Should Primark be more open with consumers concerning sustainability? Credit: FashionUnited. 26, 2019 2 likes 3,084 views Download Now Download to read offline Education Business Strategy can be termed as various strategic plans designed and improvised in order to achieve business growth.Read this summarized business strategy report to get more information about Primark group Crafting and Executing Strategy . 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. In doing these things well we know we contribute to making millions of people's lives better," says George Weston, Chief Executive Officer of Associated British Foods, parent company of Primark in ABF 2016 Corporate Responsibility Update. 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. However, store employees in the Netherlands who voiced these concerns are not only ones working at Primark who feel this way. 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. The initiative is called Treadler and the company hopes that collaboration will help build collective knowledge in the fashion industry. Primark also consulted with workers to ensure the posters were displayed in the best possible areas throughout the factories for maximum impact. 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). 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. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. By sharing our supplier base information it enables the Accord to map all the factories that everyone is using in the region as effectively as possible. 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. There are some new collaborations now coming through which could have a real impactful change. As Primark has made sure its five pillars of corporate responsibility have become an integrated part of the company, its Sustainable Cotton Programme has become a prime example of how such an initiative can positively impact both workers livelihoods, as well as the retailers cotton products - even if they do not directly own any farms. 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. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. Circularity addresses the problem of increased consumption and disposal of limited resources. Primark, a member of the Sustainable Apparel Coalition, has developed a new online tool that is helping usher in a new era of transparency for the retailer. Managing risk and governance by ensuring policies, processes and . (Black Well). Unlike some fashion retailers, Primark does not publicly share its audit reports, which raises numerous questions on what exactly Primark is doing to ensure the rights of its garment workers are protected. 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. Strong union representation can bring labour violations to light. Cotton for us is a priority given the amount we use. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. Video: PRIMARK | Farmer Case Study Hirus Story. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. 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. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Primark will strengthen the position of women across its supply chain through skills development and addressing barriers to progression by 2030, by expanding current supply chain training programmes to reach more than half of all female workers by 2025 and 80% by 2030, extending its support for female worker career progression and promotion . 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. I believe it is more important to show, as transparently as possible, proof of the good we have already done, than to set a target of what we may do in the future, However, others disagree and argue transparency, as well as setting targets, are still not enough to make a real difference. This includes guidance on onsite environmental health and safety issues, as well as waste and energy management.. I think that the information has to be there for the consumer to make an educated choice. 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. It currently uses the Cost leadership. 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. For a number of years, weve been working closely with industry partners sharing information about where Primark products are made. The Company has been said to be the biggest Company across Europe with . In England, Primark is seen as a discounter. Prospect Analysis Stores at Primark Please note, Greenpeace no longer recognized Primark as a Detox Leader, says FitzGerald. 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: Primark, Photo: Primark store Venlo. That way they know what to focus on and we can protect certain parts, such as the confidentiality interviews, explains Stewart. At Primark, we are committed more than ever, to . What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? What is Primark doing to offer affordable fashion at an amazing price? Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. Use of chemical fertilisers were reduced by 40 percent. 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). 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 . 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. It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. 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. 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.. 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. 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 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. The ranking awarded Primark points for having appropriate policies in place against excessive overtime, forced labour and child labour, but did not award any points to Primark later on, as they did not take sufficient action against alleged impacts of these issues. Our engagement with . Role: Supply Chain Manager - Origin. Weve always said that we have worked very hard with our suppliers, notes Stewart. 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. Unfortunately, Primark does not enclose their supplier list which makes it really hard to verify if what they communicate about their supply chain is actually true, continues Scally. But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. Transparency is essential for accountability and credibility, counters Schuurman. For example, back in 2014 and 2015 British shoppers are said to have found letters and hand stitched labels in garments pleading for help, which aimed to raise awareness for the terrible conditions workers were apparently forced to endure. Why Primark's sustainable cotton push is good for female farmers. 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. Now headquartered in Massachusetts, USA, it has a global revenue of 7bn. 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. 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. 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. It can also be used to drive down operational cost and maximize efficiency within your supply chain. 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. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. 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. 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. 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. Credit: Primark. There were a number of brands before who did not want to collaborate. 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. 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. "We made a 360 degree video of one of suppliers factories in Bangladesh, says Stewart. Milan, Italy Primark store photo. 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. They include decision-making and analytical processes that define roadmaps for products, services and market interactions. The Gartner Matrix for Supply Chain Strategy offers a construct by which to map supply chain strategy, priorities and interdependencies. I think the one thing I would say is that it depends where you live. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. 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. Strong union representation can bring labour violations to light. 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. This plan ensures that every phase of the supply chain is optimised through supply chain excellence, including the sourcing of materials, manufacturing, delivery, and logistics management. The company therefore lost half a mark under Anti-Social Finance. 1: Inventory and capacity buffers Buffer capacity is the most straightforward way to enhance resilience, whether in the form of underutilized production facilities or inventory in excess of safety stock requirements. We are often asked how we can combine low prices with good standards in the supply chain. A supply chain strategy is the overarching plan that an organization uses to manage the flow of goods and services, from sourcing raw materials to delivering products to customers. In a new initiative, Primark will: Make clothing from recycled or sustainably sourced materials. 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. Photo: Amsterdam Flagshipstore. 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. However, Primarks sustainable cotton programme is not its only initiative in place aimed at empowering and educating its female garment workers. But very often union members are threatened or fired for the work they do. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such. Last week, on January 17 2019, Primark announced its Q1 results to January 5. Credit: Primark. Partners have extended from bodies such as the Ethical Trading Initiative to organizations monitoring industry standards, notably the International Labor Organizations Better Work program.. Its one of our challenges we have to deal with. Credit: Primark. Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. 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 probably do not realise the full potential of the recycling programme yet, as we have not been advertising it, says Stewart. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. We want to be able talk about the things we have done and show what results we have achieved. It divides the supply chain process into three distinct phases. 3 Supply Chain Strategies: Which is Best for Your Business? Photo: Primark Gent opening Belgium via AFP. Origin coordination is critical with factories and suppliers. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. 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. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. In 2018 Primark executives George Weston and John Bason were paid 3.8m and 2.7m respectively. 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. This strategy is pursued by companies selling affordable products across all sectors. 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 Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. Degree video of one of suppliers factories in Bangladesh, says FitzGerald Leader, says Stewart Analysis... 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