Global Supply Chain Management for Primark: Issues, Strategies and Themes

This report discusses the issues, challenges, and benefits of global supply chain management for Primark, along with recommended strategies for achieving key performance indicators. It also highlights five themes related to global logistics and supply chain management, including just-in-time management, total quality management, lean management, green supply chain management, and risk management.

Running head: GLOBAL SUPPLY CHAIN MANAGEMENT
Global Supply Chain Management
Name of the Student
Name of the University
Author Note
Executive Summary: 388 words
Introduction: 129 words
Task 1: 1069 words
Task 2: 1092 words
Conclusion: 257 words

1GLOBAL SUPPLY CHAIN MANAGEMENT
Executive Summary
The main function of the supply chain management is to manage the movement of raw materials
from the manufacturing unit to the end-users. The main purpose of the effective supply chain
management is to achieve efficient fulfillment, drive customer value, enhance organizational
responsiveness, build network resiliency and facilitate financial success. However, companies in
recent times, intends to serve their organizational services to a greater demographic region. Thus,
in order to obtain that organizational goal, global logistics and supply chain management process
shave to be effectively implemented by the organization. The organization that is considered in
this organization is Primark. Primark is a member of the Sustainable Apparel Coalition and an
Irish clothing and accessories company, employees 68,000 employees and operates their
organizational functionalities in 325 locations This report also highlights the supply chain issues
for the considered organization. The current issues that are identified in the organization are
partnership with unethical contractors, lesser implementation of the information technology and
IoT in this fashion industry and lesser use of greener operations. The report also highlight that
Just-in-Time (JIT) process can be utilized by an organization for enhancing the cost efficiency;
while, supply chain collaboration and implementing total quality management is used for
attaining global access. Moreover the lean method and 5-R model should be utilized by a
company for implementing green operations in supply chain management process; whereas, the
Cost of poor quality (COPQ) should be used for obtaining the KPI of quality products n the
manufacturing process.
The report also highlight that the Just-in-Time Management should be used by fast fashion
industry through keeping the raw materials are kept in the inventory for fulfilling the demand of
the in-season adjustments. The Total Quality Management can be obtained through focusing on

2GLOBAL SUPPLY CHAIN MANAGEMENT
customer needs, leadership and involvement of people, process management, system
management, continual improvement and decision making. An organization can also implement
lean management for waste elimination, effective plant layout, reduction of production cost and
reducing the risk of late delivery. This waste reduction process helps the organization to get
associated with many other organizations in the future and expand their business in greater
regions. Dematerialization, detoxification and de-carbonization should be implemented by these
organizations for incorporating the Green Supply Chain Management; however, the risk
management can be obtained through risk identification, risk assessment, risk treatment and risk
monitoring.

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Table of Contents
Introduction............................................................................................................................................4
Task1......................................................................................................................................................4
1.0 Introduction..................................................................................................................................4
2.0 Discussion....................................................................................................................................4
2.1 The current issues....................................................................................................................4
2.2 Recommended strategies for obtaining each KPI....................................................................5
2.3 Complementation or confliction in achieving KPI..................................................................7
2.4 Barriers and risks faced...........................................................................................................8
Task- 2...................................................................................................................................................8
1st Theme- Just-in-Time Management..............................................................................................8
2nd Theme- Total Quality Management............................................................................................9
3rd Theme- Lean Management........................................................................................................10
4th Theme- Green Supply Chain Management...............................................................................11
5th Theme- Risk Management.........................................................................................................11
Conclusion...........................................................................................................................................13
Reference List......................................................................................................................................14

4GLOBAL SUPPLY CHAIN MANAGEMENT
Introduction
This business report is divided into two parts. In first part of the report, highlight the
supply chain risk faced by the organization Primark. The issues, challenges, expected future and
benefits of the global supply chain will be discussed for obtaining four important key
performance indicators- cost efficiency, global access, green operations and quality products.
Additionally some recommendations are also suggested followed by the discussion of the
barriers and risks faced if the organization were to implement these strategies.
The second part of the business report highlights five themes related to global logistic
supply chain management system. These five themes are related with the global logistics and
supply chain management. The five identified themes are- just-in-time management, total quality
management, lean management, green supply chain management and risk management.
Task1
1.0 Introduction
In this section, the details about the current issues faced by the Primark in terms of cost
efficiency, global access, green operations and quality products is highlighted. Moreover, the
complementation or conflictions in achieving these four key performance indicators have also
been addressed. Lastly, the discussion is followed with the information of the barriers and risks
faced if intends to implement the identified strategies.

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2.0 Discussion
2.1 The current issues
The current issue that is faced by the organization regarding the cost-efficiency for
Primark is that the stores are always loaded with apparels. The problem that is faced by the
organization is not all the stock can be sold which leads to the wastage of the apparels once it
becomes out of fashion (The Guardian 2018). This problem leads to the further wastage of the
products and more cost allocation for the resources for the next lot of fashion apparels. Another
issue that represents the problem of global access is that Primark do not provide any customer
assistance reading the products. Issues related to the quality of the materials, loose stitches of the
apparels and the difference in size for the same design are the issue regarding the quality issue in
Primark (The Guardian, 2018). There is also lesser implementation of the information
technology and IoT in this fashion industry. Additionally, lesser use of greener operations also
witnessed through high carbon emission rate through the vehicles they use and from the
manufacturing procedures. In terms of implementing the greener supply chain management can
be witnessed through the packaging material and the synthetic material of the clothes that cannot
be recycled. Lastly, the quality of the materials is poor and this is the reason that Primark can sell
their products in lesser amount compared to the other fashion apparel industry (New Statesman,
2018).
2.2 Recommended strategies for obtaining each KPI
Cost efficiency- In order to enhance the cost efficiency of the supply chain, Primark
should involve the concept of Just-in-Time (JIT). The JIT should be pull JIT so that the cost of
the inventory can be diminished. The utilization of the RFID technology is utilized for
maintaining the record of the utilization of IoT in the supply management process also reduces

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the manual cost for performing the operations which results in the consistency of the supply
chain procedure in all the countries the company operates the business (Tu, 2018). The barrier
occurred in this case is lack of knowledge of the people; who will maintain the supply chain
process. Taken for instance, the employees employed for supply chain process are not much
educated as a result the newer technology for supply chain management takes much time for
those workers.
Global Access- The supply chain collaboration can be utilized by the organization to
acquire position in the global market. This collaboration can be horizontal collaboration with the
other companies to share their supply chain assets (Sanchez Rodrigues et al., 2015). Total
quality management can also be integrated with supply chain management so as to integrate the
participation and partnership in all internal functions can be obtained along with collaboration
with all the external partners (Talib et al., 2011). This will improve the supplier relationship and
boost the supply chain process (Vanichchinchai & Igel, 2009). The barrier arises in this case is
the interest of conflict due to the different perception of the external partners. The
communication gap is the main reason for the occurrence of this barrier.
Green operations- The models of the Lean method should be utilized in supply chain
process for reducing the waste. Pui-Yan Ho and Choi (2012) argued that apart from lead
management, the utilization of the 5-R model should also be considered for implementing green
supply chain management (GSCM). The five R model comprised of five processes- recycle,
reuse, reduce, re-design and re-imagine (Pui-Yan Ho & Choi, 2012). The recycle process help
the fashion company to focus more on the water recycling and steam power generation for
recycling steam to generate renewable energy. The sewing thread cones can be returned to the
supplier in the reusing process. The barrier in this case is high cost of investment to change the

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existing process into the newer one. This take more time in changing the organizational structure
which furthermore need knowledge among the employees to utilize the technology for
performing the organizational goals.
Quality products- The model of Cost of poor quality (COPQ) can be utilized in order to
identify the origin of the production line and external services issues employed. The Total
Quality Management can also be implemented in this section as it highlighted the regulations a
company has to follow for marinating the quality through supply chain. ISO 9000 registration is
applied by the organization to increase the inventory turnover, improving supplier relations,
loyalty and repeated purchase, decreasing complaints, decreased nonconformities, increasing sale
and market share (Casadesus & de Castro, 2005). Casadesus and de Castro (2005) also segregate
the characteristics of the companies that are ISO 9000 certified and they are- prioritizing product
quality, periodical auditing, and collaboration with technical aspects, concerted quality system
and surveying the customers. These aspects represent the quality maintenance of the products
through the supply chain management. Partnership with the government and the standard boards
are necessary in this aspect. Problem arises when the government of the host country is
corrupted. These governing bodies need more cost not only for developing the business
agreements but also ask for high commission from the profit gained for the business.
2.3 Complementation or confliction in achieving KPI
Thus, it can be sated that the model of TQM helps the Primark Company to collaborate
with the suppliers to maintain relationship with them and also maintain the quality of the
products that is provided to them. Thus, global access and partnership model can be considered
as complementary aspect with the model of TQM. Moreover, the utilization of the JIT and lean
method also help in enhancing the quality of the products but conflicts the model for cost

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effectiveness as the greener solution can be applied, the cost of the products will be higher. The
prime reason is that the recycling and waste management department need more cost to do the
operations but the cost invested in the process impacts on the price of the product. However, the
technology utilized for the JIT and IT technology like RFID need more electricity that on one
aspect complement the model of green supply chain (GSM) but the high use of power
consumption conflicts with the same model by increasing the problem of heat generation.
2.4 Barriers and risks faced
The risk faced by the company in implementing these models is to make adaptable
change in the existing business plans and operations. All the vendors and suppliers are also
communicated regarding the changed policies and business processes. Otherwise, the problem of
synchronization arises and ineffective manufacturing process arises (). The TQM standards are
not same in all the countries and hence complying with all these legislations for maintaining the
same process of supply chain is also hard to achieve (Vanichchinchai & Igel, 2009). In addition
to that, all the employees of the organization have to provide with enough knowledge base to
utilized greener techniques used for the manufacturing of products and they transferring it
through the supply chain management.
Task- 2
1st Theme- Just-in-Time Management
Filippini and Forza (2016) represented that Zara utilizes the technique of JIT supply
chain in order to optimize the cost of the inventory. Raw materials are kept in the inventory in
order to fulfill the sudden customer’s demands. ZARA also keeps reserve 85 percent of their
capacity in the factories for fulfilling the demand of the in-season adjustments (Forbes.com.,

9GLOBAL SUPPLY CHAIN MANAGEMENT
2018). This results in able to be flexible in amounts, high frequency for production and
developing variety of new products every time. Additionally, the fabric sourcing company
department along with sewing facilities should be near to the headquarters so that the progress of
the manufacturing process can be assessed regularly. Another process is to produce the
maximum percentage like 50% to 60% of the clothes in the middle of the season so that in-
demand style can be satisfied (Forbes.com 2018).
Moreover, Ptak and Schragenheim, (2016) highlighted that Dell also leveraged JIT
principles and include suppliers to obtain the JIT goals. The important factors for the Dell
success is- dependable suppliers to meet the demanding lead time requirements, willingness of
suppliers to maintain inventory on hand and seamless system for transmitting component
requirements (Lai and Cheng, 2016).
2nd Theme- Total Quality Management
Zimon (2015) highlighted some of the principles of the supply chain management that are
focusing on customer needs, leadership, involvement of people, Process management, System
management, Continual improvement and decision making. Thus, from core business
management aspects to customer management, total quality management addresses all the
factors. Some of the quality management tools are ISO 9001, ISO 14000, ISO 9004, ISO 10000,
OHSAS 18001, INDUSTRY STANDARDS, QFD, KAIZEN, FMEA, SERVQUAL, KANO,
POKA-YOK (Zimon, 2015). The product design and technical preparation of the products can be
obtained by structural, technological and organizational preparation of production (Zimon,
2015).
Company like Toyota and Zara have implemented communication plan for clear
understanding of the requirement in the supply chain process (Monczka et al., 2015). Retail

10GLOBAL SUPPLY CHAIN MANAGEMENT
companies utilize the TQM principles of ISO9000 in their supply chain process in order to
enhance the competition ability and operation efficiency of the whole supply chain system (Ptak
& Schragenheim, 2016).
3rd Theme- Lean Management
Agarwal and Sharma (2016) highlighted that companies obtain lean management by
waste elimination, effective plant layout, reduction of production cost and reducing the risk of
late delivery. Tortorella (2018) also stated that the tools used for implementing the lean
management are just in time, Kanban and Kaizen. Company can use Kanban process which uses
signal cards that comprises of instructional card, visible record and signboard for getting clear
vision of status of production, monitor inventories and number of ordered placed by customers
(Schonsleben, 2016). The Kanban card is attached with the unit throughout production and the
entire system is relying on the bar codes details, electronic database for tracking the inventory
and the management procedures.
Tortorella (2018) moreover, highlight that Kaizen process is more focused on the waste
management of the supply chain process. Toyota utilizes the concept of the kaizen and identifies
seven wastes in their manufacturing process- overproduction, waiting process, processing,
motion, inventory, transportation and defects (Schonsleben, 2016). Thus, in order to diminish the
waste production, every organization should focus on the value stream mapping for identifying
the issues in the manufacturing process for the improvement of supply chain, understand the
sources of waste and the process of information flow. Supplier associations are also important to
formulate for improving communication and knowledge among the supplier for managing the
supplier management (Schonsleben, 2016). Apple on the other hand aims for closed-loop supply

11GLOBAL SUPPLY CHAIN MANAGEMENT
chain so that they do not have to mine the raw products from where they develop the products
for the users. Thus, the process of recycling can also be utilized.
4th Theme- Green Supply Chain Management
Tachizawa et al. (2015) stated that through green supply chain management, a company
should focus on dematerialization, detoxification and de-carbonization. There are many activities
that can be implemented for obtaining the green supply chain management are following green
procurement practices, using energy efficient products, reduces gas emissions and water wastage,
using biodegradable packaging and recycle the product and packaging. Famiyeh et al. (2018)
furthermore found an argument that companies with offices more than one location found
monitoring and managing green SCM practices is a matter of high cost that hampers their annual
profit.
MAS Holdings and Marks and Spencer establish eco-factories, which is designed as
carbon neutral combined with energy saving devices and waste reduction processes
(Independent.co.uk, 2018). This result in consumption of 40% less electricity compared to
similar factories. Ford Motor Company on the other hand increased the use of recovered
materials in their car manufacturing process and the amount found out to be utilization of four
billion pounds of recycled materials for vehicle designing (Auto.economictimes.indiatimes.com,
2018). Maersk Line additionally, reviews their 2,000 suppliers out of which 1,500 of them
signed for Responsible Procurement for using green technology.
5th Theme- Risk Management
Fan and Stevenson (2018) highlighted that supply chain risk management- risk
identification, risk assessment, risk treatment and risk monitoring. Companies include some
components in the risk identification process that are identifying drivers and sources of supply

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chain risks along with list and categorize risk in every manufacturing process. Petersen and
Lemke (2015) moreover stated that the process of risk assessment comprised of risk
prioritization, risk inter-relationship, applied and proposed strategies for assessing the obtained
risk. Additionally, risk treatment process is evaluated through risk acceptance, risk avoidance,
risk transfer, risk mitigation and risk sharing (Fan and Stevenson, 2018). Prakash et al. (2017)
furthermore depict that risk management in the company can be obtained through innovation and
efficiency with contractors for legalese contracts. Through procurement contract portfolios, the
legal risk of the supply chain can be avoided. In fashion industry, the supply chain risk factors
are comprised of market driven orientation risk, cost reduction risk, brand internationalization
and market expansion risk (Prakash et al., 2017). The factors for market driven orientation risk
are forecasting process, classification of inefficient items in the process, market heterogeneity,
unstable demand and historical data for fashion items. On the other hand, the cost reduction risk
factors comprised of inefficient interaction styling, delays in closing sales, forecasting error,
process misalignment, poor virtual integration, longer production lead time, wrong delivery
scheduling, inefficient item division in warehouse and poor management of Electronic Data
Interchange (EDI) system (Petersen and Lemke, 2015).
In Marsh, which is a professional insurance and risk management for supply chain,
utilizes supplier and distribution relationships, supply chain risk management strategies like risk
resilient, agile and risk intelligent and risk management investments to plan for risk management
(Marsh.com 2018). They developed supply chain risk management program through data,
analytics, and mapping and examining the supply chain of the company through a value-driven
lens and segregate the key services and products to identify the risk. In supply chain resiliency

13GLOBAL SUPPLY CHAIN MANAGEMENT
business analytics is utilized for to allocate risk resources and evaluate return on risk
investment (RORI) (Marsh.com 2018).
Conclusion
The company that is taken into consideration is Primark which is a member of the
Sustainable Apparel Coalition and operating their organizational functionalities in 325 locations.
The current issues that are identified in the organization are partnership with unethical
contractors, lesser implementation of the information technology and IoT in this fashion industry
and lesser use of greener operations. The recommended strategies for enhancing the cost
efficiency is to utilize the Just-in-Time (JIT) process; whereas, the global access can be obtained
from supply chain collaboration and implementing total quality management. Moreover the
green operations can be acquired through lean method and 5-R model. The quality products KPI
can be accomplished through the implementation of Cost of poor quality (COPQ). In this case,
the barriers and risks faced by the company is identified as making changes in the existing
business plans and operations, effective communication regarding changed policies and business
processes and complying with all TQM standards.
The second report highlighted that through Just-in-Time Management the raw materials
are kept in the inventory for fulfilling the demand of the in-season adjustments. The Total
Quality Management can be obtained through focusing on customer needs, leadership and
involvement of people, Process management, System management, continual improvement and
decision making. Moreover, the Lean Management should be implemented mainly for waste
elimination, effective plant layout, reduction of production cost and reducing the risk of late
delivery. The theme Green Supply Chain Management mainly focused on dematerialization,

14GLOBAL SUPPLY CHAIN MANAGEMENT
detoxification and de-carbonization; however, the risk management highlights risk identification,
risk assessment, risk treatment and risk monitoring.

15GLOBAL SUPPLY CHAIN MANAGEMENT
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