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. As a globalization strategy, Primark carries out its operation in 61 countries. But very often union members are threatened or fired for the work they do. For example, one initiative started by Primark together with Health Enables Returns 3 (HERHealth) and Business for Social Responsibility (BSR) in China, India, Bangladesh and Myanmar aims to educate female garment workers on their health needs and support them in learning. Finally, the issues of supply chain resilience and sustainability are discussed. 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. Our Primark Cares strategy is enabled by and underpinned by five key principles: Our commitment to ethics and human rights through our Code of Conduct and Supply Chain Human Rights Policy. 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. 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 even though Primark may have a number of initiatives in place aimed at improving employee wellbeing, it seems as if the effects of these programmes are not as beneficial or effective for all its workers - in particular its store employees. 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. 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. It can also be used to drive down operational cost and maximize efficiency within your supply chain. Will a Sustainable Future for Agriculture Take Us Underwater? We actively engage with our suppliers, chemical experts, other retailers and organisations to help bring about sustainable change, states Primark in its Corporate Responsibility Report 2016. Bangladesh posters: These posters were created in conjunction with workers, with support from SHEVA NARI O SHISHU KALLYAN KENDRA. 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. 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. . Our members have to share that in yearly public reports, and we assess their performance, which is also published. But what could Primark film to convey its good ethics in simple and clear way? Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. This set of guiding principles is based on the internationally recognised labour standards from the International Labour Organization (ILO) Conventions 3 and the ETIs Base Code. 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. Infographic Living Wage: Clean Clothes Campaign, Tailored wages report 2014. This strategy is pursued by companies selling affordable products across all sectors. 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. This website uses cookies for analytics, advertising and to improve our site. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. They include decision-making and analytical processes that define roadmaps for products, services and market interactions. Primark products are made with respect for people and for the planet. 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. But very often union members are threatened or fired for the work they do. Primark previously kept the details of its suppliers factories private, regarding it as a matter of commercial advantage. 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. "By working closely with Primark and their . 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. 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. Our experience is that transparency often can be among the most difficult requirements for companies that want to do good. Hover your mouse over the photos to learn more. Photo: Workers sewing in Indian Garment Factory. 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. 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. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. However, some worry that confidential worker interviews and audits are not enough to protect vulnerable garment workers. The reason we started our Sustainable Cotton Pilot programme four years ago is because cotton is one of the main fibres we use in our products, and we wanted to achieve greater visibility in our cotton supply chain to better understand how it works, says Katherine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. Its still early days, but its going very wellthe whole process is a journey of understanding. After reaching out to the shoppers who found these letters and labels and conducting its own research, Primark claimed the distress calls were all part of an elaborate hoax looking to sully its name. Publishing more information on its website, training its members of staff and creating behind the scenes videos of the factories it works with, are just a handful of avenues Primark has taken on share what it does in terms of sustainability and social responsibility. But what about Primarks Greenhouse Gas Emissions? However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. "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. For me, its really all about education. 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. 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. 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. 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.. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. 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. 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. According to Associated British Foods Corporate Responsibility Report for 2016 2, Primarks GHG emissions have increased by 15 percent over the last three years. This does not do justice to the hard working garment workers, but into the production of the clothing. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. Transparency for supply chain has always been a critical agenda. 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. Primark employs a total of approximately 4,800 workers in the Netherlands. Photos: Primark Sustainable Cotton Programme. In addition, the Irish retailer launched the Pashe Achi Project to ensure compensation recipients retain access to their financial compensation and understand their rights. In a word, Primark's strategy is working better than its rivals and . Average farmer profit increased 247 percent during its third year. 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 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 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. 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. Photo: Primark Gent opening Belgium via AFP. 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. What certainly has helped over the last two years is there has been more of an appetite to collaborate, says Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. Primark is a member of the Sustainable Apparel Coalition. 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. 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. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. 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. For example, Primark is working on improving its injury rate as part of its wider scheme to boost its safety performance, according to its Corporate Responsibility Report 2016. 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. Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. But the value fashion retailer has yet to explore alternative solutions or set itself fixed goals in reducing its greenhouse gas emissions. Credit: Primark, Photo: Primark store Venlo. All the stock we have in store which we cant sell, all our buying office samples and excess stock, is donated to Newlife. Primark first started working with Newlife in 2010, and since then has managed to generate more than 2 million pounds in donations, which has been used to purchase equipment such as wheelchairs, nurse services and fund medical research. Primark notes it is constantly reviewing its routes, type of vehicles used and shared services to ensure it minimise miles and the resultant emissions as the company expands. Credit: PRIs The World, Video: PRIMARK | Rana Plaza: Kushi Mela. 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. However, store employees in the Netherlands who voiced these concerns are not only ones working at Primark who feel this way. 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. Published 5 years ago. How we collaborate and innovate with our suppliers and partners. 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. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . Why Primark's sustainable cotton push is good for female farmers. Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . Through our Supply Chain modeling and analytics capabilities, we enable fact-based decision making around your supply chain strategy and network (footprint) design that will drive speed, agility and efficiency. 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. And the value retailers efforts have not gone completely unnoticed within the industry. These are: Giving clothes a longer life - We will become a circular and more sustainable business. That is why we have begun to explore how we can better measure what we do so that we might provide more credible and tangible evidence of our impact.. As Primark has also expanded into new regions over the last few years, the retailer has ensured that all its new locations are supported by safety specialists who help uphold its safety standards. 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. Please note, Greenpeace no longer recognized Primark as a Detox Leader, says FitzGerald. So it is important to remember that these flagship stores attract huge amounts of people and we shouldnt get side tracked as to what is looks like across the board., As long as we stimulate seeing clothing as a disposable product instead of an investment, the race to the bottom will continue, Stewart adds Primark has also been investing in creating better quality clothing to help combat the stigma that its offers throw-away clothing and ensure their products last longer. But we do share our supplier information with other partners we are in collaboration with, for example with the Bangladesh Accord 10. "For Primark, the pandemic stopped our only revenue stream in its tracks in an instant," Vanoli explained. 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. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. However, the opposing views on the quality of Primarks clothing does not change the fact that a large percentage of its clothing - as well as that produced by other fast-fashion retailers - ends up going to waste once it is discarded by consumers. When asked on Primarks current opinion on adopting a circular business model, Stewart acknowledges that it is an area the value retailer is exploring, but is not ready to take on as a future goal. The programme helps raise awareness on a wide range of topics, such as the importance of children's education, financial planning, general health and workers rights through the formation of worker education groups. Unlike fast-fashion competitors, such as H&M, who has been extremely open in communicating their sustainable initiatives to the public through campaigns such as Close the Loop, Primark has remained relatively quiet on what it does in terms of sustainability, ethics, and labour rights. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. No matter what your budget, we have a great range of fashion and home accessories at affordable prices. Strong union representation can bring labour violations to light. 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. 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. 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. However, in spite of the numerous initiatives Primark has undertaken to combat its chemical usage, the value retailer may not be able to reach its Detox commitment to Greenpeace by 2020. To be included on the map, factories must have produced products for Primark for at least a year and be an established supplier. 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. 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. . Pursue a living wage for workers in its supply chain. 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. 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. 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. If you think about the cotton project for example, we only started communicating that last year, when we have been working on it for three years. 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. There's no secret. 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. For inorganic growth it made strategic acquisitions. 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. for only $13.00 $11.05/page. 3 Supply Chain Strategies: Which is Best for Your Business? 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. 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. A tight grip on the supply chain is essential in the process. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. 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. Credit: Primark. 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