primark supply chain strategy

The Central Supply Chain Team is accountable for critical activities like planning, data & analytics, operational excellence, supply chain business systems development and . 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. 8 June 2022. Our experts can deliver a Starbucks Company's Supply Chain Management Strategies essay. It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. 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 lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. Evolving Business Needs. 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. Credit: Primark, Photo: Primark store Venlo. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. This short film shows how I:CO works with retailers to initiate clothing recycling drives in store, and encourages consumers to be more mindful with their unwanted textiles. 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. 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. It turned out to be such a success that the participating farmers achieved the following results by the third year: This short film follows the impact Primark's Sustainable Cotton Programme has had on female farmers in Northern India and includes interviews with some of the women involved. But very often union members are threatened or fired for the work they do. Primark previously kept the details of its suppliers factories private, regarding it as a matter of commercial advantage. Sustainable Brands Will a Sustainable Future for Agriculture Take Us Underwater? 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. We are looking at it. 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. 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 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. 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. 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). Where possible we encourage our members and all other garment brands- to increase leverage. 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. From what Ive seen is they are grading their factories based on their own audits. Credit: Primark. Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. In the US, Primark has partnered with the charity Delivering Good, in which stores donate unsold items to those in need. 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. As of FY2016 it operated 325 stores in 11 countries - Primark does not have an online store. 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. 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. 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. 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 currently uses the Cost leadership. 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. 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. Our experience is that transparency often can be among the most difficult requirements for companies that want to do good. However, even though Primark responded quickly to the allegations and was eager to improve conditions, FNV is aware time will show if working conditions improve and has therefore scheduled a meeting in three months time. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. It is a virtual tour. It's really interesting and been very helpful for when we have been giving school talks or teaching at colleges, adds Stewart. From the way we source our products to how we organise our stores, our business is based on doing some simple things very differently from other retailers, which is how we can keep prices low, says Stewart. But how sustainable is Primarks sourced cotton? Their sales grew 4 percent compared to last year and both their. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. 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. Credit: Primark. In September 2015, an ACT delegation, which consisted of IndustriALL and leading representatives from Primark, H&M and Inditex travelled to Cambodia to meet with suppliers, garment unions, the Labour Ministry and the Ministry of Commerce and the garment manufacturers association of Cambodia. Pursue a living wage for workers in its supply chain. There is pressure from outside organisations to set targets as soon as counting begins. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. Primarks expansive product range includes womenswear, lingerie, childrenswear, menswear, footwear, accessories, beauty, hosiery and homeware. The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. In addition, 81 percent of respondents said they felt that Primark was missing a workers council who could negotiate agreements on their behalf concerning use of store cameras in relation to their privacy - even though the council is required by law in the Netherlands for any company with more than 50 employees. 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. However, store employees in the Netherlands who voiced these concerns are not only ones working at Primark who feel this way. Fair Wear Foundation 12 has done interesting research revealing the possibilities. 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 That's why we work in partnership with global and local experts to help deliver change. Here, you'll find a case study on Starbucks' supply chain strategy. At the moment Primark does not purchase any raw cotton directly from farmers, as it does not directly own any mills or factories. We are all quite focused on the flagship stores, where you see people coming out of Primark with piles of bags. Photo: Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Thats why collaborative action is so important. The project collects comprehensive and accurate data on factories across Bangladesh the names, locations, numbers of workers, product type, export country, certifications and brand customers and disclose it in a publicly available online map. No matter what your budget, we have a great range of fashion and home accessories at affordable prices. Credit: Primark. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. 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. 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. 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. This is crucial to achieve the standards we require for workers in our supply chain. This is Primark's first 360 degree video. Primark. Strategy No. 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. Last financial year, 94 percent of waste generated by all of Primarks stores and warehouses was recycled or beneficially reused, points out Stewart. 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. 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. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. 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. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. We are often asked how we can combine low prices with good standards in the supply chain. A link to the sourcing map is available here. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . 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. The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. We try to be proactive and helpful partners when it comes to audits, points out Stewart. And the value retailers efforts have not gone completely unnoticed within the industry. The rise of haul style shopping videos on YouTube is just one example of how the value retailers pricing is affecting the way people shop and how they view their products. 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. Please note, Greenpeace no longer recognized Primark as a Detox Leader, says FitzGerald. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. Primark's first U.S. store launches September 10th in Boston's iconic Burnham Building, Downtown Crossing, with a second store opening planned in King of Prussia in November. But we know an ethical supply chain can't be a solo project. Its suppliers factories. 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. 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 is having to explain itself also to the Ethical Trading Initiative (ETI), the UK body set up to improve supply chain working conditions, which it joined in 2006. RECYCLE. However, some pioneering companies, like Filippa K and Nudie Jeans are beginning to break this mould and commonly report their factory lists, audit outcomes, and other data. 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. 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. Halve carbon emissions across its value chain. Suppliers can improve their working standards Primarks Director of Ethical Trade & Environmental Sustainability map. Are like for workers in Bangladesh piles of bags no longer recognized Primark as a matter of commercial.... Been very pleased with the trial and our decision to roll it out,! Concerns are not only ones working at Primark who feel this way audits include onsite management... 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