In addition, the Irish retailer launched the Pashe Achi Project to ensure compensation recipients retain access to their financial compensation and understand their rights. 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. 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. Pursue a living wage for workers in its supply chain. Its suppliers factories. 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. A quick Google search shows exactly how fast Primark haul videos are growing in popularity - with 3.63 million results showing up for Primark haul 2017 versus 2.95 million hits for Primark haul 2016. Many of these videos attract millions of views - for instance YouTube favourite Zoellas latest Primark Haul, entitled The Biggest Primark Haul I've Ever Done, was uploaded on March 21, 2017 and already counts over 2.6 millions views. As a leading member of ETI, Primarks Code of Conduct is founded on the ETI Base Code which stresses that wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmarks, whichever is higher. 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. 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. They discussed a number of HR-specific trends, including . How we collaborate and innovate with our suppliers and partners. Credit: Paul Marotta / GETTY IMAGES NORTH AMERICA / AFP, Video: Primark The Biggest Primark Haul Ive Ever Done. For example, Primark is working on improving its injury rate as part of its wider scheme to boost its safety performance, according to its Corporate Responsibility Report 2016. 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. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. Primark is a member of the Sustainable Apparel Coalition. 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. Credit: Primark. Over the years Primark has implemented a series of strategies and initiatives which vary from improving the livelihoods of its garment workers, to reducing its carbon footprint as well its chemical usage, water usage and waste output, to using more sustainable materials. 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. Strong union representation can bring labour violations to light. An Ireland-based retailer of value clothing, Primark operates in 14 countries and owns around 400 stores. Photo factory via Pexels. 8 June 2022. Credit: Primark. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. I think that the results of the pilot in relationship to the impact theyve had on the cotton farmers have been significant - theyve just been phenomenal.. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. The ERICC system offers real-time information on the primary energy drivers within any store and indicates how a store should be performing from an energy management point of view. It involves looking at a product's full set of inputs, including raw material, water, energy and chemical use, along with the social inputs, manufacturing, consumer use and end-of-life. Four factors usually influence an organisation's supply chain strategy for the supply chain models they use: Industry. 95% of our manufacturers are based in Italy. 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. Cotton is a natural fiber that is grown in warm climates. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. 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. 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. 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. 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). Finally, the issues of supply chain resilience and sustainability are discussed. Milan, Italy Primark in-store photo. 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. However for others, like Primark, it was a call to take a closer look at its supply chain and operations to see where it could make even a larger impact through its sustainable and ethical initiatives. 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. Primarks Code of Conduct lays out the core principles their suppliers and their factories must adhere to when it comes to working conditions, such as working hours, fair wages and workers rights in order to do business with them. 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. We share 98 percent of our factories with other high street retailers, stresses Stewart. 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. 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. Nevertheless cotton, a natural fibre, makes up a large percentage of its apparel range, even though it remains a labour and resource intensive product. Over in the UK and in the US, Primark sales assistants have also shared concerns feeling overworked and underpaid, having to deal with overbearing management teams, as well as difficulty in taking time off, on job boards Indeed and Glassdoor. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. The firm's positioning strategy entails the firm as the most cost effective firm in the fashion retail sector in UK. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . Primark's new sustainability strategy includes nine concrete pledges. However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. 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 We are starting to share more films - our cotton film is a good example of that - but we are trying to make it more engaging and interesting for customers based on the feedback we get and offer as much information as possible." 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. 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. This is crucial to achieve the standards we require for workers in our supply chain. 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. In England, Primark is seen as a discounter. In any event, wages should always be enough to meet basic needs and to provide some discretionary income. Primark states it requires all its suppliers to adhere to this definition for all workers within its supply chain. 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. "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 programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the companys supply chain. The company therefore lost half a mark under Anti-Social Finance. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such as Vendor-managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR) are presented. Its one of our challenges we have to deal with. 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.. For example, Primark established a resource recovery unit in its German depot centre in July 2015, where cardboard, plastic and hangers are collected from its Northern European stores to be reprocessed and sent for recycling. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. It divides the supply chain process into three distinct phases. Primark established a strong strategy of cost leader ship. Hence whenever we see that there are more member companies sourcing from the same factories, we encourage them to exchange information on audits, remediate together and cooperate on further improvement plans., What Primark is doing to produce clothing with the least amount of harm to the environment, Our aim is for all our stores to be as sustainable as possible with the technology and infrastructure thats available at the time. Our reason for doing so is to control and retain the integrity of them. Usually suppliers contact an external party of their own choosing when conducting a factory audit. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. Credit: Pixabay, Video: An introduction to Love Your Clothes. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. Another programme that Primark has had in place since 2009, focuses on enriching the lives of its workers, and sees the value retailer working together with Social Awareness and Voluntary Education 4 (SAVE) to educate its workers in Southern India. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How Fair Wear Foundation 12 has done interesting research revealing the possibilities. It has stores across Europe and in the United States. 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. Evolving Business Needs. With such rapid growth, the retailer's technology needs have changed considerably over time and having the . 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. That way they know what to focus on and we can protect certain parts, such as the confidentiality interviews, explains Stewart. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. Crafting and Executing Strategy . Use of chemical fertilisers were reduced by 40 percent. From my point of view, I have seen real change coming through. Sustainability is a complex issue, stresses Jacinta FitzGerald, Head of Research at Project JUST 3. We believe Primark could do more to educate its shoppers on how to care for their clothes, Primark is also updating its website to offer consumers more information on its ethical and sustainable activities. Primark also increased the number of fun, team-based projects with employees to boost direct engagement, which led to over 100 employees taking part in the wellbeing summer challenge. Over in Spain, in Madrid one Primark retail worker claimed he was making the same amount of money working 30 hours a week at Primark in 2016, as he was working 12 hours a week at department store El Corte Ingls in 2007 6. 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. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. Weve always said that we have worked very hard with our suppliers, notes Stewart. Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . But for us it's all about making fashion affordable at a value people can afford. 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. 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. Primark Business Strategy Analysis - Assignment Desk Mar. Primark also ensures its suppliers use a streamlined production process to make its clothing in the most effective way possible. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. 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. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . 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. 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. Credit: FashionUnited. Credit: I:CO spirit, Photo: Industrial textile factory - Lucian Coman | Dreamstime.com Poco_bw | Dreamstime.com, Photo: Primark store in Madrid. Circularity addresses the problem of increased consumption and disposal of limited resources. Credit: Primark. For inorganic growth it made strategic acquisitions. Understanding the environment, market shifts and analysing strategy, competitive advantage and the economy will allow Primark to maintain their large market share and position as the largest retailer in the UK (ABF, 2016). Our experts can deliver a custom Primark Stores Limited's Supply Chain Management paper for only $13.00 $11/page. 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. 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. For example, back in 2014 and 2015 British shoppers are said to have found letters and hand stitched labels in garments pleading for help, which aimed to raise awareness for the terrible conditions workers were apparently forced to endure. The value retailer makes sure each supplier it works with has a full formal audit once a year, which is carried out by Primarks own team or approved external auditors. 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. How a procurement transformation reduced sourcing cycles by 60%. 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. Whether its financial literacy, health education or helping workers understand their rights, weve seen that simple initiatives with local partners can make a huge difference., What Primark is doing to improve the lives & wages of its garment workers. 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. Prospect Analysis Stores at Primark RECYCLE. 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. Credit: Love Your Clothes, Video: I:CO | RETHINK. 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. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. 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. 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. 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. [Sustainability] is not about little capsule collections. Strategy No. Transparency for supply chain has always been a critical agenda. Fashion supply chains tend to be very long and complex, involving thousands of workers across the board. It is a shame that so much hard work of workers worldwide ends up as waste, Tara Scally, Dutch Campaign Coordinator for Clean Clothes Campaign (CCC) 11. However Primark does not tackle its factory audits alone. 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. Primark opened it first store in Rotterdam, the Netherlands in 2008. Objectivity has partnered with Primark since 1991. For example Primark has partnered with numerous NGOs, such as Solidaridad, CottonConnect and Made-By, as well as organisations like The Ethical Trading Initiative (ETI) 1 and together has instigated many initiatives aimed at improving the livelihoods, health and safety of its workers. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. 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. We will continue to look at what we feel might be useful or interesting as we continue to develop our program.. 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. A link to the sourcing map is available here. 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. We are looking at it. These posters depict the separate principles of the Code of Conduct in a cartoon-style images which can easily be understood by all workers. Skip to main content Skip to navigation hot-topics Trending Four-day week 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. In united states, Southewest Airline has same strategy with success in aviation sector. At the moment it remains unclear what percentage of Primarks apparel collections consist of recycled materials, or if they use recycled fibres in their clothing at all, an area which they should consider moving into according to international organisations. For Stewart, the community impact of the programme and the knowledge the farmers have gained thanks to the programme has been the most rewarding to witness. This strategy is pursued by companies selling affordable products across all sectors. What steps Primark has taken to become more responsible following Rana Plaza. Additional business activities that the companies related to the integration of sustainability into corporate strategy were the creation of a sustainable product, adoption of a social and environmental management system, sustainable management of the value chain, satisfaction of unmet social needs, and reporting on financial and non-financial 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 is part of the Better Work programme and a full member of ETI - all positive initiatives which can contribute to better labour conditions. Primark will then follow up with the factory in question at a later date, either through a pre-announced check or a spot-check, to ensure the issues have been handled effectively. 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. Sign up for SB Brand-Led Culture Change, best rates expire March 3rd! tailored to your instructions. REWARD. This is Primark's first 360 degree video. . In addition to signing onto the Bangladesh Accord, the company has developed a Sustainable Cotton Program and as a member of the Zero Discharge of Hazardous Chemicals (ZDHC) Program has committed to phasing out the use of certain chemicals in its supply chain by 2020. These teams based in its nine key sourcing locations, such as China, India, Bangladesh and Turkey, act as the retailer's "eyes and ears on the ground," according to Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. 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. These are: Giving clothes a longer life - We will become a circular and more sustainable business. Case study on Primark sustainability, ethics, supply chain. 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. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit. With limited resources for apparel production, there is only so much retailers like Primark can due to limit the negative impacts of its current business model. 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. Credit: Primark, Video: Primark - There is nothing like us on the high street. We know consumers and stakeholders are interested and we thought that publishing the Global Sourcing Map was a big step on that journey. 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. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. But how responsible are Primarks in-store working conditions? Plus, our third-party logistics providers. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Primarks parent company Associated British Foods (ABF) is listed in the 20-29 percent band range, together with the likes of Next, Kering and TJX Companies. In the video Zoella shows off each item one by one to her viewers: young, impressionable women who all want to look and dress just like her - which leads to many of them also shopping in bulk at Primark. 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. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . But very often union members are threatened or fired for the work they do. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. But we have been very pleased with the trial and our decision to roll it out. Stewart notes that they may have to adopt a slightly different model in the US due to legal reasons, but they aim to have a similar system in place overseas. 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. Primark Current business strategies Primark is the most growing retail company in UK. With success in aviation sector principles of the sustainable Apparel Coalition year via our EP! Based in Italy / AFP, Video: I: CO | RETHINK all sectors Bangladesh! 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