Halve carbon emissions across its value chain. The product strategy and mix in Primark marketing strategy can be explained as follows: Primark is one of the leading retailer brands having multi-brand products available. This includes guidance on onsite environmental health and safety issues, as well as waste and energy management.. 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. For a number of years, weve been working closely with industry partners sharing information about where Primark products are made. 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. [Giving a voucher] just seems a little counter-intuitive in my opinion., Primarks partnership with I:CO is a good example of how collaboration can bring around positive change in terms of sustainability. 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). 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. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. 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. So now we have implemented our Farmer Field School to help them manage their own income and run their own businesses. By offering these female farmers advice and guidance on how they can best manage their income and oversee their cash flow, Primark aims to ensure the cotton workers become financially independent. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . 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. We would suggest Primark increase its use of sustainable fibres, including developing further sustainable cotton programmes and using recycled fibres, along with tencel and modal instead of the less sustainable viscose fibre, says FitzGerald. 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. 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. Sustainable Brands Primark also ensures its suppliers use a streamlined production process to make its clothing in the most effective way possible. Over the years Primark has implemented a series of strategies and initiatives which vary from improving the livelihoods of its garment workers, to reducing its carbon footprint as well its chemical usage, water usage and waste output, to using more sustainable materials. I think that the information has to be there for the consumer to make an educated choice. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. In a factory setting, where the management team usually male dominated, female workers can be pressured to work overtime without pay to reach production targets, or denied the right to maternity or sick leave. To be included on the map, factories must have produced products for Primark for at least a year and be an established supplier. But we do share our supplier information with other partners we are in collaboration with, for example with the Bangladesh Accord 10. Credit: Primark. 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. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. Credit: Primark, Photo: Primark store Venlo. This is of vital importance in countries such as India, Bangladesh and Pakistan where women make up 80 percent of the workforce. 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. 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. As a business we care about the impact. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. 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. But just how reliable is Primarks Code of Conduct? 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. However, Primark does ensure that all its workers undertake an online health and safety induction programme in their local language, at a time and pace which is suitable for them. 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. Transparency is essential for accountability and credibility, counters Schuurman. 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. 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. Average farmer profit increased 247 percent during its third year. Brands should take wages out of the competition and start working together on payment of a living wage, stresses Tara Scally, Dutch Campaign Coordinator Clean Clothes Campaign 11. At Primark, we are committed to ensuring that the people who make our products work in good conditions, are treated properly and paid a fair wage, says Paul Lister, Head of Primarks Ethical Trading Team in a statement. 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. This technology is still in development for the process to work at scale, but there is exciting potential here for a large reduction in garments being sent to landfill, and the decreased use of virgin raw materials. She encourages Primark to start looking into future options for implementing a circular economy, similar to the goal set by rival fast-fashion retailer H&M. It relies on some kind of exploitation, of people or resources. 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. 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. The Gartner Matrix for Supply Chain Strategy offers a construct by which to map supply chain strategy, priorities and interdependencies. 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. The Company has been said to be the biggest Company across Europe with . 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. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . 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. Primarks margins are also said to half a high as those of its fast-fashion competitors. It is about sharing how we do it and then moving it to scale. Should Primark be more open with consumers concerning sustainability? Right from the start, when the buyers are developing the product, we ensure we have the quality team looking at the design of product. 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. 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. 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. As Primark has become more actively involved in the recycling process of its materials, it has been able to significantly reduce the volume and frequency of waste collections at each store and aims to expand this system to additional regions. This wasnt a case of us not having the data, we know where our products are made. Its still early days, but its going very wellthe whole process is a journey of understanding. 26, 2019 2 likes 3,084 views Download Now Download to read offline Education Business Strategy can be termed as various strategic plans designed and improvised in order to achieve business growth.Read this summarized business strategy report to get more information about Primark group The company's strategy of focusing on six core supply chain principles resulted in performance benefits that really paid off: customer service improved from 97 to 99 per cent, direct customer shipments increased by ten per cent and productivity increased by 30 per cent. How a procurement transformation reduced sourcing cycles by 60%. People. Primark products are made with respect for people and for the planet. Unfortunately, Primark does not enclose their supplier list which makes it really hard to verify if what they communicate about their supply chain is actually true, continues Scally. 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. Primark opened it first store in Rotterdam, the Netherlands in 2008. Chief executive George . Photos: Primark Sustainable Cotton Programme. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. They discussed a number of HR-specific trends, including . We try to be proactive and helpful partners when it comes to audits, points out Stewart. But is Primark doing enough to boost wages for garment workers? Primark will continue collaborating with industry experts such as CottonConnect to drive this change. Following the expansion of its Sustainable Cotton Programme, which sees Primark working with CottonConnect and the Self-Employed Womens Association (SEWA) to support over 11,000 female cotton farmers in India, as well as increasing consumer interest in Primarks own sustainable and ethical practices, Primark has decided to become more vocal concerning its commitments to producing responsible fashion. Credit: Pixabay, Video: An introduction to Love Your Clothes. Credit: Primark. 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. "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 . This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. The Central Supply Chain Team is accountable for critical activities like planning, data & analytics, operational excellence, supply chain business systems development and . 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. Primarks sustainable cotton pilot has been applauded by numerous international organisations as it focused on the environmental impact of growing cotton, such as the farmers use of water, chemicals and their effects on soil and aimed to improve cotton production by using less water, less chemicals and less pesticides. When watching the video via a smartphone, the direction of the video will shift depending on the position of the phone - in order to view the full 360 degrees in the video, please physically rotate your smartphone around. Primarks sustainable cotton pilot supported 1,251 female cotton farmers over three years. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. 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. Founded in Ireland in 1969 under the name Penneys. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. Thanks to its energy-efficiency projects, Primarks store energy intensity, which is measured by kilowatt-hour (kWh) per square foot, has been reduced by 11 percent since 2015. For example, back in 2014 and 2015 British shoppers are said to have found letters and hand stitched labels in garments pleading for help, which aimed to raise awareness for the terrible conditions workers were apparently forced to endure. We currently feel that information is competitive intel we do not want to share. Its own in-house teams are supported by independent, third-party auditing companies, which are said to be critical to ensuring Primark upholds its monitoring standards. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. In a word, Primark's strategy is working better than its rivals and . Primark is a member of the Sustainable Apparel Coalition. Strong union representation can bring labour violations to light. Photo: Primark Gent opening Belgium via AFP. Photo: Leipzig - Germany. The reported results show that working with farmers at this level can have a number of positive impacts on yields, chemical and water use reduction and increased income, says Jacinta FitzGerald, Head of Research at Project JUST 2. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. On its website, the value retailer has a dedicated area under its Ethics page which explains how they are able to offer the lowest prices on the high street. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. During the first year a factory has to demonstrate that it . Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. This short film shows how Primark's programme in Bangladesh has help provide essential health, hygiene and nutritional education for garment workers. Primark has been grappling with the best way to tackle this assumption over the past few years. Plus, our third-party logistics providers. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. The steps Primark is taking to improve garment workers wages. Hover your mouse over the photos to learn more. Jobs. 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. For years Primark has been fighting against the stigma that cheap fashion is not sustainable or ethical, even though the value fashion retailer shares 98 percent of its suppliers and factories with other high street retailers, such as H&M, Zara and Mango. 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. 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. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. Credit: Primark. And in Portugal, the retailer is considered a fashion expert. Its suppliers factories. Verification is crowdsourced from the public to ensure that the information remains up-to-date and accurate. 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. SM Insider Current Issue. 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. Credit: Primark. However, although fast-fashion retailers like Primark have been working hard to improve working conditions and dramatically decrease their impact on the environment, in reality they have been unable to match their sales gains with corresponding improvements in terms of the social and environmental aspects. Ethical Consumer considered remuneration over 1 million to be excessive. But how sustainable is Primarks sourced cotton? 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. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . This is crucial to achieve the standards we require for workers in our supply chain. Subsequently, efficient and responsive supply chain strategies are distinguished. 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. 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. 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. 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. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. 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. 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. In August 2017, Bangladesh launched an initiative of its own to map all of its apparel factories. The firm's positioning strategy entails the firm as the most cost effective firm in the fashion retail sector in UK. That's why we work in partnership with global and local experts to help deliver change. Another programme that Primark has had in place since 2009, focuses on enriching the lives of its workers, and sees the value retailer working together with Social Awareness and Voluntary Education 4 (SAVE) to educate its workers in Southern India. 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. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. It is mainly sourced from countries like China, India, Pakistan, Turkey, Brazil or the United States. No matter what your budget, we have a great range of fashion and home accessories at affordable prices. Prospect Analysis Stores at Primark Milan, Italy Primark store photo. Credit: PRIs The World, Video: PRIMARK | Rana Plaza: Kushi Mela. In 2018 Primark executives George Weston and John Bason were paid 3.8m and 2.7m respectively. 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. 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. The clothing must also be recyclable. 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. 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 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. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such. 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. Fair Wear Foundation 12 has done interesting research revealing the possibilities. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. Its one of our challenges we have to deal with. 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. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. The first stage in Primarks supply chain is harvesting the cotton. 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. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. It's basically a strategy used to overview your whole supply chain. The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. 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. Use of chemical pesticides were reduced by 44 percent. 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. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. The value retailer states it is targeting efforts in certain countries where national safety standards differ from its own standards, but does not outline in detail which countries it is focusing on at the moment. At Primark, we're proud of our low prices. 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. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . 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 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 . 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