Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. Primark has also committed to pursuing a living wage for workers in its global supply chain by 2030. 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. 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. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. 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. 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: Love Your Clothes, Video: I:CO | RETHINK. But there is still a lot to do in this regard., One of the reasons Primark does not intend to publicly share the names of all their suppliers is precisely because of their competitive edge. "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. 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. Credit: Primark, Photo: Primark store Venlo. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . 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. Primark opened it first store in Rotterdam, the Netherlands in 2008. In 2018 Primark executives George Weston and John Bason were paid 3.8m and 2.7m respectively. Credit: Primark, Video: Bank Accounts for Workers. From what Ive seen is they are grading their factories based on their own audits. We are looking at it. Primarks expansive product range includes womenswear, lingerie, childrenswear, menswear, footwear, accessories, beauty, hosiery and homeware. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. 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. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. In these regions a lot of the knowledge concerning the best practices for growing cotton, as well as the most environmental friendly tactics available to do so, tends to be rather limited. Primark's first U.S. store launches September 10th in Boston's iconic Burnham Building, Downtown Crossing, with a second store opening planned in King of Prussia in November. 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. One of the many places that Primark gets its cotton from is Gujarat in India. Following the tragic collapse of Rana Plaza, the most deadly accident in the history of the garment industry, more and more people begun to question how a t-shirt costing as little as 2 pounds could ever be responsibly made. These teams based in its nine key sourcing locations, such as China, India, Bangladesh and Turkey, act as the retailer's "eyes and ears on the ground," according to Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. Its not something new, its business as usual and we have been doing it for a very long time. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. 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. 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. NGOs applaud the move from Primark and agree the retailer should explore further avenues on how it can share more information on its sustainable and ethical programmes. An Ireland-based retailer of value clothing, Primark operates in 14 countries and owns around 400 stores. Credit: Primark. Since the global emergence of fast-fashion retailers like Primark back in 2000, the number of garments produced annually has doubled, exceeding 100 billion garments in 2014 - which is equal to nearly 14 items of clothing for every person on earth according to data from McKinsey & Company 3. 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. 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. 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. "We made a 360 degree video of one of suppliers factories in Bangladesh, says Stewart. Sustainable Brands Design clothes with strengthened durability and to be recycled. 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. 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. 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. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. Use of chemical fertilisers were reduced by 40 percent. 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. Without confidential worker interviews, many of these workers who fear losing their jobs - usually their only means of an income - may never share their real working experience with suppliers clients. 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. One of our long-term goals is to source all of our cotton more sustainably, says Stewart. In August 2017, Bangladesh launched an initiative of its own to map all of its apparel factories. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Company value proposition. Does Primarks Low Prices equal Low Quality and Disposable Fashion? [Sustainability] is not about little capsule collections. 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.. Published Feb 16, 2018 4am EST / 1am PST / 9am GMT / 10am CET. In the States we set up a similar model with an organisation called KIDS Fashion Delivers 9. All of Primarks stores in the US have been donating their excess stock to the non-profit organisation since 2015, which goes to those in need in 50 states throughout America. 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. Prospect Analysis Stores at Primark We are all quite focused on the flagship stores, where you see people coming out of Primark with piles of bags. 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. Transparency is essential for accountability and credibility, counters Schuurman. Now headquartered in Massachusetts, USA, it has a global revenue of 7bn. However, Primark does ensure that all its workers undertake an online health and safety induction programme in their local language, at a time and pace which is suitable for them. Sign up for SB Brand-Led Culture Change, best rates expire March 3rd! What we see on the social side, is that everyone has very similar Codes of Conduct, but various degrees of implementation - which makes it harder for everyone.. 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 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. Credit: FashionUnited. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . Plus, our third-party logistics providers. 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. Credit: Primark. 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. 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. Credit: Primark. Photo: Amsterdam Flagshipstore. This pack provides Primark suppliers and potential suppliers with key information and guidance about trading with Primark and how we work with our suppliers. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the companys supply chain. 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. 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. Its a bit like the chicken and egg conundrum isnt it?, says Stewart on sharing more on their corporate responsibility practices. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . 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. The value retailer has had a similar system in place in the UK for a number of years now, which ensures all recyclables are collected from its stores via its delivery trucks and transported back to the central distribution centre. 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. Our reason for doing so is to control and retain the integrity of them. Usually suppliers contact an external party of their own choosing when conducting a factory audit. FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. Strategy No. But now, we are all sharing factories and therefore human rights has to be a prerequisite for us, as it should be for all., Although some may argue that not a lot seems to have changed within the fashion industry concerning the lives and rights garment workers since Rana Plaza, Steward disagrees. But how responsible are Primarks in-store working conditions? Halve carbon emissions across its value chain. 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. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. Thanks to its energy-efficiency projects, Primarks store energy intensity, which is measured by kilowatt-hour (kWh) per square foot, has been reduced by 11 percent since 2015. 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. Our members have to share that in yearly public reports, and we assess their performance, which is also published. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. 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. 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. 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. 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. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the company's supply chain. "For Primark, the pandemic stopped our only revenue stream in its tracks in an instant," Vanoli explained. Credit: JASPER JACOBS / BELGA MAG / BELGA, Photo: Primark Boston. In France, employees also complained of difficult working conditions in Primark, with complaints ranging from unpaid sick leave, to constant monitoring, to unexplainable gaps between sales assistants' wages 5. What is Primark doing to offer affordable fashion at an amazing price? These complaints from the UK have come even after Primark implemented the national living wage 4, which aims to ensure its workers are paid enough to live off of. For me, its really all about education. How we collaborate and innovate with our suppliers and partners. Primark has saved approximately 30 million kWh of energy through its bespoke software system called ERICC (Energy Reduction Information and Control Console). It used to be about slashing prices simply to shift stock and push sales, but this model has shifted. There's no secret. 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. However, in order to reach its goal of creating clothing with the least amount of harm done to the environment, the value retailer should be looking into additional avenues to increase its use of sustainable resources, as well as its use of recycled materials. 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. It's really interesting and been very helpful for when we have been giving school talks or teaching at colleges, adds Stewart. Primark has published the results of their sustainable cotton programme on their website, as well as personal stories from the farmers themselves, but Stewart admits the company is still learning on how to take what they have learned from the pilot all the way through to end production to bring it to scale. . But Primarks ethical and sustainable initiatives go much further than Rana Plaza. 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. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. Since the surveys results were published 3 Primark has met with FNV and agreed to make a number of changes to improve working conditions for staff, including respecting employee privacy, improved procedures for holiday leave, and the establishment of a workers council. 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. Until recently that is. 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. But very often union members are threatened or fired for the work they do. For inorganic growth it made strategic acquisitions. The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. 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. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . This written down reality says nothing about what is really happening within the supply chain. 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. Lastly, Primark also tighten its programme of structural surveys in Bangladesh to assess the structural integrity of the factories from which it sources from. The value retailer believes that collaboration is one of the keys to improving environmental standards and working conditions across the industry in main manufacturing hubs. 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. Credit: Paul Marotta / GETTY IMAGES NORTH AMERICA / AFP, Video: Primark The Biggest Primark Haul Ive Ever Done. 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. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. It divides the supply chain process into three distinct phases. Acting as an agent and intermediary between banks and customers, Geosansar and Primark have aided workers in opening a bank account for the first time. We'll assume you're ok with this, but you can opt-out if you wish. 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. The Penneys brand is not used outside of Ireland because it is owned elsewhere by American retailer J. C. Penney. This short film shows how Primark's programme in Bangladesh has help provide essential health, hygiene and nutritional education for garment workers. However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. Hover your mouse over the photos to learn more. Photo: Workers sewing in Indian Garment Factory. Case study on Primark sustainability, ethics, supply chain. Primark will then follow up with the factory in question at a later date, either through a pre-announced check or a spot-check, to ensure the issues have been handled effectively. Finally, the issues of supply chain resilience and sustainability are discussed. But for us it's all about making fashion affordable at a value people can afford. When watching the video via a desktop computer, or laptop, please use your mouse to virtually 'look' around the space. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . From my point of view, I have seen real change coming through. There were a number of brands before who did not want to collaborate. At the Workday Elevate Digital Experience 2021 in the UK, Mark Judd, vice president of product strategy, EMEA, at Workday, spoke to Lorraine Culligan, group director of people and culture, and Ian Lynch, head of people systems at Primark, a fashion retailer headquartered in Dublin. No matter what your budget, we have a great range of fashion and home accessories at affordable prices. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. 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. Why Primark's sustainable cotton push is good for female farmers. 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 provide suppliers and their factories with formal training, tools and support to enable improvements to be made throughout the manufacturing process.. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How . But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. 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 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 business we care about the impact. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit, [But] I do not think we are actively encouraging people to buy more than they need with our low prices, we are providing affordable fashion, argues Stewart. 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. Transparency for supply chain has always been a critical agenda. 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. We will continue to look at what we feel might be useful or interesting as we continue to develop our program.. Primark previously kept the details of its suppliers factories private, regarding it as a matter of commercial advantage. 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. 3 Supply Chain Strategies: Which is Best for Your Business? 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. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. The team works together to make sure each location is fully compliant with the regulatory requirements and that the value retailer continues to meet accepted good practices within the retail industry. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. And in Portugal, the retailer is considered a fashion expert. An amazing price software system called ERICC ( energy Reduction information and about... And sustainable initiatives go much further than Rana Plaza energy each store consumes KIDS fashion Delivers 9 first in. 'Look ' around the space it first store in Rotterdam, the Netherlands in 2008 allows consumers to information! / 1am PST / 9am GMT / 10am CET down reality says nothing what... All its stores and reviews how much energy each store consumes has enabled the budget giant. At an amazing price affordable fashion at an amazing price pounds or less process in. Home accessories at affordable prices industry in Bangladesh, says Stewart on sharing more on their own.! 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