Value Chain Analysis of Primark

Primark is a fast-fashion retail chain Irish multinational company and it has established a network of over 439 chain stores in various countries worldwide. Arthur Ryan founded and started the retail chain brand in 1969. Today, we’ll discuss the value chain analysis of Primark supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Countries of Suppliers Factories of Primark

• Slovakia, Serbia, South Korea, Morocco, Netherlands, Spain, Greece, Thailand: 1
• Germany, Tunisia: 2
• France, Ireland, Romania: 3
• Republic of Moldova: 4
• Portugal: 5
• Italy: 6
• UK: 13
• Sri Lanka: 15
• Myanmar: 18
• Cambodia: 19
• Vietnam: 20
• Pakistan: 22
• Turkey: 81
• Bangladesh: 103
• India: 112
• China: 444

The Value chain analysis of Primark supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Primark value chain analysis company example as follows;

Value Chain Analysis of Primark

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Primark supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Primark

The primary activities are directly involved in the production of products and goods and adding value to the fast-fashion retail chain company. Some of the five main primary activities in the value chain analysis of Primark supply chain analysis are as follows;

Inbound Logistics of Primark

I-Large Suppliers Network

Primark has established a very large suppliers network comprising over 400 suppliers in approximately 24 countries across the globe. The large and diverse supplier network in various countries helps the company to ensure the smooth availability of raw suppliers, materials, and finished goods for products and services.

II-Relationship with Suppliers

In order to keep up with the growing market trends of the fast-fashion industry, Primark has developed a very good relationship with suppliers, vendors, and manufacturing partners. It allows the company to gain a competitive edge by quickly responding to the growing market trends of fashion in; a timely making the products available to the customers.

III-Suppliers Code of Conduct

Primark has developed a strict code of conduct for suppliers to ensure their compliance with human rights standards and regulatory requirements. It comprises of following areas;

• Anti-bribery and corruption
• Proprietary information of the suppliers
• The good professional reputation of the suppliers
• Financial stability
• Ethical practices
• Compliance with human rights standards

Outbound Logistics of Primark

I-Transportation & Distribution

Wincanton is the official transport service provider of the fast-fashion retail chain brand Primark. The retail chain brand also partners up with various transport and 3rd party logistics service providers for the transportation and distribution of products and goods. However, they move products and goods from the suppliers to the manufacturing factories and then move the finished goods to the distribution centers, warehouses, and retail chain stores.

Operations of Primark

I-Manufacturing Factories

Primark has roundabout over 400 production and manufacturing factories in India, China, Turkey, Bangladesh, and various other countries across the globe. The worldwide network of production and manufacturing factories would help the company to quickly respond to the changing market trends of fashion.

II-Warehouses & Distribution Centers

Primark has developed approximately 8 distribution centers and warehouses in various countries across the world. The retail chain brand has built distribution centers precisely in those geographical regions that are closer and nearer to the retail chain stores.

Marketing & Sales of Primark

I-Marketing & Advertisement

Primark runs various types of marketing and advertisement campaigns for the promotion of its retail fashion products, services, and brands. The company employs various media channels to approach the end consumers and they’re as follows;

• Environmental sustainability and ethical practices
• Influencers marketing
• Social media market
• Creating buzz about the limited product offer
• Strong commitment to environmental sustainability

II-Retail Chain Stores

Primark has established a very large network of approximately 439 retail chain fashion stores in various countries across the world. The worldwide network of fashion stores would help the company to directly connect with customers and sell its fashion apparel to them.

Services of Primark

Primark offers a wide range of fashion products and services to the end consumers. The additional services amplify the worth and value of the fashion products of the company. However, some of them are as follows;

• Beauty and fashion design
• Food and drinks outlets
• Unique interior design of the company

Supporting Activities of Primark

Supporting activities are indirectly involved in the production of products and goods and adding value to the fast-fashion retail chain company. Some of the main supporting activities in the value chain analysis of Primark supply chain analysis are as follows;

Infrastructure of Primark

Primark has established a very large infrastructure of production and manufacturing factories, retail fashion stores, distribution centers, and warehouses. The large and well-developed infrastructure would help the company to timely deliver fashion designs and clothes to customers with limited or no disruptions.

HRM of Primark

Primark has employed approximately 76000 employees and workers to manage its global operations. The human resource management department of the company plays a key role in building a large suppliers network, an innovative workplace environment, recruiting and selecting the right suppliers, and offering equal opportunities to all regardless of any differences.

Technological Development of Primark

Primark invests a significant amount of capital resources in research and technological development. It allows the company to develop unique fashion designs, efficient methods of production, automation technology in the warehouses, and timely delivery of the finished with fast delivery and distribution channels.

Procurement of Primark

Primark is highly careful and cautious about ethical sourcing and procurement of raw materials and finished goods. In fact, the retail chain band has set up a strict code of conduct for suppliers to ensure their compliance with human rights standards and requirements.

Conclusion: Primark Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis 

After an in-depth study of the value chain analysis of Primark; we have realized that Primark is the world’s leading retail chain brand. If you are learning about the Primark value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.