An Evaluation of Aldi

Running head: AN EVALUATION OF ALDI
AN EVALUATION OF ALDI
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1AN EVALUATION OF ALDI
Table of Contents
Part A...............................................................................................................................................2
ALDI’s Approach to Operations Management............................................................................2
Part B...............................................................................................................................................9
Assessment of Aldi’s Guiding principle......................................................................................9
Assessment of the activities undertaken by Aldi through Lean model.......................................9
References......................................................................................................................................14

2AN EVALUATION OF ALDI
Part A.
ALDI’s Approach to Operations Management
The strategic operations management of ALDI includes certain range of activities that are
processed by its employees through employing machines foe developing consumer products and
services. The operations model of the company has “Input process output system” that is focused
on manufacturing products and services of desired quality and quantity in attaining the required
production efficiency (Hill and Hill 2017). The strategic approach of operations management of
ALDI facilitates the retail company in “building efficiency at each level”. The strategic focus of
the companies’ operational model is to keep costs low ad quality high for gaining increased
market shares. ALDI is keeping its costs low through controlling its operations cost and on
improving operational strategies in attaining high consumer loyalty and sustaining its position as
largest retailer in the industry. The figure below indicates the operations model of ALDI focused
on which the company develops its strategic supply chain approaches for offering exceptional
quality products to consumers through maintaining efficiency at every level of business
operations.

3AN EVALUATION OF ALDI
Figure 1: Strategic Operations Model of ALDI
(Source: Brandes and Brandes 2019)
The strategic operations model of ALDI is focused on developing and maintaining retail
outlets that has consumers walking in to acquire necessary goods and pay through medium as per
their convenience. The SKUs (Stock Keeping Units) within the company’s store inventory gets
greatly depleted while they are all replenished by the company’s supplies each day as per
precious day’s closing order (Ivanov, Tsipoulanidis and Schönberger 2017). The retail supply
chain operations of ALDI include several activities and actors that decreases and distributes right
goods to the right outlets within a specific time. This serves as the major operations process of
ALDI, where the pull generated from the consumers purchase results in the drop within stock
level that in turn triggers indicators within store along with central warehouse which is being
regularly replenished.
Consumers