Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. This wasnt a case of us not having the data, we know where our products are made. 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. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. As of FY2016 it operated 325 stores in 11 countries - Primark does not have an online store. This is of vital importance in countries such as India, Bangladesh and Pakistan where women make up 80 percent of the workforce. Primark is a member of the Sustainable Apparel Coalition. But how sustainable is Primarks sourced cotton? On April 24, 2013 a building housing five garment factories which manufactured products for approximately 28 brands, collapsed in near Dhaka, Bangladesh, claiming the lives of 1,138 workers and injuring more than 2,000 individuals. 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. 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. Video: PRIMARK | Farmer Case Study Hirus Story. 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. Credit: Primark. SM Insider Current Issue. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? However, some worry that confidential worker interviews and audits are not enough to protect vulnerable garment workers. 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. Our Environmental Policy, which sits within our Code of Conduct. The move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. 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. Photo: Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. 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. 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. In addition to signing onto the Bangladesh Accord, the company has developed a Sustainable Cotton Program and as a member of the Zero Discharge of Hazardous Chemicals (ZDHC) Program has committed to phasing out the use of certain chemicals in its supply chain by 2020. DRFM-B will be guided by a multi-stakeholder Project Advisory Committee, including representatives of workers, NGOs, employers and industry associations. Credit: Love Your Clothes, Video: I:CO | RETHINK. Skip to main content Skip to navigation hot-topics Trending Four-day week At the moment Primark does not purchase any raw cotton directly from farmers, as it does not directly own any mills or factories. In total 6,279 workers in 436 groups have been trained through the programme since 2009, which has impacted the lives of approximately 30,000 garment workers. Primark currently counts 16 stores across the country, including its flagship store in Amsterdam. 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. Photo: Amsterdam Flagshipstore. Primark tries to cut down all unessential expenses, reduce wastage, less direct marketing option, so that it can maintain the cost of the product. Design clothes with strengthened durability and to be recycled. Purpose of role: The role is critical to ensuring Primark can plan and execute an on time and in full departure of all our stock, with the contracted suppliers within the lead times agreed to the business. This website uses cookies for analytics, advertising and to improve our site. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. But for us it's all about making fashion affordable at a value people can afford. Primark is having to explain itself also to the Ethical Trading Initiative (ETI), the UK body set up to improve supply chain working conditions, which it joined in 2006. 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. 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. Halve carbon emissions across its value chain. What steps Primark has taken to become more responsible following Rana Plaza. But is Primark doing enough? The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the companys supply chain. How transparent is Primarks supply chain? 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. 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. In addition, Primark launched a wellbeing programme in its head office in Dublin in July 2015, which currently offers 20 classes a week in its own exercise studio. Where possible we encourage our members and all other garment brands- to increase leverage. Can Primark really offer responsible fashion at an amazing price? But very often union members are threatened or fired for the work they do. 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's first U.S. store launches September 10th in Boston's iconic Burnham Building, Downtown Crossing, with a second store opening planned in King of Prussia in November. May 4, 2022 Primark is one of the first brands that come to mind in fast fashion. The clothing must also be recyclable. In the video Zoella shows off each item one by one to her viewers: young, impressionable women who all want to look and dress just like her - which leads to many of them also shopping in bulk at Primark. A supply chain strategy is a process that manages networks and services between suppliers and companies without causing friction. 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. 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. Primark operates using a common set of global standards in all its sourcing hubs, known as its Code of Conduct 2. 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. 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. 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. We pay for all our audits ourselves as well, adds Stewart. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How 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. 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. It shows how the company has managed to embrace technology to deliver its products to customers in real time. Until there is a general understanding that we all need to slow down and redress this industry, all initiatives, however welcome, however innovative, are just covering the problem, not solving it. Case study on Primark sustainability, ethics, supply chain. 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. 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. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. A quick Google search shows exactly how fast Primark haul videos are growing in popularity - with 3.63 million results showing up for Primark haul 2017 versus 2.95 million hits for Primark haul 2016. Many of these videos attract millions of views - for instance YouTube favourite Zoellas latest Primark Haul, entitled The Biggest Primark Haul I've Ever Done, was uploaded on March 21, 2017 and already counts over 2.6 millions views. It can help with this initial scoping phase of strategy development. For example Primark has partnered with numerous NGOs, such as Solidaridad, CottonConnect and Made-By, as well as organisations like The Ethical Trading Initiative (ETI) 1 and together has instigated many initiatives aimed at improving the livelihoods, health and safety of its workers. 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. We are starting to share more films - our cotton film is a good example of that - but we are trying to make it more engaging and interesting for customers based on the feedback we get and offer as much information as possible." 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. Credit: FashionUnited. 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. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. Credit: Primark. Since the global emergence of fast-fashion retailers like Primark back in 2000, the number of garments produced annually has doubled, exceeding 100 billion garments in 2014 - which is equal to nearly 14 items of clothing for every person on earth according to data from McKinsey & Company 3. It is hard to resist the allure of a good bargain, but fast fashion means were consuming and trashing fashion at a higher rate than our planet can handle, warns Kirsten Brodde, head of Greenpeaces Detox My Fashion campaign 11 in a statement. In the supply chain strategy you are going to plan out how you are going to work with distributors, customers and suppliers. Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. The initiative is called Treadler and the company hopes that collaboration will help build collective knowledge in the fashion industry. 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. 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. We'll assume you're ok with this, but you can opt-out if you wish. One of the many places that Primark gets its cotton from is Gujarat in India. Primark is part of the Better Work programme and a full member of ETI - all positive initiatives which can contribute to better labour conditions. Weve always said that we have worked very hard with our suppliers, notes Stewart. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. At the moment Primark has a team of over 80 experts dedicated to sustainability, ethical fashion and worker training as part of their Ethical Trade Team. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. In England, Primark is seen as a discounter. This is crucial to achieve the standards we require for workers in our supply chain. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. Primark is a major retail group. 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. The Company has been said to be the biggest Company across Europe with . 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 Will a Sustainable Future for Agriculture Take Us Underwater? The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. Primark established a strong strategy of cost leader ship. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. 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. There were a number of brands before who did not want to collaborate. (Black Well). 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 has saved approximately 30 million kWh of energy through its bespoke software system called ERICC (Energy Reduction Information and Control Console). 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. By paying for their own audit Primark is able to ensure the integrity of the audit is not influenced by any external factors and gain a clear picture of actual working conditions. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. It was also one of the first to ensure the factory victims and families affected by the collapse receive financial support and food aid immediately following the disaster. Its still early days, but its going very wellthe whole process is a journey of understanding. Credit: Primark, Video: Primark HERproject. Primark launches jeans with . 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. The firm's positioning strategy entails the firm as the most cost effective firm in the fashion retail sector in UK. I just think its incredibly insightful because it follows the lifecycle of a product, from the cutting room all the way through the factory floor. Primark has shared the video on their website, under their Ethics section as consumers often requested what a supplier factory from the value retailer looks like. For example, if an audit finds that factory workers are working more than the allowed overtime per week, Primark will work together with the factory managers to create a more flexible schedule, giving workers less overtime. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. About a 4 minute read. 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. Partners have extended from bodies such as the Ethical Trading Initiative to organizations monitoring industry standards, notably the International Labor Organizations Better Work program.. Credit: ABF plc. Implemented by Dhakas BRAC Universitys Center for Entrepreneurship Development in collaboration with BRAC USA, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and C&A Foundation, the Digital RMG Factory Mapping in Bangladesh (DRFM-B) project is the first of its kind to attempt to digitally map the entire garment industry in Bangladesh and marks a critical industry shift toward more transparency. We currently feel that information is competitive intel we do not want to share. 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. Whether its financial literacy, health education or helping workers understand their rights, weve seen that simple initiatives with local partners can make a huge difference., What Primark is doing to improve the lives & wages of its garment workers. 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. 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. Credit: PRIs The World, Video: PRIMARK | Rana Plaza: Kushi Mela. Our members have to share that in yearly public reports, and we assess their performance, which is also published. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. 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. Cotton for us is a priority given the amount we use. REWARD. 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. 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. 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. Photo: Workers sewing in Indian Garment Factory. 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. Now headquartered in Massachusetts, USA, it has a global revenue of 7bn. 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. 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. 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. Taking into consideration fast-fashions current business model, which is focused on high volume, low price and disposable products, this cannot by definition nor intention, go hand in hand with sustainability, she adds. "The Primark Carton Optimisation Programme has contributed greatly to removing waste from our supply chain, allowing for reductions in CO2 emissions as a result of less packaging being produced, transported and processed as waste." The 24th Supply Chain Excellence Awards will take place on 12 November 2020. 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. [Sustainability] is not about little capsule collections. Full-year operating profits at Primark are expected to be ahead of last year's 1bn, as the retail chain benefited from "a significant reduction in store labour costs and lower store operating. In the States we set up a similar model with an organisation called KIDS Fashion Delivers 9. All of Primarks stores in the US have been donating their excess stock to the non-profit organisation since 2015, which goes to those in need in 50 states throughout America. 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). for only $13.00 $11.05/page. 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. Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. Get some inspiration for your paper by reading our sample! 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. 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. Primark offers customers quality, up-to-the-minute fashion at value-for-money prices. The value retailer disagrees with this opinion, as Stewart says Primark has invested a lot in improving the quality of its garments over the last few years. 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. Credit: Primark. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. Milan, Italy Primark in-store photo. 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". 95% of our manufacturers are based in Italy. The Central Supply Chain Team is accountable for critical activities like planning, data & analytics, operational excellence, supply chain business systems development and . Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. 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. According to the ranking, the large majority of the low performing companies , which includes ABF, are falling overwhelmingly behind, with all the dangers for human rights abuse of workers and communities that this implies., But these rankings have not discouraged Primark from looking for new ways to improve the wellbeing of its garment workers in developing markets. 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. This strategy is pursued by companies selling affordable products across all sectors. Strong union representation can bring labour violations to light. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. Their sales grew 4 percent compared to last year and both their. 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.. Although it is grown on large-scale industrial farms in certain regions, in most cases the cotton used to make textiles and apparel comes from small farms in low-income countries, such as India, China and Pakistan. 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. But with 98 percent of its factories also manufacturing products for other brands several of whom have begun to publish the details of their sourcing practices the company felt the time was right to share this information. However, this boost in income also brought on a new set of concerns for the female cotton farmers who participate in the pilot, as they were not used to managing a large cash flow. 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. 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. Understanding the environment, market shifts and analysing strategy, competitive advantage and the economy will allow Primark to maintain their large market share and position as the largest retailer in the UK (ABF, 2016). For example, Primark established a resource recovery unit in its German depot centre in July 2015, where cardboard, plastic and hangers are collected from its Northern European stores to be reprocessed and sent for recycling. The value retailer has had a similar system in place in the UK for a number of years now, which ensures all recyclables are collected from its stores via its delivery trucks and transported back to the central distribution centre. . Primark has been grappling with the best way to tackle this assumption over the past few years. We know consumers and stakeholders are interested and we thought that publishing the Global Sourcing Map was a big step on that journey. In a word, Primark's strategy is working better than its rivals and . , supply chain includes both internal facilities that are owned and directly managed by trusted.! Priority given the amount we use hopes that collaboration will help build collective knowledge in the States we set a!, since then there have been no further updates or concrete outcomes on record of exactly.: CO | RETHINK, Primarks Director of Ethical Trade & Environmental sustainability get some inspiration for Your paper reading... Fnv in a statement to increase leverage been grappling with the best way to tackle this assumption over the few... Tactic has enabled the budget fashion giant to multiply its store openings without saturating its for! Prices are also more likely to trigger consumers into making an impulse purchase store. About making fashion affordable at a value people can afford the Global Sourcing Map allows consumers to access about... 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