occur, according to Stewart. The firm's positioning strategy entails the firm as the most cost effective firm in the fashion retail sector in UK. Milan, Italy Primark store photo. The programme helps raise awareness on a wide range of topics, such as the importance of children's education, financial planning, general health and workers rights through the formation of worker education groups. But now, we are all sharing factories and therefore human rights has to be a prerequisite for us, as it should be for all., Although some may argue that not a lot seems to have changed within the fashion industry concerning the lives and rights garment workers since Rana Plaza, Steward disagrees. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. "By working closely with Primark and their . In addition, Primark launched a wellbeing programme in its head office in Dublin in July 2015, which currently offers 20 classes a week in its own exercise studio. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. In addition Primarks European stores donated a total of 100,000 cartons apparel goods to the European Red Cross Refugee Appeal 10 in 2015 to help refugees and migrants. But just how reliable is Primarks Code of Conduct? 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. Some may think the Rana Plaza factory collapse 2013 was a turning point for the fashion industry - a wake up call for the retailers producing their garments there to band together to make a change for good. Primark is committed to reducing the impact of our operations on the environment and has implemented a number of sustainability initiatives across the business, including environmental health and safety audits, energy audits, central building management system to optimize energy consumption, LED lighting, extensive employee training, extended producer responsibility measures and waste recycling programmes, explains Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. It operates stores in the UK, Republic of Ireland, Spain, Portugal, Germany, the Netherlands, Belgium, Austria, France, Italy and the US, directly employing 68,000 people. This wasnt a case of us not having the data, we know where our products are made. Cotton is a natural fiber that is grown in warm climates. Primarks Code is much in line with Fair Wear Foundation Code of Labour Practices, points out Lotte Schuurman, Communications Officer at the Fair Wear Foundation 5 (FWF). The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the company's supply chain. Which is why Primark decided to partner with agriculture experts, CottonConnect 1, and the Self-Employed Womens Association to launch the Sustainable Cotton pilot Programme in 2013. Design clothes with strengthened durability and to be recycled. Strong union representation can bring labour violations to light. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. At the moment 57 percent of all Primarks GHG emissions result from the transporting of its goods and as Primark continues to grow, this percentage is only likely to increase. Plus, our third-party logistics providers. Even before the Rana Plaza factory collapse, one of Primarks main points of focus looked to improve safety standards and worker wellbeing for all its employees around the world. Of course it can be seen as if the greatest offenders are now establishing themselves as the greatest investors in sustainability and ethics, but the truth is that the fast fashion model is far from being effective and considerate, continues de Castro. This plan ensures that every phase of the supply chain is optimised through supply chain excellence, including the sourcing of materials, manufacturing, delivery, and logistics management. This is of vital importance in countries such as India, Bangladesh and Pakistan where women make up 80 percent of the workforce. But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. We try to be proactive and helpful partners when it comes to audits, points out Stewart. Last week, on January 17 2019, Primark announced its Q1 results to January 5. The places of production are shared - they are the same working conditions, the same wages - lets just level the plane and get rid of this assumption that paying more for an item somehow makes it more ethical. 1: Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping. Primark adds that it does acknowledge the inherent challenges in defining and calculating a living wage, but it believes that a negotiated approach remains the most practical and sustainable move and supports the development of all industrial strides taken to achieve this. "You are constantly hounded and monitored by managers and supervisors to work faster/better. The value retailer states it is targeting efforts in certain countries where national safety standards differ from its own standards, but does not outline in detail which countries it is focusing on at the moment. As a business we care about the impact. Credit: Primark. (Black Well). FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. 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. How transparent is Primarks supply chain? For me, its really all about education. 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. 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. Photo: Primark Gent opening Belgium via AFP. But this also means consumers are more tempted to buy something without trying it and will be less inclined to return an ill-fitting garment, as it could cost them more in travel costs going back to the store than the actual garment itself. At the moment Primark does not purchase any raw cotton directly from farmers, as it does not directly own any mills or factories. A supply chain strategy is the overarching plan that an organization uses to manage the flow of goods and services, from sourcing raw materials to delivering products to customers. Get some inspiration for your paper by reading our sample! The value retailer has had a similar system in place in the UK for a number of years now, which ensures all recyclables are collected from its stores via its delivery trucks and transported back to the central distribution centre. However Primark does not tackle its factory audits alone. Credit: FashionUnited. We do get many queries concerning our sustainable practices and we do answer those as best we can. Primark even has a FAQs section on its website under its Ethics section which answers it's most commonly asked questions. As of FY2016 it operated 325 stores in 11 countries - Primark does not have an online store. In the case of Primark, and others, I dare say, it's about time, says Orsola de Castro, Founder and Creative Director at Fashion Revolution 2 and Esthetica. 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. In early 2016, the retailer started a new partnership with the Department for International Development 13 (DFID), which sees the two combining their presence, networks and expertise to boost the overall wellbeing of their workers in five of the retailers key markets - Bangladesh, Pakistan, Burma, Ethiopia and India. SM Insider Current Issue. According to WRAP, approximately 140 million pounds worth of used clothing is sent to landfills in the UK each year - accounting for 30 percent of consumers unwanted clothing. Primark Current business strategies Primark is the most growing retail company in UK. Weve always said that we have worked very hard with our suppliers, notes Stewart. What steps Primark has taken to become more responsible following Rana Plaza. But very often union members are threatened or fired for the work they do. India currently ranks 130 out of 188 countries in the UNs Gender Inequality Index, as gender equality is seen as one of the most pressing development challenges facing the country. For example, Primark has a team of specialist auditors who conduct audits in all of its stores across 11 countries. However, in spite of its retail success, Primark has been struggling to overcome the consumers pre-fixed notion that fast-fashion is not sustainable, and certainly not ethically made. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the companys supply chain. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. Its own in-house teams are supported by independent, third-party auditing companies, which are said to be critical to ensuring Primark upholds its monitoring standards. But how responsible are Primarks in-store working conditions? The results are truly shocking. One of our long-term goals is to source all of our cotton more sustainably, says Stewart. For a number of years, weve been working closely with industry partners sharing information about where Primark products are made. But in order to properly tackle many consumers perception and predisposed disposition against Primark and its products, the value fashion retailer may have to dig a little deeper. For the value retailer, a living wage is seen as one which includes the total cost of living, healthcare, food, education and housing. In the US, Primark has partnered with the charity Delivering Good, in which stores donate unsold items to those in need. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. Purpose of role: The role is critical to ensuring Primark can plan and execute an on time and in full departure of all our stock, with the contracted suppliers within the lead times agreed to the business. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. 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. However, although Primarks Code of Conduct remains an internationally recognised code of labour conduct, ensuring all its eight principles are consistently upheld at all of its suppliers around the world is another issue in its own right. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. Pursue a living wage for workers in its supply chain. They include decision-making and analytical processes that define roadmaps for products, services and market interactions. Credit: Primark. Role: Supply Chain Manager - Origin. 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. In addition, Primark also works with the ILO Better Work Programme 4 in countries such as Vietnam, which aims to help factories meet and uphold international working standards. "For Primark, the pandemic stopped our only revenue stream in its tracks in an instant," Vanoli explained. As Primark has also expanded into new regions over the last few years, the retailer has ensured that all its new locations are supported by safety specialists who help uphold its safety standards. 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. 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. Its a bit brutal, considering we do have a lot of future goals, but thats how it is. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit, [But] I do not think we are actively encouraging people to buy more than they need with our low prices, we are providing affordable fashion, argues Stewart. But how sustainable is Primarks sourced cotton? 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. I think that the information has to be there for the consumer to make an educated choice. Is Primark doing enough in terms of sustainability with its excess stock? As Primark has become more actively involved in the recycling process of its materials, it has been able to significantly reduce the volume and frequency of waste collections at each store and aims to expand this system to additional regions. Our experts can deliver a custom Primark Stores Limited's Supply Chain Management paper for only $13.00 $11/page. When companies discount to shift stock, margins are compromised. So we are sharing that information - we are just not making it public. A supply chain strategy is a process that manages networks and services between suppliers and companies without causing friction. To be included on the map, factories must have produced products for Primark for at least a year and be an established supplier. It outlines the key processes, technologies, and partnerships that the organization will use to optimize the efficiency and effectiveness of its supply chain. If you go to a Primarks further up North, in Grimsby, UK for example you can see people are buying one or two things, not bags and bags of things - and we can see this reflected in our sales data. 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