An Ireland-based retailer of value clothing, Primark operates in 14 countries and owns around 400 stores. Credit: Primark. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. 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. 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. Credit: Primark, Video: Primark HERproject. 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. Bangladesh posters: These posters were created in conjunction with workers, with support from SHEVA NARI O SHISHU KALLYAN KENDRA. Use of chemical fertilisers were reduced by 40 percent. More transparency is needed to verify if the claims being made in Code of Conducts are really true., Primarks approach to due diligence and factory audits, For example in order to ensure that all garment workers understand Primarks Code of Conduct, which can be difficult in countries such as Bangladesh where many workers are illiterate, Primark has developed posters together with local charities. 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 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. 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. 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. Implemented by Dhakas BRAC Universitys Center for Entrepreneurship Development in collaboration with BRAC USA, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and C&A Foundation, the Digital RMG Factory Mapping in Bangladesh (DRFM-B) project is the first of its kind to attempt to digitally map the entire garment industry in Bangladesh and marks a critical industry shift toward more transparency. FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. Primark established a strong strategy of cost leader ship. This short film shows how Primark's partnership with Geosansar helps garment workers open a bank account for the first time, while offering financial education as well as easy access to banking. 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. If you think about the cotton project for example, we only started communicating that last year, when we have been working on it for three years. Primark is a member of the Sustainable Apparel Coalition. 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. 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. 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. Fair Wear Foundation 12 has done interesting research revealing the possibilities. Primarks Ethical Trade and Environmental Sustainability Team will be responsible for providing updates to the Primark Global Sourcing Map on a twice-yearly basis. At Primark, we're proud of our low prices. . This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. Their sales grew 4 percent compared to last year and both their. Jobs. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. 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". 1: Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping. Primark adopted computerized customs clearance for improving the speed of business operations. 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. For inorganic growth it made strategic acquisitions. Brands should plan accordingly so no garments go to waste., What Primark is doing to cut down its use of chemicals, Our objective is to have full traceability from all Primark supply chain partners of upstream manufacturing, product and chemical inventory information for every point in the supply chain, Primark also supports the Partnership for Cleaner Textile industry (PaCT) 16, a holistic programme which supports the Bangladesh wet textile processing factories in adopting cleaner production methods. The Gartner Matrix for Supply Chain Strategy offers a construct by which to map supply chain strategy, priorities and interdependencies. 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. 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. tailored to your instructions. Regarding Primark's China sourcing strategy, on the one hand, Primark sources from as many as 475 suppliers located in China, far more than any other Asian country. 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. 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. Input costs were reduced by 19.2 percent on average. 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. 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. 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. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . Cotton is a natural fiber that is grown in warm climates. 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. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. 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. 3 Supply Chain Strategies: Which is Best for Your Business? We are looking at it. 95% of our manufacturers are based in Italy. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. 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. We currently feel that information is competitive intel we do not want to share. 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. From my point of view, I have seen real change coming through. These audits, which can be announced before hand or not, include confidential worker interviews. At the same time Primark decided to exclusively work with female cotton farmers in Gujarat, Northern India during the pilot because they realised many other cotton initiatives lacked gender focus. Objectivity has partnered with Primark since 1991. 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. 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 has saved approximately 30 million kWh of energy through its bespoke software system called ERICC (Energy Reduction Information and Control Console). 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. 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. We deliver. 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. But Primarks ethical and sustainable initiatives go much further than Rana Plaza. 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. We know consumers and stakeholders are interested and we thought that publishing the Global Sourcing Map was a big step on that journey. 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. As we launch the Primark Sustainability and Ethics Progress Report, we reflect on a foundational year, which was focused on developing the internal processes and programmes that will underpin the changes needed within Primark and across our value chain to deliver on our Primark Cares strategy. 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. This website uses cookies for analytics, advertising and to improve our site. 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. 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. Because if you give someone an education, it stays with them and thats sustainable. She stressed that the cotton project focuses on giving farmers a hand up, not a hand down in the form of free seeds, or pesticides or equipment. But the Spanish view it as a major chain store. The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. 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. It must involve end-to-end supply chain processes like sourcing goods, delivery and logistics . While Primarks work does show that the retailer is committed to improving wages for its garment workers, the value retailer seems to be stuck at the strategy level and research stage and has yet to begin developing long term building blocks to paying livable wages. Design clothes with strengthened durability and to be recycled. 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. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit. But for us it's all about making fashion affordable at a value people can afford. Primark. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. However, in spite of the numerous initiatives Primark has undertaken to combat its chemical usage, the value retailer may not be able to reach its Detox commitment to Greenpeace by 2020. Strategy No. The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. (Black Well). According to the ranking, the large majority of the low performing companies , which includes ABF, are falling overwhelmingly behind, with all the dangers for human rights abuse of workers and communities that this implies., But these rankings have not discouraged Primark from looking for new ways to improve the wellbeing of its garment workers in developing markets. Copyright Primark Stores LTD 2012. With such rapid growth, the retailer's technology needs have changed considerably over time and having the . 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." 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. 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.. We are big business and people talk a lot about us because we are big., Lets just level the plane and get rid of this assumption that paying more for an item somehow makes it more ethical - price is not an indication of good or bad ethics. 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. The one in the UK, which covers all our European stores, is Newlife 8, a foundation which supports children who are either terminally ill or very physical disabled, explains Stewart. Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . 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. 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. 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. What steps Primark has taken to become more responsible following Rana Plaza. I believe it is more important to show, as transparently as possible, proof of the good we have already done, than to set a target of what we may do in the future, However, others disagree and argue transparency, as well as setting targets, are still not enough to make a real difference. . Primarks buying and merchandising teams in Dublin (Republic of Ireland) and Reading (UK) travel internationally to source and buy fashion items that best reflect each seasons key fashion trends. Where possible we encourage our members and all other garment brands- to increase leverage. Photos: Primark Sustainable Cotton Programme. 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. It's really interesting and been very helpful for when we have been giving school talks or teaching at colleges, adds Stewart. On April 24, 2013 a building housing five garment factories which manufactured products for approximately 28 brands, collapsed in near Dhaka, Bangladesh, claiming the lives of 1,138 workers and injuring more than 2,000 individuals. Primark's new sustainability strategy includes nine concrete pledges. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. We will be putting a lot more information concerning our ethics on there come May, continues Stewart. About a 4 minute read. 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