For example, each Code states employment must be freely chosen, no child labour, and the freedom to form and join trade unions - all standards derived from the United Nations Declaration on Human Rights 6. From what Ive seen is they are grading their factories based on their own audits. Primark also ensures its suppliers use a streamlined production process to make its clothing in the most effective way possible. Credit: Paul Marotta / GETTY IMAGES NORTH AMERICA / AFP, Video: Primark The Biggest Primark Haul Ive Ever Done. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. 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. 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. One of the many places that Primark gets its cotton from is Gujarat in India. Founded in Ireland in 1969 under the name Penneys. 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. 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.. 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. 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. 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. How a procurement transformation reduced sourcing cycles by 60%. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. 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. 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". 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.. 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. Nevertheless cotton, a natural fibre, makes up a large percentage of its apparel range, even though it remains a labour and resource intensive product. 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. Now with the younger generation becoming increasingly technical and visual, we felt that 360 degree video was the right format to do that in," explains Stewart. . Should Primark be more open with consumers concerning sustainability? At Primark, we're proud of our low prices. We'll assume you're ok with this, but you can opt-out if you wish. What is Primark doing to offer affordable fashion at an amazing price? Building a solid, long-term relationship with their suppliers based on trust; paying their supplier a fair price for their products; ensuring labour unions are allowed within the factories they source from and are protected enough so they can do their work freely without being harassed are all key to tackling forced labour in the supply chain, says Scally. Primark opened it first store in Rotterdam, the Netherlands in 2008. Considering that the majority of Primarks products are made from cotton, we would suggest the brand dramatically increase its initiatives in this area by supporting similar programmes to achieve 100 percent sustainably grown cotton. In fact, the results of the cotton pilot programme were so successful they exceeded all Primark's expectations, which is why the value retailer has expanded the programme to support an additional 10,000 farmers in Gujarat over the next six years. Photos: Primark Sustainable Cotton Programme. At the moment Primark does not purchase any raw cotton directly from farmers, as it does not directly own any mills or factories. Average farmer profit increased 247 percent during its third year. 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. At the moment 57 percent of all Primarks GHG emissions result from the transporting of its goods and as Primark continues to grow, this percentage is only likely to increase. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . How Primarks Sustainable Cotton Program is impacting the lives of female cotton farmers, The reported results show that working with farmers at this level can have a number of positive impacts. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. Off-site worker interviews by trusted organizations will more likely reveal the truth than company organized visits.. Supply Chain of Primark The idea of supply chain management, has been an important factor in the industry especially on the firms that are engaged in the international market and is an ideal way to appropriately deliver the customer's needs in the most desirable way. Strong union representation can bring labour violations to light. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. Primarks expansive product range includes womenswear, lingerie, childrenswear, menswear, footwear, accessories, beauty, hosiery and homeware. Credit: I:CO spirit, Photo: Industrial textile factory - Lucian Coman | Dreamstime.com Poco_bw | Dreamstime.com, Photo: Primark store in Madrid. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. 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. Primark also consulted with workers to ensure the posters were displayed in the best possible areas throughout the factories for maximum impact. 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.. 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. Right from the start, when the buyers are developing the product, we ensure we have the quality team looking at the design of product. 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. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. 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. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. 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. A key part of the programme focuses on sharing lessons Primark and DFID learnt following the Rana Plaza incident, including the retailers initiatives with local partners to provide both long-term and short-term aid. It relies on some kind of exploitation, of people or resources. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. A link to the sourcing map is available here. We are often asked how we can combine low prices with good standards in the supply chain. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. For example, Primark has a team of specialist auditors who conduct audits in all of its stores across 11 countries. Primark does agree that it could be sharing more information on its sustainable and ethical practices with the public, even if consumers are not always asking for it. 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. 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. Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. 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. For us, we felt there was a natural cadence for getting this information out and launching the website was the first step, with the Global Sourcing Map following on as a second phase, Katherine Stewart, Ethical Trade and Environmental Sustainability Director at Primark, told Edie.net. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. Credit: Zoella. These audits, which can be announced before hand or not, include confidential worker interviews. for only $13.00 $11.05/page. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit. Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. But very often union members are threatened or fired for the work they do. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. 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. 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. It can help with this initial scoping phase of strategy development. As a 100% brick-and-mortar operation with nearly 400 stores across 13 countries, Primark felt these challenges across its retail footprint and inventory supply chains and learned new strategies along the way. But Primarks ethical and sustainable initiatives go much further than Rana Plaza. 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. 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. 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. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. Our experts can deliver a Starbucks Company's Supply Chain Management Strategies essay. 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. The results are truly shocking. 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. We currently feel that information is competitive intel we do not want to share. But the inspection reports are not made public, so it is impossible to verify if these inspections are really taking place; what is monitored; what problems are found and what corrective actions come out of these audits., Being honest about the issues and problems and the steps brands are taking to improve labour conditions, is key, adds Schuurman. 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. Strong union representation can bring labour violations to light. 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. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. Primark was among the first retailers to sign the Accord on Fire and Building Safety in Bangladesh, initiated by the IndustriALL and UNI Global Union. 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. Primark offers customers quality, up-to-the-minute fashion at value-for-money prices. Brands can work very hard on improving their purchasing practices - on forecasting, on production planning all of which can reduce their risk of causing overtime - but if they are a small player and other brands have poor management practices, the results on the factory floor can still be disappointing. Primark employs a total of approximately 4,800 workers in the Netherlands. 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. RECYCLE. These are: Giving clothes a longer life - We will become a circular and more sustainable business. 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. However, in order to reach its goal of creating clothing with the least amount of harm done to the environment, the value retailer should be looking into additional avenues to increase its use of sustainable resources, as well as its use of recycled materials. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. But what about Primarks Greenhouse Gas Emissions? The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. 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. 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. We would suggest the brand show leadership by setting goals to reduce greenhouse gas emissions for its manufacturing supply chain, and start to introduce the use of renewable energy, along with increasing its use of sustainable fibres, increasing transparency of its supply chain and working to increase the percentage of its First Tier suppliers that comply with its Code of Conduct., Primarks stance on recycling textiles and sustainable fibres, In addition to working with SCAP and ECAP, Primark has been running a clothing recycling pilot for the past few months in selected stores in Germany and the UK together with I:CO 7. From my point of view, I have seen real change coming through. 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. 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? 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. But we do share our supplier information with other partners we are in collaboration with, for example with the Bangladesh Accord 10. As a business we care about the impact. Thats why collaborative action is so important. For inorganic growth it made strategic acquisitions. We also believe Primark could do more to educate its shoppers on how to care for their clothes and encourage them to look after them and keep them for longer.. 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. 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. 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. Published Feb 16, 2018 4am EST / 1am PST / 9am GMT / 10am CET. 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. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the company's 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. India currently ranks 130 out of 188 countries in the UNs Gender Inequality Index, as gender equality is seen as one of the most pressing development challenges facing the country. I know people will often say that the quality isnt very good at Primark, but we have invested a lot in quality over the last few years, says Stewart. The company therefore lost half a mark under Anti-Social Finance. As a globalization strategy, Primark carries out its operation in 61 countries. 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. 3 Supply Chain Strategies: Which is Best for Your Business? Primark Business Strategy Analysis - Assignment Desk Mar. Primark regularly visits factories where it holds a lead role in respect to the Accord and is in frequent contact with all other factories which it supplies from. 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. 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. 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. People. In addition, the Irish retailer launched the Pashe Achi Project to ensure compensation recipients retain access to their financial compensation and understand their rights. As Primark does not directly own any of the factories or suppliers it works with, an overall lack of transparency concerning their audit reports can make it hard to ensure their core working principles are constantly being maintained. 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. 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. But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. Primark Stores Limited (/ p r a m r k /; trading as Penneys in the Republic of Ireland) is an Irish multinational fast fashion retailer with headquarters in Dublin, Ireland. It divides the supply chain process into three distinct phases. The value retailer pledged to give both short and long-term financial compensation to those affected by the factory collapse and has paid a total of 14 million dollars to date - 11 million of which has gone to workers and families employed by its supplier, New Waves Bottom. Use of chemical fertilisers were reduced by 40 percent. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. Jobs. 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 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. 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. As these results show, the company is doing well. I think that the information has to be there for the consumer to make an educated choice. 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. 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. 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. But very often union members are threatened or fired for the work they do. Sustainability is a complex issue, stresses Jacinta FitzGerald, Head of Research at Project JUST 3. Primark will strengthen the position of women across its supply chain through skills development and addressing barriers to progression by 2030, by expanding current supply chain training programmes to reach more than half of all female workers by 2025 and 80% by 2030, extending its support for female worker career progression and promotion . Our experience is that transparency often can be among the most difficult requirements for companies that want to do good. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. 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 But this also means consumers are more tempted to buy something without trying it and will be less inclined to return an ill-fitting garment, as it could cost them more in travel costs going back to the store than the actual garment itself. 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. Fashion supply chains tend to be very long and complex, involving thousands of workers across the board. 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. NGOs applaud the move from Primark and agree the retailer should explore further avenues on how it can share more information on its sustainable and ethical programmes. It is a virtual tour. 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 Last financial year, 94 percent of waste generated by all of Primarks stores and warehouses was recycled or beneficially reused, points out Stewart. The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. 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. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. Credit: Primark. We know that as well as ensuring worker rights are protected within the factories we work with, we can positively impact lives outside of the factory too. Credit: FashionUnited. 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. 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. The most difficult requirements for companies that want to share chain process into distinct. Photo: AFP workers within its supply chain leaders can pursue six major Strategies to build greater into... Factory conditions are like for workers in Bangladesh members are threatened or fired the! Know theyll be able to afford a whole outfit ensuring all equipment is properly maintained to share however since! 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