primark supply chain strategy

But for us it's all about making fashion affordable at a value people can afford. For the value retailer, a living wage is seen as one which includes the total cost of living, healthcare, food, education and housing. 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 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. 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. "The Primark Carton Optimisation Programme has contributed greatly to removing waste from our supply chain, allowing for reductions in CO2 emissions as a result of less packaging being produced, transported and processed as waste." The 24th Supply Chain Excellence Awards will take place on 12 November 2020. All senior members of staff have been trained to make sure safety culture and employee well being are embedded into role descriptions and that workers follow a thorough training programme before being allowed to work the shop floor. 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. Primarks GHG emissions grew 3 percent alone last year, as the value retailer attributes this growth to its expanding network of stores across Europe and the United States, leading to more transport movements of its products. Primark operates using a common set of global standards in all its sourcing hubs, known as its Code of Conduct 2. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. 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. 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. Credit: Primark, Photo: Primark store Venlo. In addition Primark has also achieved the Carbon Trust Standard for Waste for its waste management systems in store and is working to assume direct control over as much of its recyclable materials used during packing and transport as possible. Credit: Primark. But very often union members are threatened or fired for the work they do. 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. Photo: Leipzig - Germany. Primarks Ethical Trade and Environmental Sustainability Team will be responsible for providing updates to the Primark Global Sourcing Map on a twice-yearly basis. For us its about making sure that the people who touch the supply chain, whether its the workers or the communities or the environment we operate in, are looked after.. This includes guidance on onsite environmental health and safety issues, as well as waste and energy management.. Evolving Business Needs. 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. By paying for their own audit Primark is able to ensure the integrity of the audit is not influenced by any external factors and gain a clear picture of actual working conditions. Infographic Living Wage: Clean Clothes Campaign, Tailored wages report 2014. We know consumers and stakeholders are interested and we thought that publishing the Global Sourcing Map was a big step on that journey. Many workers take pride in the work they do and the clothing they make and do not deserve to be exploited as they are now. SM Insider Current Issue. 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. 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. 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. 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. 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. Primark has a large range of products from men's wear, women's wear, children's wear, accessories, footwear, lingerie, home wear, hosiery and much more. 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. 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. "We made a 360 degree video of one of suppliers factories in Bangladesh, says Stewart. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. We'll assume you're ok with this, but you can opt-out if you wish. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. For example, if an audit finds that factory workers are working more than the allowed overtime per week, Primark will work together with the factory managers to create a more flexible schedule, giving workers less overtime. Garment brands should use their power to make sure union members are protected., Primark does what it can do to help workers employed without the proper legal papers, but in the case of undisclosed sub-contracting, where approved suppliers outsource production to unapproved factories which use methods of forced labour, the value retailer takes decisive action, as it takes any breaches extremely seriously. Over the years Primark has ensured that they work with local organisations in all of its sourcing locations in order to create a support net for any employment challenges that may occur, according to Stewart. Primark products are made with respect for people and for the planet. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. 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. Get some inspiration for your paper by reading our sample! 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. Primark adds that it does acknowledge the inherent challenges in defining and calculating a living wage, but it believes that a negotiated approach remains the most practical and sustainable move and supports the development of all industrial strides taken to achieve this. 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. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. A survey conducted by the Business Continuity Institute showed that of the 526 responders across 64 countries, 34% of organizations reported an increased annual cost of 1 million or above, caused by supply chain disruptions. When companies discount to shift stock, margins are compromised. 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. Credit: Primark. 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. They include decision-making and analytical processes that define roadmaps for products, services and market interactions. 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. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. 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. 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. 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. 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. Without confidential worker interviews, many of these workers who fear losing their jobs - usually their only means of an income - may never share their real working experience with suppliers clients. It currently uses the Cost leadership. However, the opposing views on the quality of Primarks clothing does not change the fact that a large percentage of its clothing - as well as that produced by other fast-fashion retailers - ends up going to waste once it is discarded by consumers. 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. for only $13.00 $11.05/page. So while Primarks work does show that the retailer is committed to improving wages for its garment workers, the retailer seems stuck at the strategy level and research stage and has yet to begin developing long term building blocks to paying livable wages. 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 what is Primark doing to reassure its consumers that its products should be cherished and that people should not buy more than they need? One of our long-term goals is to source all of our cotton more sustainably, says Stewart. Primark also consulted with workers to ensure the posters were displayed in the best possible areas throughout the factories for maximum impact. 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. Strategy No. It's basically a strategy used to overview your whole supply chain. . 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. Its still early days, but its going very wellthe whole process is a journey of understanding. 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. 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. Historically we have always shared still photographs of the factories we work with, but we thought it would be good to bring it to life in another way. 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. 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. Credit: Pixabay, Video: An introduction to Love Your Clothes. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . Wal-Mart's competitive strategy is based on three dimensions: high product availability, a wide variety of goods, and everyday low pricing. The steps Primark is taking to improve garment workers wages. The training focuses on denim and jersey production, paying attention to the environmental impact of the main technologies used during the dyeing and washing processes. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. Primark has also committed to pursuing a living wage for workers in its global supply chain by 2030. It can help with this initial scoping phase of strategy development. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . 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. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. Photo factory via Pexels. At the moment Primark does have a few initiatives in place aimed at educating consumers on how to care better for their clothes, such as their partnership with SCAP 8. We would suggest Primark share the long term intentions of its recycling program, the anticipated impact of diverting these textiles from the waste stream and the current and future destination of the textiles collected from these programs.. Plus, our third-party logistics providers. Combined, these tactics are said to ensure Primark remains accessible and affordable to all shoppers, while offer good value for money - a goal the company has always kept in sight, according to Primarks Director of Ethical Trade & Environmental Sustainability. However, although Primarks Code of Conduct remains an internationally recognised code of labour conduct, ensuring all its eight principles are consistently upheld at all of its suppliers around the world is another issue in its own right. 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 thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. The company was forced to do a u-turn after a public outcry and stated that it would create a fund to supply garment workers. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. Use of chemical pesticides were reduced by 44 percent. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. Last financial year, 94 percent of waste generated by all of Primarks stores and warehouses was recycled or beneficially reused, points out Stewart. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. Transparency for supply chain has always been a critical agenda. 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. 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