Primark adopted computerized customs clearance for improving the speed of business operations. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. We actively engage with our suppliers, chemical experts, other retailers and organisations to help bring about sustainable change, states Primark in its Corporate Responsibility Report 2016. Our Environmental Policy, which sits within our Code of Conduct. May 4, 2022 Primark is one of the first brands that come to mind in fast fashion. Sustainability is a complex issue, stresses Jacinta FitzGerald, Head of Research at Project JUST 3. The value retailer disagrees with this opinion, as Stewart says Primark has invested a lot in improving the quality of its garments over the last few years. Primark, a member of the Sustainable Apparel Coalition, has developed a new online tool that is helping usher in a new era of transparency for the retailer. But with 98 percent of its factories also manufacturing products for other brands several of whom have begun to publish the details of their sourcing practices the company felt the time was right to share this information. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. 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. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. Credit: Primark. 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. 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. But the value fashion retailer has yet to explore alternative solutions or set itself fixed goals in reducing its greenhouse gas emissions. 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. What is Primark doing to offer affordable fashion at an amazing price? Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. We would suggest the brand show leadership by setting goals to reduce greenhouse gas emissions for its manufacturing supply chain, and start to introduce the use of renewable energy, along with increasing its use of sustainable fibres, increasing transparency of its supply chain and working to increase the percentage of its First Tier suppliers that comply with its Code of Conduct., Primarks stance on recycling textiles and sustainable fibres, In addition to working with SCAP and ECAP, Primark has been running a clothing recycling pilot for the past few months in selected stores in Germany and the UK together with I:CO 7. The team works together to make sure each location is fully compliant with the regulatory requirements and that the value retailer continues to meet accepted good practices within the retail industry. Credit: Primark. At the Workday Elevate Digital Experience 2021 in the UK, Mark Judd, vice president of product strategy, EMEA, at Workday, spoke to Lorraine Culligan, group director of people and culture, and Ian Lynch, head of people systems at Primark, a fashion retailer headquartered in Dublin. It is hard to resist the allure of a good bargain, but fast fashion means were consuming and trashing fashion at a higher rate than our planet can handle, warns Kirsten Brodde, head of Greenpeaces Detox My Fashion campaign 11 in a statement. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. 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. Primark previously kept the details of its suppliers factories private, regarding it as a matter of commercial advantage. How Primarks Sustainable Cotton Program is impacting the lives of female cotton farmers, The reported results show that working with farmers at this level can have a number of positive impacts. Its suppliers factories. Credit: Love Your Clothes, Video: I:CO | RETHINK. Role: Supply Chain Manager - Origin. Credit: ABF plc. Rather than giving customers a discount voucher for their next purchase in-store, Primark gave customers an organic cotton bag in return for a clothing donation. Working with supplier factories through its Ethical Trade program and having in-country teams analyzing payroll data is part of the company's strategy, as well as following fair purchasing practices. Hover your mouse over the photos to learn more. . Primarks margins are also said to half a high as those of its fast-fashion competitors. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. Although it is grown on large-scale industrial farms in certain regions, in most cases the cotton used to make textiles and apparel comes from small farms in low-income countries, such as India, China and Pakistan. Primark's supply chain, and indeed business strategy, is based on a highly efficient sourcing model whereby it aims to get products from initial design concept onto shelves in as little as six weeks, with merchandise sourced from all four corners of the globe. 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. The most recent report released in July 2016, ranks Primark in Evolution Mode, with Greenpeace stating that although the brand performs well on the elimination of perfluorinated chemicals (PFCs) and transparency, it fails to take individual responsibility for the main tools it needs to meet its Detox 2020 plan. The report notes that Primark chooses to rely on the ZDHCs flawed methodology, which means the retailer is not selecting new target chemicals for eradication, or ensuring when it does test for their elimination, it is as close to possible to zero. Greenpeace encourages Primark to adopt a clean factory approach, which sees chemical elimination targets applied to suppliers entire factory floor and not just to Primarks own production lines. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. 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. 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. Primark tries to cut down all unessential expenses, reduce wastage, less direct marketing option, so that it can maintain the cost of the product. Credit: Primark. Their cooperation began when Primark had just 15 storestoday, the international fashion retailer has nearly 400 brick-and-mortar stores across 13 countries. However, the Government of Uzbekistan forces more than a million people 8 to work in the cotton fields each harvesting season and numerous reports highlight cases of human rights violations and forced child labour are rifein Uzbek cotton production. When companies discount to shift stock, margins are compromised. Skip to main content Skip to navigation hot-topics Trending Four-day week 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. Its not something new, its business as usual and we have been doing it for a very long time. One brand cannot single handedly reduce overtime or raise wages for the workers who make their clothes, says Lotte Schuurman, Communications Officer at the Fair Wear Foundation. Now with the younger generation becoming increasingly technical and visual, we felt that 360 degree video was the right format to do that in," explains Stewart. 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. Nevertheless cotton, a natural fibre, makes up a large percentage of its apparel range, even though it remains a labour and resource intensive product. REWARD. 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. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. We do share information on which countries we are sourcing from with the public, but not specific factories., Primarks battle against modern day slavery in its supply chains, Rather than cutting ties with suppliers who do employ vulnerable refugees, Primark works with suppliers and local partners to help them get papers for legal employment and proper payment. One of our long-term goals is to source all of our cotton more sustainably, says Stewart. 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. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. 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. We share 98 percent of our factories with other high street retailers, stresses Stewart. 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. At Primark, we're proud of our low prices. All the stock we have in store which we cant sell, all our buying office samples and excess stock, is donated to Newlife. Primark first started working with Newlife in 2010, and since then has managed to generate more than 2 million pounds in donations, which has been used to purchase equipment such as wheelchairs, nurse services and fund medical research. NGOs and trade organisations agree that this, as well as working with trade unions, is key for any fashion retailer in tackling cases of forced labour in developing countries. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? 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. The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. 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. Ethical Consumer considered remuneration over 1 million to be excessive. Average farmer profit increased 247 percent during its third year. This written down reality says nothing about what is really happening within the supply chain. We suggest Primark share more data with its shoppers concerning the workers that make its clothing, and show how the brand is working to ensure they are treated ethically, so shoppers can see first hand the stories behind their clothes, says Jacinta FitzGerald, Head of Research at Project JUST 7. It would be interesting to see how they followed up on the audit findings., It is impossible for us to know the full scope of its audit programme or how frequently individual factories are audited, adds Jacinta FitzGerald, Head of Research at Project JUST 9.The brand does state that all its suppliers must comply with its Code of Conduct, and are audited before any orders are placed. Primark maintains it keeps its audit reports finding private to maintain the authenticity of their results - not even the factories and suppliers audited are given full access to Primarks audit reports. So even though Primark may have a number of initiatives in place aimed at improving employee wellbeing, it seems as if the effects of these programmes are not as beneficial or effective for all its workers - in particular its store employees. 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. Then when the product goes into the production side, we have quality checks during the products manufacturing as well, which has made a real difference as we are noticing a positive response from customers. Best known for its low price and high value offering, "Amazing fashion, amazing prices", the high street staple has extended its reach across Europe and overseas into the United States. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. 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. Primark is using its global scale and reaching across its entire supply chain and its own operations to action the new strategy with nine key commitments, through three key areas. Photo: Primark Gent opening Belgium via AFP. 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. Yet it is also a challenge for garment and textile companies, who consider their competitive advantage to lie partially in their unique supply chain decisions for example, where they are placing orders, prices paid and forecasting. In the US, Primark has partnered with the charity Delivering Good, in which stores donate unsold items to those in need. 1: Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping. Credit: Primark. It must involve end-to-end supply chain processes like sourcing goods, delivery and logistics . Milan, Italy Primark store photo. Milan, Italy Primark in-store photo. Primark sets out 'ambitious' sustainability strategy Manage Cookie Consent To provide the best experiences, we use technologies like cookies to store and/or access device information. Photo: Primark Employees at Primark Den Haag. "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. The pilot was well received by Primarks shoppers in the test stores, and at the moment Primark is currently working out all the legal requirements to roll out the initiative to all its stores in all its markets. 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 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. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. 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. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. Additionally, other fast fashion brands are researching circularity, where used garments can be returned to the brand, the garment broken down (either mechanically or chemically) and respun into new yarn, then made into a new garment, adds FitzGerald. Work is in the early stages, notes Stewart, so it has yet to be seen what, if any achievable impact, the initiative has on the wages of garment workers. Brands can work very hard on improving their purchasing practices - on forecasting, on production planning all of which can reduce their risk of causing overtime - but if they are a small player and other brands have poor management practices, the results on the factory floor can still be disappointing. Primark Current business strategies Primark is the most growing retail company in UK. 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. I think the one thing I would say is that it depends where you live. Depending on how consumers respond to the video, Primark may consider creating more - but for now the value retailer is pleased with their first 360 degree video. We have to find a more holistic way to share what we do., We have to find a more holistic way to share what we do. 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. This short film explores the challenges the garment industry in Bangladesh faces as it. In addition the Farmers Field School has made Primark realise how important education truly is for farmers and what impact it can have on their lives. Unfortunately, Primark does not enclose their supplier list which makes it really hard to verify if what they communicate about their supply chain is actually true, continues Scally. 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. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. Our experts can deliver a custom Primark Stores Limited's Supply Chain Management paper for only $13.00 $11/page. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the companys supply chain. This website uses cookies for analytics, advertising and to improve our site. 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. We know that as well as ensuring worker rights are protected within the factories we work with, we can positively impact lives outside of the factory too. One of the many places that Primark gets its cotton from is Gujarat in India. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. 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. For us sustainability is just about doing it across the board, notes Stewart. Strong union representation can bring labour violations to light. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. Primark's supply chain took centre stage during the event and notably, management went into detail on the price-points of Primark's goods and how they were able to keep them so low. Although Primark has pledged not to knowingly source cotton from Uzbekistan, it does not seem to have any secure policy in place to guarantee it is not sourcing cotton from there, raising concerns about traceability and transparency within Primarks supply chain once more. 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. However, Primark does ensure that all its workers undertake an online health and safety induction programme in their local language, at a time and pace which is suitable for them. Origin coordination is critical with factories and suppliers. Primarks expansive product range includes womenswear, lingerie, childrenswear, menswear, footwear, accessories, beauty, hosiery and homeware. 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. How we collaborate and innovate with our suppliers and partners. 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. However, Primarks sustainable cotton programme is not its only initiative in place aimed at empowering and educating its female garment workers. 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. For example Primark claims to not spend any money advertising and orders its products in large volumes well in advance, so they can keep their overhead costs as low as possible. Almost all companies have a Code of Conduct, it is just a formality, counters Tara Scally, Campaign Coordinator for the Dutch branch of the Clean Clothes Campaign 7 (CCC). We are trying to look collaboratively as to what best practice looks like to build a framework to offer suppliers a consistent message on how this is the standard, and what implementation looks like. We deliver. 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. They concentrate on improving the efficiency of supply chain management. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. A high-tech procurement strategy that's reaping rewards. 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. About a 4 minute read. Since then Primark has continued to work with local partners and non-profit organisations to ensure any funds or support they gave to workers and their families would be secure by offering financial advice and guidance. Credit: Primark. 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. Through our Supply Chain modeling and analytics capabilities, we enable fact-based decision making around your supply chain strategy and network (footprint) design that will drive speed, agility and efficiency. In short, we were looking to decrease the cotton farmers input costs, but increase yield of cotton and income and improve their overall lives and health, continues Stewart. Primark Business Strategy Analysis - Assignment Desk Mar. The clothing must also be recyclable. Weve always said that we have worked very hard with our suppliers, notes Stewart. Why Primark's sustainable cotton push is good for female farmers. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. Primark has published the results of their sustainable cotton programme on their website, as well as personal stories from the farmers themselves, but Stewart admits the company is still learning on how to take what they have learned from the pilot all the way through to end production to bring it to scale. In order to ensure garment workers can have easy access to their bank accounts, Geosansar bank kiosks are located close to factories and worker communities. It's basically a strategy used to overview your whole supply chain. Photo factory via Pexels. Get some inspiration for your paper by reading our sample! Primark also runs its Retail Manager Development Programme (RMDP), a bespoke supervisor development programme in the UK and northern Europe and is in the process of rolling it out to its other countries. As a globalization strategy, Primark carries out its operation in 61 countries. Primark. 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. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. 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. Off-site worker interviews by trusted organizations will more likely reveal the truth than company organized visits.. But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. 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