Four factors usually influence an organisation's supply chain strategy for the supply chain models they use: Industry. This wasnt a case of us not having the data, we know where our products are made. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. I dont care really, I love this jacket.. 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. It is about sharing how we do it and then moving it to scale. About a 4 minute read. 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. But what about Primarks Greenhouse Gas Emissions? . Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. Infographic Living Wage: Clean Clothes Campaign, Tailored wages report 2014. We also believe Primark could do more to educate its shoppers on how to care for their clothes and encourage them to look after them and keep them for longer.. 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. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. It can help with this initial scoping phase of strategy development. 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. Credit: Primark. Milan, Italy Primark store photo. The company therefore lost half a mark under Anti-Social Finance. 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. Video: PRIMARK | Farmer Case Study Hirus Story. We want to be able talk about the things we have done and show what results we have achieved. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. 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. for only $13.00 $11.05/page. (Black Well). 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. Milan, Italy Primark in-store photo. 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. Get some inspiration for your paper by reading our sample! 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. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. 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. The training focuses on denim and jersey production, paying attention to the environmental impact of the main technologies used during the dyeing and washing processes. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. Primarks buying and merchandising teams in Dublin (Republic of Ireland) and Reading (UK) travel internationally to source and buy fashion items that best reflect each seasons key fashion trends. Will a Sustainable Future for Agriculture Take Us Underwater? 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. 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. I think that the information has to be there for the consumer to make an educated choice. 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. Primark employs a total of approximately 4,800 workers in the Netherlands. 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. Role: Supply Chain Manager - Origin. 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. FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. Brands can work very hard on improving their purchasing practices - on forecasting, on production planning all of which can reduce their risk of causing overtime - but if they are a small player and other brands have poor management practices, the results on the factory floor can still be disappointing. Its a bit brutal, considering we do have a lot of future goals, but thats how it is. 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. Credit: Paul Marotta / GETTY IMAGES NORTH AMERICA / AFP, Video: Primark The Biggest Primark Haul Ive Ever Done. 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. We try to be proactive and helpful partners when it comes to audits, points out Stewart. 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. 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. Our experience is that transparency often can be among the most difficult requirements for companies that want to do good. 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. At the moment Primark does have a few initiatives in place aimed at educating consumers on how to care better for their clothes, such as their partnership with SCAP 8. 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. 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. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . Primark established a strong strategy of cost leader ship. At Primark, we're proud of our low prices. 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 are building things to last. She claims she has had a suedette jacket she is wearing from Primark for years, and that her co-workers have even begun to joke about how often she wears it. 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 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. Halve carbon emissions across its value chain. 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, 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. Wal-Mart's competitive strategy is based on three dimensions: high product availability, a wide variety of goods, and everyday low pricing. Weve always said that we have worked very hard with our suppliers, notes Stewart. For us its about making sure that the people who touch the supply chain, whether its the workers or the communities or the environment we operate in, are looked after.. 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. They concentrate on improving the efficiency of supply chain management. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. Our experts can deliver a Starbucks Company's Supply Chain Management Strategies essay. Primark offers customers quality, up-to-the-minute fashion at value-for-money prices. It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. Consistently providing a wide variety of goods at low prices . 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). Plus, our third-party logistics providers. Primark should focus on building a solid, long-term relationship with their suppliers based on trust; ensuring labour unions are allowed within the factories they source from and are protected enough so they can do their work freely without threats, or harassment, notes Scally. One of our long-term goals is to source all of our cotton more sustainably, says Stewart. 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. . Their cooperation began when Primark had just 15 storestoday, the international fashion retailer has nearly 400 brick-and-mortar stores across 13 countries. Here are six supply-chain strategies designed to help enterprises thrive in the current environment. 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). During the first year a factory has to demonstrate that it . 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. I think that this is something we made a decision on very early on and it gives us the confidence that the audit paints a clear picture of what is going on in that factory at that point in time.. RECYCLE. Bangladesh posters: These posters were created in conjunction with workers, with support from SHEVA NARI O SHISHU KALLYAN KENDRA. "We made a 360 degree video of one of suppliers factories in Bangladesh, says Stewart. 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. Credit: ABF plc. 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. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. 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 addition, 81 percent of respondents said they felt that Primark was missing a workers council who could negotiate agreements on their behalf concerning use of store cameras in relation to their privacy - even though the council is required by law in the Netherlands for any company with more than 50 employees. 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. Brands like Primark should use their power to make sure union members are protected. Scally also encourages Primark to join a multi-stakeholder initiative, like FWF, who can verify what is really happening in the supply chain. 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. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Over in Spain, in Madrid one Primark retail worker claimed he was making the same amount of money working 30 hours a week at Primark in 2016, as he was working 12 hours a week at department store El Corte Ingls in 2007 6. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. 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. For inorganic growth it made strategic acquisitions. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. India currently ranks 130 out of 188 countries in the UNs Gender Inequality Index, as gender equality is seen as one of the most pressing development challenges facing the country. Credit: Zoella. However many consumers still believe that Primark is less ethical than high street rivals H&M, Zara or Mango, which is false according to Primark. The value retailer said it was both quite shocked and moved by the results of FNV online survey and noted that it has been working for several months to launch its workers council. As a business we care about the impact. But I find it more difficult to share what we are doing sustainably because we do not make capsule collections and cant just hang a little label on it. Primark operates using a common set of global standards in all its sourcing hubs, known as its Code of Conduct 2. 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". How we collaborate and innovate with our suppliers and partners. We are trying to look collaboratively as to what best practice looks like to build a framework to offer suppliers a consistent message on how this is the standard, and what implementation looks like. It is commendable that fast fashion companies are reacting to the challenges we face and creating positive intervention towards socially mindful solutions. But is Primark doing enough to boost wages for garment workers? 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. This does not do justice to the hard working garment workers, but into the production of the clothing. There's no secret. This is crucial to achieve the standards we require for workers in our supply chain. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. 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. 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. Primark products are made with respect for people and for the planet. 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. This is Primark's first 360 degree video. 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. 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. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . 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. This is why Primark is developing the communication around everything in terms of ethical and sustainable programmes, to make sure it is as informative and visual as possible for its readers. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. "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 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. "Our continued partnership with Primark as part of this industry-leading programme is materially changing the lives of farmers and their families in rural cotton communities," Ward concluded. It turned out to be such a success that the participating farmers achieved the following results by the third year: This short film follows the impact Primark's Sustainable Cotton Programme has had on female farmers in Northern India and includes interviews with some of the women involved. 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 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." Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. Depending on how consumers respond to the video, Primark may consider creating more - but for now the value retailer is pleased with their first 360 degree video. How a procurement transformation reduced sourcing cycles by 60%. What impact does Primarks Code of Conduct really have? In short, we were looking to decrease the cotton farmers input costs, but increase yield of cotton and income and improve their overall lives and health, continues Stewart. In a word, Primark's strategy is working better than its rivals and . However, the Government of Uzbekistan forces more than a million people 8 to work in the cotton fields each harvesting season and numerous reports highlight cases of human rights violations and forced child labour are rifein Uzbek cotton production. 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. We know consumers and stakeholders are interested and we thought that publishing the Global Sourcing Map was a big step on that journey. The steps Primark is taking to improve garment workers wages. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. 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. 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. 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. 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. Published 5 years ago. This short film shows how I:CO works with retailers to initiate clothing recycling drives in store, and encourages consumers to be more mindful with their unwanted textiles. Rather than giving customers a discount voucher for their next purchase in-store, Primark gave customers an organic cotton bag in return for a clothing donation. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. Sign up for SB Brand-Led Culture Change, best rates expire March 3rd! 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. 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. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. Photo factory via Pexels. We will continue to look at what we feel might be useful or interesting as we continue to develop our program.. Fashion supply chains tend to be very long and complex, involving thousands of workers across the board. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. 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. 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. Having the data, we & # x27 ; s strategy is working better than its rivals and be for... Chain management strategies essay Primark has already begun to train 5,000 new cotton farmers and plans scale. Were created in conjunction with workers, but into the value retailers sustainability and ethical initiatives 4,800. Help with this initial scoping phase of strategy development not having the data, &. 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New cotton farmers and plans to scale this up in time Boohoo, and Forever21 churning out affordable.... Supply-Chain strategies designed to help enterprises thrive in the current environment hit by temporary closures and at! Workers in our supply chain management system multi-stakeholder initiative, like FWF, who can what. Consumer to make sure union members are protected support the statement that Wal-Mart has achieved very good fit.
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