Answer To: COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 This material has been reproduced and...
Abhinaba answered on Sep 03 2021
LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
Table of Contents
Executive Summary 3
Introduction 3
History of the Aldi 3
Characteristics of the Aldi’s Supply Chain 4
Flexibility 4
High Inventory Optimisation 5
Sustainable Supply Chain 5
Three Activities Used by Aldi to Ensure Sustainability and Ways to Adopt Sustainable Practices in Its Supply Chain 5
Collaboration by Aldi with Its Suppliers and Logistic Partners for High Customer-End Satisfaction 6
Collaboration with Suppliers 6
Collaboration with Logistic Partners 7
Conclusion 7
References 8
Executive Summary
In the current report the supply chain management and logistics of Aldi has been discussed. Firstly, introduction on the topic is given. Then the brief history about Aldi is discussed. The report then discusses about the characteristics of Aldi's supply chain, which contains three parameters. These three parameters are the flexibility of supply chain, high inventory optimisation and sustainable supply chain. The report critically assesses the three activities, which are used by Aldi to ensure sustainability. Then the methods for adopting sustainable practices in its supply chain are discussed. After this, the collaboration between Aldi and its suppliers is thoroughly depicted. The way by which the collaboration between Aldi and logistic partners highly satisfy the customer has also been discussed. At end the conclusion has been made.
Introduction
Supply chain management is required for any organisation for managing the flow of products and services. Supply chain management (SCM) includes all procedures that is transformation of raw materials into final products. For development of any organisation supply chain management is very important from its business perspective. Production, shipment, and distribution of any organisation are controlled by SCM system. One of the important parts of the supply chain management is logistics management. Logistics management regulate the supply of raw materials in any organisation for the production and business purposes also. Quantification of the amount of raw materials is important for business of product manufacturing and selling in market to the customers ultimately. Low amount of raw materials according to the need of the business is an important factor. The report deals with supply chain management and logistics of an organisation. The chosen organisation for the current report is Aldi.
History of the Aldi
Aldi was set-up by Karl and Theo Albrecht in the year of 1946, in German city of Essen. The name of Aldi is the combination of Albrecht and discount. Aldi is the biggest retailers in Germany. It is well known because of its low-price rate. Aldi operates through "everyday low price" policy and this business organisation does not follow multi-buy offers. Aldi was separated into two branches in 1962 (The Telegraph, 2019). Aldi Nord operates shops in north Germany and Aldi Sud, which is operated in south Germany. Aldi Sud operates the Aldi stores in United Kingdom. Aldi group has been operating 10000 discount stores in 20 countries. The countries where they build-up their grocery discount store those are Australia, Austria, China, France, Poland, Spain, Switzerland and more on. Total revenue of Aldi in the year of 2018 is 30.3 billion Euros. This huge amount of revenue shows gradual growth in the recent years. Aldi group has highest profit levels as compared with others discounter supermarket in Germany. From the huge amount of the profit level it is assumed that the business condition is good enough in the market of Germany. Aldi stores also called no-frills stores because verities of items are found at discounted price. Food, beverages, toilet paper, sanitary articles and other inexpensive household items have been sold by Aldi.
Aldi’s Supply Chain
The supply chain management system plays an important role for Aldi. The supply chain of the Aldi is flexible, highly segmented and ethically as well as from a business point of view, which has enabled the organisation to sustain for more than fifty years. Aldi collects raw materials from its suppliers and use quality, consistency and standards monitoring as a major process. After the collection of the raw material, they are distributed under a single distribution...