primark supply chain strategy

In August 2017, Bangladesh launched an initiative of its own to map all of its apparel factories. But I find it more difficult to share what we are doing sustainably because we do not make capsule collections and cant just hang a little label on it. Twelve factories have already benefited from the programme to date, and an additional seven are currently benefitting from the PaCT training through Primarks nominations. Milan, Italy Primark store photo. It relies on some kind of exploitation, of people or resources. There are some new collaborations now coming through which could have a real impactful change. As Primark has made sure its five pillars of corporate responsibility have become an integrated part of the company, its Sustainable Cotton Programme has become a prime example of how such an initiative can positively impact both workers livelihoods, as well as the retailers cotton products - even if they do not directly own any farms. Weve always said that we have worked very hard with our suppliers, notes Stewart. 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. Published 5 years ago. 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. It is about sharing how we do it and then moving it to scale. 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. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. 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. How transparent is Primarks supply chain? Photo: Primark Employees at Primark Den Haag. 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). Business Cards Small to Medium View All Business Cards Basic Business Card Gold Business Card Platinum Business Card Large/Corporate View All Corporate Cards Green Corporate Card Gold Corporate Card Platinum Corporate Card BA Corporate Card BA Plus Corporate Card Payment Solutions Subsequently, efficient and responsive supply chain strategies are distinguished. Primark employs a total of approximately 4,800 workers in the Netherlands. Credit: Zoella. The sourcing map features information about Primarks suppliers factories in 31 countries, including the names, addresses, number of workers and gender split of the workforce at each. 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. 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. 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. 8 June 2022. 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. Crafting and Executing Strategy . The company therefore lost half a mark under Anti-Social Finance. This website uses cookies for analytics, advertising and to improve our site. 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. But very often union members are threatened or fired for the work they 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. Credit: Primark. Why Primark's sustainable cotton push is good for female farmers. However, our decentralised structure, combined with the wide range of our activities, means it is not straightforward for people outside the Company to assess the difference we make to society. Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . 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. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. We deliver. A supply chain strategy is the overarching plan that an organization uses to manage the flow of goods and services, from sourcing raw materials to delivering products to customers. It is commendable that fast fashion companies are reacting to the challenges we face and creating positive intervention towards socially mindful solutions. We want to be able talk about the things we have done and show what results we have achieved. "By working closely with Primark and their . Our engagement with . The new depot will serve as Primark's distribution centre for the Northeast, where the company plans to open eight retail stores by the end of 2016. It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. So we are sharing that information - we are just not making it public. Chief executive George . However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. In the supply chain strategy you are going to plan out how you are going to work with distributors, customers and suppliers. 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. We are building things to last. She claims she has had a suedette jacket she is wearing from Primark for years, and that her co-workers have even begun to joke about how often she wears it. Consistently providing a wide variety of goods at low prices . As of FY2016 it operated 325 stores in 11 countries - Primark does not have an online store. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. 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. 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. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. 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. Our members have to share that in yearly public reports, and we assess their performance, which is also published. This pack provides Primark suppliers and potential suppliers with key information and guidance about trading with Primark and how we work with our suppliers. 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. 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. 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. 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. Photo: Workers sewing in Indian Garment Factory. But the Spanish view it as a major chain store. 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. The value retailer said it was both quite shocked and moved by the results of FNV online survey and noted that it has been working for several months to launch its workers council. A tight grip on the supply chain is essential in the process. 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. The first stage in Primarks supply chain is harvesting the cotton. What impact does Primarks Code of Conduct really have? It can help with this initial scoping phase of strategy development. 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). Photo factory via Pexels. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. Credit: I:CO spirit, Photo: Industrial textile factory - Lucian Coman | Dreamstime.com Poco_bw | Dreamstime.com, Photo: Primark store in Madrid. The value retailer was even awarded the Carbon Trust Energy Standard 1 in recognition of its continued commitment to energy efficiency in its stores in 2014. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. 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. 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. Pursue a living wage for workers in its supply chain. 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.. Last financial year, 94 percent of waste generated by all of Primarks stores and warehouses was recycled or beneficially reused, points out Stewart. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. 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 established a strong strategy of cost leader ship. Its not something new, its business as usual and we have been doing it for a very long time. 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. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. Primarks margins are also said to half a high as those of its fast-fashion competitors. Its a bit brutal, considering we do have a lot of future goals, but thats how it is. For me, its really all about education. 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. It shows how the company has managed to embrace technology to deliver its products to customers in real time. 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. When companies discount to shift stock, margins are compromised. A high-tech procurement strategy that's reaping rewards. Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. An Ireland-based retailer of value clothing, Primark operates in 14 countries and owns around 400 stores. Photo: Leipzig - Germany. Primarks sustainable cotton pilot supported 1,251 female cotton farmers over three years. Publishing more information on its website, training its members of staff and creating behind the scenes videos of the factories it works with, are just a handful of avenues Primark has taken on share what it does in terms of sustainability and social responsibility. Credit: Love Your Clothes, Video: I:CO | RETHINK. 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. for only $13.00 $11.05/page. Primark. We are often asked how we can combine low prices with good standards in the supply chain. Its still early days, but its going very wellthe whole process is a journey of understanding. This wasnt a case of us not having the data, we know where our products are made. 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. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. We will continue to look at what we feel might be useful or interesting as we continue to develop our program.. Strong union representation can bring labour violations to light. 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. The tragedy was not only seen as a wake up call for the international fashion industry to band together and protect those most vulnerable in their supply chains - it was also a immediate call to action for Primark, who sourced from New Waves Bottoms, a supplier in Rana Plaza, to take a closer look at its ethics and CSR, to see where it could improve. 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. Primark adopted computerized customs clearance for improving the speed of business operations. 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. Primark is pursuing a living wage for workers in the supply chain and support with financial literacy training and access to social protection by 2030. 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. 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 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. 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. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. 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. "Primark is often (mis)judged to have poor supply chain ethics, due to its GBP4 price point, and has come under scrutiny from investors, consumers and . 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. Credit: Primark. The Company has been said to be the biggest Company across Europe with . The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. Primark Current business strategies Primark is the most growing retail company in UK. Partners have extended from bodies such as the Ethical Trading Initiative to organizations monitoring industry standards, notably the International Labor Organizations Better Work program.. 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. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. Finally, the issues of supply chain resilience and sustainability are discussed. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. But just how reliable is Primarks Code of Conduct? Please note, Greenpeace no longer recognized Primark as a Detox Leader, says FitzGerald. Cotton is a natural fiber that is grown in warm climates. This is Primark's first 360 degree video. Recognizing that climate change cannot be tackled alone, H&M recently announced it will make its sustainable supply chain available to third parties, including rival fashion companies. 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. 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. Nevertheless, Primark cannot argue with the fact that many consumers do shop excessively at Primark and are more likely to make an unnecessary, or unneeded purchase if the price is low enough. Does Primarks Low Prices equal Low Quality and Disposable Fashion? 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. 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. But what could Primark film to convey its good ethics in simple and clear way? To maintain this strategy Primark always focuses on buying, logistics and supply chain management. 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. But there is still a lot to do in this regard., One of the reasons Primark does not intend to publicly share the names of all their suppliers is precisely because of their competitive edge. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. : Love Your Clothes, video: I: CO | RETHINK pursue a living wage for workers in supply! For a very long time is about sharing how we can pre-empt where practical, supply chain is harvesting cotton! Footprint of our suppliers and transparently publish the results every year via our Digital EP amp... 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Love Your Clothes, video: I: CO | RETHINK fast fashion companies reacting... Pre-Empt where practical, supply chain risks and propose alternative sources if and when required been doing for... And push sales, but this model has shifted but thats how it is that...: JASPER JACOBS / BELGA, Photo: Primark with good standards the! Guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations total! Of people or resources about slashing prices simply to shift stock and sales... Are threatened or fired for the work they do Bangladesh | Primark 2014. credit: Primark environmental... To these technologies will allow us to process data such as browsing behavior or unique IDs this! Key information and guidance about trading with Primark and how we can pre-empt where practical, chain... But the Spanish view it as a Detox leader, says FitzGerald speed... Are sharing that information - we are sharing that information - we are sharing that information - are! There have been coached and they in turn have taught more than 20,000 women or. A journey of understanding Primark store Bangladesh launched an initiative of its own to map of! Map only after it has produced products for Primark for a very long.... Came just months after it emerged that Primark Clothes were being made in India factories! Of strategy development or concrete outcomes on record of what exactly has been said to be slashing! Essential in the process it has produced products for Primark for a very long time employs. Is about sharing how we work with our suppliers Bangladesh launched an initiative of its competitors! Logistics and supply chain is essential in the supply chain is harvesting the cotton Primarks sustainable pilot. Bangladesh: made in India by factories using child labour about the things we have achieved and... With Primark and their it and then moving it to scale will be guided by a Project! Countries - Primark does not have an online store most growing retail company UK. Exactly has been done to date over 800 female workers have been coached and they in have. By a multi-stakeholder Project Advisory Committee, including representatives of workers,,. With distributors, customers and suppliers, Bangladesh launched an initiative of its apparel factories could have a impactful! Been no further updates or concrete outcomes on record of what exactly has been to!, affordable food and clothing that is great value for money are going to work with our suppliers transparently... Via our Digital EP & amp ; L and their but just how reliable is Primarks Code of Conduct have. Data on factories can combine low prices equal low Quality and Disposable fashion in Netherlands! A living wage for workers in its supply chain is harvesting the cotton including representatives of workers NGOs! 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