Supply Chain Management of Primark : Report
Added on 2020-01-21
11 Pages2848 Words5113 Views
E Business
INTRODUCTIONE business is an electronic form of business that is another name of E commerce. Theuses of information and communication technologies in business environment is known as Ebusiness. In the current business environment, technologies plays a significant role. It providesassistance in making the work easier. Primark is a UK based clothing retailer company that wasfounded in 1969 by Arthur Ryan (Monteiro, 2013). The company has total 325 stores and itserves in Ireland, Europe, UK and US market. Primark provides wide range of products andservices to the customers from its retail stores and from online as well. Supply Chain ManagementSupply chain management is a process that starts with finding resources formanufacturing and end with distribution of product and services. The process starts with planning for raw materials, finding suitable suppliers of raw material.Then starts the manufacturing process. Once the product is manufactured, company finds rightdistribution channel for making the product accessible for the customers. Primark is a retail company that has diverse products such as men's wear, women's wear,kids clothing, footwear, accessories, home ware, confectionery and beauty products. Thecompany provides low cost products with below average prices. Primark provides differentoffers to its customers at a regular basis (Swatman, 2013). Primark has joined sustainable apparelcoalition (SAC) for improving environmental and ethical impact on their supply chain. TheIllustration 1: Supply chain management
company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark andSpencers and Burberry. Supply Chain management of PrimarkRaw Material: Raw material is the basic material from which the product is made.Cotton and fabrics are main raw materials for products of Primark. The company buyscotton and fabrics in different colours. The company imports huge amount of rawmaterials from Nepal and Bangladesh. The company's raw material manufacturing storesand operations recycle clothing chemical management. Adiba Tex provides most of rawmaterials to Primark. Suppliers: Supplier plays main role in providing raw material to the company. Suppliersof Primark are closer to their factories as they can order when the need arises (Monteiro,Swatman and Tavares eds., 2013). The company works with around 700 suppliers fromChina, India, Bangladesh, Turkey and Eastern Europe. Primark's every factory isinspected carefully against the code before the company places an order with a supplier.The reason for these code is to strict and ongoing audits conducted by third parties. The following is the list of products and suppliers of PrimarkProductName of CompanyCountryPrimark GarmentsPrikot Knit MillsIndiaUndergarmentsShantou Libaolai IndustryChinaSeasonal gifts, Food packages,Mug gifts and hot beveragesQingdao Innopack Food Co.ChinaParker Lane Ltd. Shoes, Handbags, JewelleryPolandMilky FashionsSweater, Knitwear, Men and WomenSweaterBangladeshHouse slippers, blankets, hat scarfand glovesWuxi Olivia Textile manufacturer Co.Ltd.ChinaButton, buckle and BeltWideland Metal & plastic co. ltdHong KongJacketsSaintyChinaSport towelsShenzan Richsun Textile Co. LtdChinaBaby Wipes, Cleaning Wipes,Colour catcher and drain cleanerZhejiang Qimei Commodity Co. LtdChina
Manufacturing: Manufacturing is the process of production. This process includes theuses of machinery in producing the company products. Primark uses differentmachineries in process of manufacturing. Primark uses Effluent Treatment Plant (ETP) intheir factories to treat the waste water and remove chemicals and dyes that have beenused in the process of manufacturing. The company has manufacturers all around theworld. The factories and plants of the company focuses on environmental friendlyproduction that reduces pollutions in the environment (Meier and Stormer, 2012). Theclothes are ironed in advance and packed on hangers with securities and price tagsaffixed. Distribution: Distribution channels make the product available to the customers.Different organisation chooses different distribution channel. Primark uses heavy trucks,Ships and Air transport in the distribution process. These distribution networks makes theproduct accessible for the consumers. The organisation which has a strong distributionnetwork will surely be a profitable organisation. Customers and Consumers: Customers and Consumers are the people who buys and usesthe products respectively. They are the ultimate beneficiaries of the products made by theorganisations. (Mahdavi, Martens and Scherer, R. eds., 2014) In case of Primark, there isa very strong customer base of the company. The customers of Primark are widely spreadin different countries such as UK, Spain, Ireland, Belgium, Poland, Portugal, US, France,Netherlands, Germany, Austria and Italy. Customers are the profit determinant factors forevery company. In the current era, every company works with the objective of maximumcustomer satisfaction. They want to earn profit by developing good relationships with thecustomers. Online and Offline Supply and Demand Management:Supply and demand for products and services can be managed online and offline as well.In the online way, the demand for products can be increased with the help of online advertisingwith the uses of social media networks. The companies also conducts many management andpromotional events to increase their brand awareness. For the purpose of increasing the demand,companies gives discounts, coupons and other offers to their customers. Organisations uses thesetechniques by selling products at very low price (KryvinskaLoebbecke, and Tuunainen, 2013).These are the marketing strategies that the companies uses to increase the demand of their
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