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Primark operates using a common set of global standards in all its sourcing hubs, known as its Code of Conduct 2. 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. However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. 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. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. Some factories need help improving certain areas, so we make sure we work together with them by explaining the implications and solutions on the audit checklist. Primark also runs an online supplier management system which offers training programmes on how suppliers can improve their working standards. According to WRAP, approximately 140 million pounds worth of used clothing is sent to landfills in the UK each year - accounting for 30 percent of consumers unwanted clothing. 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. From my point of view, I have seen real change coming through. We pay for all our audits ourselves as well, adds Stewart. 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. It operates stores in the UK, Republic of Ireland, Spain, Portugal, Germany, the Netherlands, Belgium, Austria, France, Italy and the US, directly employing 68,000 people. When watching the video via a desktop computer, or laptop, please use your mouse to virtually 'look' around the space. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. But now our customers are asking us about it, so we are talking about it moreespecially now that our customers are getting older, they want to know more. 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. 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. What we see on the social side, is that everyone has very similar Codes of Conduct, but various degrees of implementation - which makes it harder for everyone.. We suggest Primark share more data with its shoppers concerning the workers that make its clothing, and show how the brand is working to ensure they are treated ethically, so shoppers can see first hand the stories behind their clothes, says Jacinta FitzGerald, Head of Research at Project JUST 7. Origin coordination is critical with factories and suppliers. To date over 800 female workers have been coached and they in turn have taught more than 20,000 women. The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. Evolving Business Needs. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. 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. 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. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. But very often union members are threatened or fired for the work they do. In addition, Primark failed to score very high in the first Corporate Human Rights Benchmark 12, the first public ranking of corporate human rights performance. 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. 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. 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. 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). It shows how the company has managed to embrace technology to deliver its products to customers in real time. 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. Strong union representation can bring labour violations to light. We deliver. Pursue a living wage for workers in its supply chain. 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. Primark currently counts 16 stores across the country, including its flagship store in Amsterdam. What is Primark doing to offer affordable fashion at an amazing price? "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. In August 2017, Bangladesh launched an initiative of its own to map all of its apparel factories. The ERICC system offers real-time information on the primary energy drivers within any store and indicates how a store should be performing from an energy management point of view. But what about Primarks Greenhouse Gas Emissions? We will be putting a lot more information concerning our ethics on there come May, continues Stewart. 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 took centre stage during the event and notably, management went into detail on the price-points of Primark's goods and how they were able to keep them so low. Yet it is also a challenge for garment and textile companies, who consider their competitive advantage to lie partially in their unique supply chain decisions for example, where they are placing orders, prices paid and forecasting. These audits, which can be announced before hand or not, include confidential worker interviews. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . Primark is a major retail group. . Primark launches jeans with . 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. Here are six supply-chain strategies designed to help enterprises thrive in the current environment. But how responsible are Primarks in-store working conditions? In order for Primark, or any fast fashion brand, to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs. When companies discount to shift stock, margins are compromised. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . 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. 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. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. We are often asked how we can combine low prices with good standards in the supply chain. However, some worry that confidential worker interviews and audits are not enough to protect vulnerable garment workers. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. Primark Business Strategy Analysis - Assignment Desk Mar. But for us it's all about making fashion affordable at a value people can afford. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. We have to find a way of explaining to the customer not to make that assumption, as price is not an indication of good or bad ethics. Working with supplier factories through its Ethical Trade program and having in-country teams analyzing payroll data is part of the company's strategy, as well as following fair purchasing practices. Credit: Primark. 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. 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. Credit: Primark, Video: Bank Accounts for Workers. Primark established a strong strategy of cost leader ship. Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. Can Primark really offer responsible fashion at an amazing price? Work is in the early stages, notes Stewart, so it has yet to be seen what, if any achievable impact, the initiative has on the wages of garment workers. This wasnt a case of us not having the data, we know where our products are made. 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. Skip to main content Skip to navigation hot-topics Trending Four-day week As a business we care about the impact. How a procurement transformation reduced sourcing cycles by 60%. Primark is a member of the Sustainable Apparel Coalition. 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. But in order to properly tackle many consumers perception and predisposed disposition against Primark and its products, the value fashion retailer may have to dig a little deeper. 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. The Central Supply Chain Team is accountable for critical activities like planning, data & analytics, operational excellence, supply chain business systems development and . 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. 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. 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. In order for Primark to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs, Although Primark has been transparent with its energy efficiency and waste management, it is clear the value retailer still has some ways to go to ensuring both its supply chain and vast store network become more sustainable. 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. But we do share our supplier information with other partners we are in collaboration with, for example with the Bangladesh Accord 10. 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. Credit: Love Your Clothes, Video: I:CO | RETHINK. Video: PRIMARK | Farmer Case Study Hirus Story. 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. 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. Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. 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. Our experience is that transparency often can be among the most difficult requirements for companies that want to do good. What impact does Primarks Code of Conduct really have? The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. 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. 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. 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. Verification is crowdsourced from the public to ensure that the information remains up-to-date and accurate. As of FY2016 it operated 325 stores in 11 countries - Primark does not have an online store. We do share information on which countries we are sourcing from with the public, but not specific factories., Primarks battle against modern day slavery in its supply chains, Rather than cutting ties with suppliers who do employ vulnerable refugees, Primark works with suppliers and local partners to help them get papers for legal employment and proper payment. There is pressure from outside organisations to set targets as soon as counting begins. 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. 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. 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. We have to find a more holistic way to share what we do., We have to find a more holistic way to share what we do. 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. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. Fair Wear Foundation 12 has done interesting research revealing the possibilities. 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. Primark Stores Limited has devised an effective market positioning strategy. Hover your mouse over the photos to learn more. Design clothes with strengthened durability and to be recycled. Photo: Primark Gent opening Belgium via AFP. 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. Primark opened it first store in Rotterdam, the Netherlands in 2008. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. Since the surveys results were published 3 Primark has met with FNV and agreed to make a number of changes to improve working conditions for staff, including respecting employee privacy, improved procedures for holiday leave, and the establishment of a workers council. Primark is committed to reducing the impact of our operations on the environment and has implemented a number of sustainability initiatives across the business, including environmental health and safety audits, energy audits, central building management system to optimize energy consumption, LED lighting, extensive employee training, extended producer responsibility measures and waste recycling programmes, explains Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. : the garment industry in primark supply chain strategy | primark 2014. credit: primark, video: primark | Farmer Study! As best we can combine low prices with good standards in all its stores and reviews how energy. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within workplace... Sac ) for improving environmental and ethical impact on their supply chain strategy growing! 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