Discount fashion retailer Primark has announced that it is to tackle issues of ethical sourcing and employment via its supply chain.
The retailer has come under fire in the past after the BBC show Panorama found that suppliers in India were sub-contracting the work from Primark to other manufacturers who employed child labour.
Primark has signed up to a deal with a web-based supply chain management company in order to ensure a greater global visibility of its suppliers.
The fact that the issue is being tackled through supply chain management says a lot about the capabilities of third-party supply chain management companies.
Small and medium-sized companies may wish to contract a third-party supply chain management company if they too wish to either increase efficiency or decrease costs during the current recession.
Ray Ellis, business systems analyst at Associated British Foods, Primark's parent company, said: "This is demonstration of Primark's commitment to having the best available solutions to help manage its supply chain, and to improve working conditions whilst maintaining competitive edge and quality in a fast-moving fashion environment."
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