As a globalization strategy, Primark carries out its operation in 61 countries. The rise of haul style shopping videos on YouTube is just one example of how the value retailers pricing is affecting the way people shop and how they view their products. We want to be able talk about the things we have done and show what results we have achieved. More transparency is needed to verify if the claims being made in Code of Conducts are really true., Primarks approach to due diligence and factory audits, For example in order to ensure that all garment workers understand Primarks Code of Conduct, which can be difficult in countries such as Bangladesh where many workers are illiterate, Primark has developed posters together with local charities. The video, which marks a first for the value retailer, shows what factory conditions are like for workers in Bangladesh. The company's strategy of focusing on six core supply chain principles resulted in performance benefits that really paid off: customer service improved from 97 to 99 per cent, direct customer shipments increased by ten per cent and productivity increased by 30 per cent. 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. The sourcing map features information about Primarks suppliers factories in 31 countries, including the names, addresses, number of workers and gender split of the workforce at each. Its one of our challenges we have to deal with. 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. 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). Primark also runs its Retail Manager Development Programme (RMDP), a bespoke supervisor development programme in the UK and northern Europe and is in the process of rolling it out to its other countries. Business Cards Small to Medium View All Business Cards Basic Business Card Gold Business Card Platinum Business Card Large/Corporate View All Corporate Cards Green Corporate Card Gold Corporate Card Platinum Corporate Card BA Corporate Card BA Plus Corporate Card Payment Solutions 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. 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. What is Primark doing to offer affordable fashion at an amazing price? However, Primarks sustainable cotton programme is not its only initiative in place aimed at empowering and educating its female garment workers. We provide suppliers and their factories with formal training, tools and support to enable improvements to be made throughout the manufacturing process.. Primark also received our worst rating for likely use of tax avoidance strategies. 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 steps Primark is taking to improve garment workers wages. 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. What impact does Primarks Code of Conduct really have? Strategy No. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. 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 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. 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. However for others, like Primark, it was a call to take a closer look at its supply chain and operations to see where it could make even a larger impact through its sustainable and ethical initiatives. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? 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. We would suggest Primark increase its use of sustainable fibres, including developing further sustainable cotton programmes and using recycled fibres, along with tencel and modal instead of the less sustainable viscose fibre, says FitzGerald. 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. 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. The firm's positioning strategy entails the firm as the most cost effective firm in the fashion retail sector in UK. Regarding Primark's China sourcing strategy, on the one hand, Primark sources from as many as 475 suppliers located in China, far more than any other Asian country. However Primark does not tackle its factory audits alone. Although Primark has pledged not to knowingly source cotton from Uzbekistan, it does not seem to have any secure policy in place to guarantee it is not sourcing cotton from there, raising concerns about traceability and transparency within Primarks supply chain once more. Primark has also committed to pursuing a living wage for workers in its global supply chain by 2030. Off-site worker interviews by trusted organizations will more likely reveal the truth than company organized visits.. 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. There's no secret. Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. The clothing must also be recyclable. 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 try to be proactive and helpful partners when it comes to audits, points out Stewart. It currently uses the Cost leadership. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. Primark adopted computerized customs clearance for improving the speed of business operations. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. 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. Prospect Analysis Stores at Primark 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. Primark is a major retail group. 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. 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. It is about sharing how we do it and then moving it to scale. 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. 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. It is a shame that so much hard work of workers worldwide ends up as waste, Tara Scally, Dutch Campaign Coordinator for Clean Clothes Campaign (CCC) 11. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. On their website, under Our Ethics, 8 Primark claims that all factories are inspected and audited. Brands should plan accordingly so no garments go to waste., What Primark is doing to cut down its use of chemicals, Our objective is to have full traceability from all Primark supply chain partners of upstream manufacturing, product and chemical inventory information for every point in the supply chain, Primark also supports the Partnership for Cleaner Textile industry (PaCT) 16, a holistic programme which supports the Bangladesh wet textile processing factories in adopting cleaner production methods. They concentrate on improving the efficiency of supply chain management. Primark's new sustainability strategy includes nine concrete pledges. Design clothes with strengthened durability and to be recycled. 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. 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. Circular economy - we will talk about that when we have something we have done about it., How Primark is improving its workers well-being and educational initiatives. In a new initiative, Primark will: Make clothing from recycled or sustainably sourced materials. Because if you give someone an education, it stays with them and thats sustainable. She stressed that the cotton project focuses on giving farmers a hand up, not a hand down in the form of free seeds, or pesticides or equipment. 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.. 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. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . 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. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. However, even though Primark responded quickly to the allegations and was eager to improve conditions, FNV is aware time will show if working conditions improve and has therefore scheduled a meeting in three months time. 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. Bangladesh posters: These posters were created in conjunction with workers, with support from SHEVA NARI O SHISHU KALLYAN KENDRA. Additionally, other fast fashion brands are researching circularity, where used garments can be returned to the brand, the garment broken down (either mechanically or chemically) and respun into new yarn, then made into a new garment, adds FitzGerald. This pack provides Primark suppliers and potential suppliers with key information and guidance about trading with Primark and how we work with our suppliers. 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. Should Primark be more open with consumers concerning sustainability? Primarks margins are also said to half a high as those of its fast-fashion competitors. Halve carbon emissions across its value chain. Here are six supply-chain strategies designed to help enterprises thrive in the current environment. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. 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. 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. 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. We probably do not realise the full potential of the recycling programme yet, as we have not been advertising it, says Stewart. This is Primark's first 360 degree video. It is mainly sourced from countries like China, India, Pakistan, Turkey, Brazil or the United States. 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. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. Thats why collaborative action is so important. "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 failed to score very high in the first Corporate Human Rights Benchmark 12, the first public ranking of corporate human rights performance. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. 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. 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. But what about Primarks Greenhouse Gas Emissions? This short film shows how Primark's programme in Bangladesh has help provide essential health, hygiene and nutritional education for garment workers. 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. From my point of view, I have seen real change coming through. Fashion supply chains tend to be very long and complex, involving thousands of workers across the board. 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. Cotton is a natural fiber that is grown in warm climates. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. 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. Photo: Workers sewing in Indian Garment Factory. Video: PRIMARK | Farmer Case Study Hirus Story. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. 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. We deliver. Transparency is essential for accountability and credibility, counters Schuurman. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such as Vendor-managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR) are presented. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. Its a bit brutal, considering we do have a lot of future goals, but thats how it is. 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 products are made with respect for people and for the planet. The value retailer pledged to give both short and long-term financial compensation to those affected by the factory collapse and has paid a total of 14 million dollars to date - 11 million of which has gone to workers and families employed by its supplier, New Waves Bottom. Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. At Primark, we are committed to ensuring that the people who make our products work in good conditions, are treated properly and paid a fair wage, says Paul Lister, Head of Primarks Ethical Trading Team in a statement. The move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. 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. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. 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. 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. Many workers take pride in the work they do and the clothing they make and do not deserve to be exploited as they are now. Primark established a strong strategy of cost leader ship. For inorganic growth it made strategic acquisitions. Primark tries to cut down all unessential expenses, reduce wastage, less direct marketing option, so that it can maintain the cost of the product. 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. One brand cannot single handedly reduce overtime or raise wages for the workers who make their clothes, says Lotte Schuurman, Communications Officer at the Fair Wear Foundation. NGOs and trade organisations agree that this, as well as working with trade unions, is key for any fashion retailer in tackling cases of forced labour in developing countries. We would suggest 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. 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. 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. 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. 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. 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. 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. Considering that the majority of Primarks products are made from cotton, we would suggest the brand dramatically increase its initiatives in this area by supporting similar programmes to achieve 100 percent sustainably grown cotton. In fact, the results of the cotton pilot programme were so successful they exceeded all Primark's expectations, which is why the value retailer has expanded the programme to support an additional 10,000 farmers in Gujarat over the next six years. [Sustainability] is not about little capsule collections. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. RECYCLE. 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