Supply Chain Strategy for Primark for Sourcing its Products in Asia

[Year]
SUPPLY CHAIN STRATEGY FOR PRIMARK FOR SOURCING ITS PRODUCTS IN ASIA
STUDENT NAME
INSTITUTIONAL AFFILIATION(S)

Table of Contents
1. Introduction....................................................................................................................2
2. Review of Literature..............................................................................................................3
3. Industry overview...................................................................................................................4
4. Current trend and market segmentation of Asian apparel industry........................................5
5. SCM and buyer-seller relationship in clothes industry..........................................................7
6. Supply chain strategy for sourcing Primark products in Asia................................................8
6.1. Characteristics of clothes market.....................................................................................8
6.2. Basic supply chain followed by clothes companies........................................................9
6.3. Agile supply chain (AGC) framework..........................................................................11
6.4. Implementing ASC in Primark core business strategy..................................................13
7. Conclusion............................................................................................................................15
References................................................................................................................................17

1.Introduction
In today’s marketplace, the strong competition has not only made companies develop
a link between networking partners but also develop enhance supply chain systems for
smooth functioning of businesses in local and foreign countries. Consumers demand also
keep changing for which companies need to react promptly whenever a new trend and
customers’ needs appear, henceforth making competition more time-sensitive. It can be said
that fashion apparel industry is more prone to such changes that can contribute in determining
failure or success of brands (Kumar, 2005).
Unlike other sectors, clothing industry has also been witnessing global recession,
however, Primark has been able to sustain present sluggish market by showing a remarkable
growth with opening more than 200 stores with refurbished supply chain management in the
company. Ethical trading in supply chain of the company is one of the many reasons for such
growth, however, there are few stances when the company was criticised for working with
suppliers involved in unethical practices in their manufacturing units (BusinessGreen, 2018).
Nevertheless, the main purpose behind this report is to identify significant factors that needs
to be considered for developing a successful supply chain strategy for sourcing Primark’s
clothes to retailers situated in Asian market.
Primark is one of the apparel companies that has developed its efficient supply chain
in European retail market. Presently, Primark sources its products in several countries namely
Spain, Germany, UK, Portugal, Belgium, Ireland and Netherland. Primark’s targeted
consumers are mainly fashion oriented people who values for money. Primark is able to offer
value intensive products by sourcing its products in efficient manner focussing upon market
size, volume, and country’s economic stability. Primark is also focused to expand its business
while meeting its customers’ demands (Primark, 2010).

2.Review of Literature
Supply chain management (SCM) can be referred as a corporate philosophy that
integrates dependent activities, resources and people from the origin point to ultimate
destination for which the supply channel is designed. According to Agus (2015), in SCM “all
the activities involve to get the right product into the right consumer’s hands in the right
quantity and at the right time” (p. 1046). Indeed, SCM contributes towards strategic
coordination of organisational functions, transactions and business operations within supply
chain (SC) to improve overall performance of companies and SC as a whole.
Since last few decades, clothing manufacturers have migrated from developed
countries to lesser developed nations. The primary factor or motivation behind such step is to
place clothes retailing is less developed nations where businesses can be operated in low cost
manner with minimum level of taxation (Guercini & Runfola, n.d.). Nevertheless, global
supply chain and logistics of clothing remains challenging for the companies due to the fact
that they have to ensure appropriate volume along with product mix within their retail outlets.
According to Jain, et al. (2010), earlier, the main factors behind establishing supply chain
within industries were based on managing the pace in which manufactured products were
distributed among retailers. But, todays’ customers call for establishing sustainable supply
chain system due to which companies are scrambling to meet consumers demand for quick
fulfilment and fast delivery of orders.
Companies that comprehends how to perform in improved manner especially in their
SC eventually becomes successful in global marketplace. Research made on benchmarking
also shows important cost differences among companies that exhibits enhanced performance
and ones showing average performance. Traditional SCM have become a melting pot of