Supply Chain Management and Sustainability in Aldi

This research focuses on analysing and evaluating the supply chain complexity, risk management, and sustainability of Aldi, a leading retail giant. It explores the company's approach to supply chain management, including supply chain design, integration, and sustainable practices. The research aims to identify why Aldi chooses to be a discounted retail leader and provides recommendations for improving future supply chain performance.

Project for logistics
supply chain strategy
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Backgrounds ...................................................................................................................................1
Project topic ....................................................................................................................................1
Purpose of research .........................................................................................................................1
Business theory and practice............................................................................................................2
Research method .............................................................................................................................2
Purpose of research .........................................................................................................................2
LITERATURE REVIEW................................................................................................................2
METHODOLOGY..........................................................................................................................5
Data collection and analysis.............................................................................................................5
Presentation of findings...................................................................................................................6
Implications and recommendation.................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Backgrounds
The Supermarket and Grocery Stores industry is one of the most competitive price-based
industries with the emerge of their own low-cost private-label products. Australian retail and
grocery market segmentation stands at 2.2% of the Asia-Pacific food and grocery retail market
with values at 101,812.7 (Marketline, 2020).
Amongst the retail grocery industry, Aldi Australia emerges as the strongest competitor
with more than 500 plus stores in Australia since introduction in Australian market in 2001 with
the value of $102 billion. With its rapid expansion Aldi is expected to secure 9.2% of the
industry share in Australia with the products sourced sustainably to reduce the environmental
and social impacts of their production (ALDI, 2020).
Project topic
Aldi has primarily relied on the supply chain counterparts for the products and their
delivery to the customers as well as maintaining the supply chain relation and stock
management. However, with the forecast of increase in production, shipping and storage costs,
the retail giant should be focusing on supply chain management to research sustainable ways in
production to minimize negative impact on social reputation and economic growth (Genovese
and et. al., 2017).
The opportunity existing in sustainability and market growth is to focus on sourcing best
products at best price by advancing the supply chain relationship from fair labour practice to
reducing environmental impact. According to Mangan and Lalwani (2016), Aldi Australia
identified high risks areas in forecasting of inventories, sudden shortage of raw materials, which
highly impacts on the flow of products and customer satisfaction. This means that Aldi would
lose its reputation as a business aiming for the sustainable business growth where the business
might lose the customers and the forecasted revenue. By analysing and evaluating those risks
Aldi would be able to move towards achieving the sustainable supply chain (Meixell and Luoma,
2015).
Purpose of research
The purpose of this research is to critically analyse and evaluate the supply chain complexity,
risk management and sustainability of Germany supermarket retail Aldi to identify why the
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business choose to be the discounted retail in the world with the proper planning, controlling
and executing products from raw materials to finished products. Further, the recommendations
have been made for improving future supply chain performance based on company future growth
strategies.
Business theory and practice
The following theories (concepts and frameworks) that will be reviewed in this topic are:
- Supply Chain Design (Masoumuk et.al., 2014, Sustainable Supply Chain Design)
- Supply Chain Integration (Bals and Tate, 2018, Advancing the Theory of Supply
Chain)
- Sustainable Supply Chain Management (SSCM) Theory (Brandenburg,
Gruchmann and Oelze, 2019, Sustainable Supply Chain Management)
Research method
The case study research will focus on the retail industry and ALDI. The research method
includes collecting secondary data sources from the retail industry statistics from MarketLine,
journal articles such as Martins (2019), Faulk (2014) and Masoumuk at.al. (2014). The collected
data will be used to conduct quantitative and qualitative analyse of ALDI sustainable growth.
Tools that will be used are Benchmarking, six sigma and SCOR model. Primary data will not be
collected and analysed.
Purpose of research
The purpose of this research is to critically analyse and evaluate the supply chain
complexity, risk management and sustainability of Germany supermarket retail ALDI to identify
why the business choose to be the discounted retail in the world with the proper planning,
controlling and executing products from raw materials to finished products. Further, the
recommendations have been made for improving future supply chain performance based on
company future growth strategies.
LITERATURE REVIEW
The supply chain management is defined as the management of the flow of goods and
services which is done in transforming the raw material in the final product. As per the view of
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Suryanto, Haseeb and Hartani (2018) supply chain management is very essential for the
companies to effectively manage their operations. If the company is not able to manage the
supply chain in effective and timely manner, then this will affect the final flow and quality of
goods. Supply chain management is also good for managing the sustainability of the company.
The major reason for this is that the optimum utilisation of the resources will lead to sustainable
growth of the company and this will lead to growth and profitability of the company (Durach,
Kembro and Wieland, 2017).
On the other side, Kshetri (2018) argues that if company would not manage its supply
chain in proper and effective manner then this will result in financial loss for the company. The
major reason for this is that when the company will not have effective approach to the utilization
and managing of the raw material then this will result in delay in production and distribution of
the goods and services. When the company effectively manages the supply chain then this will
result in on time availability of raw material in the production line and this will assist in
managing the business in effective manner with the final outcome of the finished products and
services. In addition to this, transportation facility holds major risk associated with supply chain
management. This implies that in the case that if the transportation system is not managed
proper in supply chain cycle, this could highly impact on the delivery of goods and services in
timely manner which directly affects the sustainability of the business.
As per the views of Koberg and Longoni (2019) the major thing for the supply chain
management is the effective supply chain design. The supply chain design is the process through
which the company manages to structure with the intention of maintaining the right balance
between the inventory and its cycle and the transportation and cost as well. The supply chain
design assists the company in deciding for the whole plan of how the raw material will be
occupied and how it will be transformed into finished goods. Further this involves the process
through which the finished goods will be provided to the consumer for the consumption. This
also involves the cost of transporting the goods and services to the ultimate consumer for the use.
Thus, this supply chain design acts as a blueprint of the whole process which has to be followed
in order to manufacture the goods and services and then transfer it to the end consumers. As a
sustainable focus, ALDI has design to limit the carbon emission using the solar power for its
stores and distribution centres across Australia. Also, it is very essential for the companies to
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have a sustainable supply chain design so that the business can work in profitable situation for a
long term.
On the contrary Ben-Daya, Hassini and Bahroun (2019) argues that the supply chain
integration is also very necessary for the success of the company. The supply chain integration
is a process through which all the parties involved in the manufacturing of the product are
integrated into a single process. The major reason for this is that when the company works in the
direction of manufacturing the product then this result in the involvement of many departments
in various stages of the production, distribution, and consumption. If the working of these
involved departments would not be well coordinated, then this would affect the whole process of
the manufacturing and the supply chain, as supply chain is directly dependent on the group effort
up to a greater extent. Also, factors such as waste extraction, emissions, human slavery, use of
degradable packaging are some of the factors affecting the supply chain sustainability (Saberi
and et. al., 2015). Integration of various departments in the supply chain could help in
minimising the usage of inventory such as extra storage facilities and extra human hours for the
future which helps in implementation of systematic approach (Connelly, Ketchen and Hult,
2013).
In addition to this Tiwari, Wee and Daryanto (2018) articulates that the use of effective
supply chain management is very essential for the company to effectively use of the supply chain
management in effective and efficient manner. The major benefit of using the supply chain
management by the companies especially the supermarkets like ALDI is that it ensures that
company is timely producing the goods and services. It is then passed on to the next stage of the
process which is providing the product and services to the consumer on time. It also has
established its warehouse all around Australia as a strategic move to maintain the efficient design
and management in its supply chain network (Aldi, 2020). ALDI has also use supply chain
management by utilizing the local resources and local supply chain network. This could highly
enhance the development and growth of the company as being able to keep up with the consumer
demand by providing the goods and services in a timely manner, could lead to attracting more
consumers to the business stores. ALDI is able to gain trust of more domestic households to its
brands products. This was quite essential to achieve in the highly competitive market (Maamoun,
2020).
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Finally, it would be fair to say that at the time of global pandemic where every supply
chain was stretched to its capacity, ALDI as a business was able to put the resources in place to
function as an effective and reliable. The supply chain strategies were in place, the supply chain
design was efficient to recover well and supply chain management was structured to overcome
supply and demand. As a company ALDI was able to improve is supply chain and still be one of
the most competitor in retail amongst other retail rivals.
METHODOLOGY
The case study approach was used in the research methodology to understand the theory
of sustainable supply chain on the basis of its design, integration, and management in ALDI
(Yin, 2014). The primary organisation chosen for the case study was ALDI, which was
established as discounted retail which provides private label brand products. The case study was
done to provide a focus point to analyse ALDI as a business in sustainable development and
growth. Since established in 2001 in Australia, ALDI has expanded its stores across the wide
locations within Australia. ALDI is able to cut down its costs with the own privately owned
brand providing customers with the wide range of products at a discounted price. Similarly,
ALDI also gives customers products satisfactory guarantee and replace or refund options if they
are not satisfied with the quality of the products they purchased (Aldi History, 2020).
The secondary organisation chosen is Woolworths which is also within the retail industry
with the similar approach of sustainable growth and expansion. With the similarity between both
organisations, they have identical sustainable approach in growth and expansion. Woolworths is
also expanding and establishing as a retail giant as well with focus on fresh produce and
vegetables (Varghese et al., 2013).
Data collection and analysis
The secondary research data was used which includes the use of different statistical
information relating to the retail industry and data from various websites like Market line and
various journal articles like the use of Faulk (2014), Martins (2019) and many others relating to
the topic of the research. Furthermore, with the help of the collection of the secondary source of
both qualitative and quantitative method of data collection, qualitative research would assist to
develop an understanding relating to the topic of research. On the flip side the quantitative type
of research would assist in developing and analysing some of the concrete and accurate
information relating to the research topic. For the use of the quantitative analysis, the secondary
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data collected from the statistics of retail industry and the sustainable growth data of ALDI will
be used in order to analyse the numeric information, facts and figures. Further for the use of
qualitative data many different types of methods and models would be used to analyse the
research topic that is supply chain management of company.
For the qualitative analysis, the use of different types of models such as six sigma,
benchmarking, SCOR model and many other different types of models will be used. These entire
models will assist ALDI in analysing their supply chain in effective and efficient manner (Dodds
and Hess, 2020). Thus, the use of combination of both qualitative and quantitative analysis of the
data is very important to complete the research in successful and effective manner. Further in the
research the secondary data will be used in the research (Zangirolami-Raimundo, Echeimberg
and Leone, 2018). Thus, the major focus is laid over the collecting data from the secondary
sources in form of published data like books, journals, articles, and other published data relating
to research topic.
Presentation of findings
It has been found from the above analysis that supply-chain , sustainability and risk
management plays essential role within the business as with this ability to maintain adequate
control, plan, execution within the production of raw material into the finished goods is
promoted in effective manner. In this overall performance of the business is improvised as with
this overall and standardised outcome and target is achieved with perfection of in timely frame. It
is defined that management induces better flow of information as with this efficient goods and
services is promoted. It is an essential for the businesses to manage its operations and functions
in effective manner so that its ability to achieve and attained favourable outcome is increases that
has direct impact over the productiveness and profitability of an organisation. In business didn't
manage and operate supply chain that the market value and its share both get decreases as with
this quality and potential of offered goods and services is affected in timely frame. The supply
chain management basically used to manage and control working flow of activities as with this
its ability to manage long term effectiveness and sustainability both get advanced through which
rate of productiveness is promoted in sustained mode. In this an organisation also make ensure
that all the required resources and utilised with better optimisation and in this ability of business
to maintain lead with sustainable changes is induced with perfection. It enhances the capabilities
and capacity of business under which smooth flow of services is promoted as with this suitable
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delivery of products and services is processed systematically. On the other hand business must
have considerate various other prospect along with this management of supply chain and if it is
not analysed that it direct cause to financial loss of the business. In this it is necessary that
effective and efficient approach is used under which required resources is used as per timely
frame. It also processed the timely utilisation and interpretation of services and market
requirement that resulted into the perfect match in between availability of raw material through
which production line also get controlled and it assist to manage all the working standards of
business. In this accomplishment of final products and services is processed with support of
different activities and facilities as like management of transportation, major handling and
controlling of risk that directly posses sustainability and adequateness.
It is analysed with the relation to Koberg and Longoni, effective management of supply is
a major key as with this suitable designing is induced as with perfection. The management of
supply chain is a procedure in which company maintain clear goal about to maintain right and
adequate structure in which clear intention is attained towards right balanced. In this sustained
supply management is processed in which balanced control is maintained towards induction of
right strategy as within right period of time. It also aid to maintain adequate planning as with this
adequate segmentation of raw material is induced as with better utilisation of resource and
equipments. In this sustained growth is progressed and in this consumer and its consumptions get
balanced in ordinate manner. It usually involve suitable involvement as per consideration of
transportation cost by which ultimate change is induced as per matching the preference of
consumer usage and attractiveness. In support of supply chain management company develop
and design appropriate blueprint through which it is easy to implement adequate change and
modifications as per requirement and need of business. It is an aspect under which sustained
level of limitations is induced as with this factual manufacturing process is offered by the
business and with this customers preference and adequateness is induced in systematic manner.
In addition clear consideration is processed as per the basis of sustainable development in which
clear and transparent focus is maintained by which working limitations of working standards is
managed. For this ALDI maintain focus towards bounding and control towards carbon emission
that is used in relation to solar power that is required to maintain clear basis of of about
distribution channel all across Australia. It is necessary for the business to make usage of supply
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chain and its management as with this rate of profit generation and long term effectiveness is
developed successfully.
On relation to contradiction, Ben-Daya argues about to maintain supply chain integration
as with this necessary changes is implemented as per adequateness as it result in direct success
and development. It is also be acknowledged that integration of supply chain management is a
process in which different parties get performed their functions and operations as per better and
direct implementation within the manufacturing plant. The initial changes is induced as within
this better involvement of work and activities is processed as it is considerate on the basis of
certain coordination by which adequate coordinated among employee and workers is processed
so that adequate extent of working is addressed as per dependence of group working. In this
business maintain clear focus about to manage and control waste extraction, human slavery,
usage of degradable packaging, emissions that has direct affect working standards and criteria of
various departments. For this direct focus and concern is maintained towards integration of
services as within which inventories and its control is always be required by which storage
facilities and human efforts get controlled under which long time success is maintained towards
business as it also assist to make effectual implementation systematically as with this rate of
working and its efficiency both get advanced that enhance profit and sales ratio.
The management of inventory control is necessary and with this wastage is controlled
that assist to make higher advancement in terms of profit generation as with this ability to gain
higher outcomes is enhanced successfully. The supply chain management also get articulates the
balanced and effective usage by which trenchant and efficient changes is implemented. In this
business make ensure that favourable changes and alteration is induced over regular period of
instance as with this working rate and standards both get advanced over a successful manner.
The major benefit and essentials that is induced with the business is to make adequate
specialisation and in this supermarket get measure and analyse the ensure about the rate of
production that is processed over timely frame. In induced higher production as with this
business get induced different strategies and initiatives and after passes of this situation adequate
functions get implemented in sustained mode. In this business has established better clarity about
warehouse that is circulated around Australia by which strategic move is maintained and in this
systematic designing is induced under which supply chain management and its networking is
getting managed with perfection.
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In order to manage and operate balance within the working standards and performance of
the business there are various theories that get implemented within the business under which
certain framework is developed that furthermore assist to make and generate better outcome as
with this rate of change and attractiveness both get advanced in timely constraint. For this
business make adequate usage of degradable packaging in which sustainability is maintained
towards supply chain as it also help to reduce excess amount of wastage and with this storage
facilities also get advanced through which ability of business to attain higher success and growth
is managed with adequateness. For this it is found that somehow it becomes an essential prospect
under which working effectiveness and balanced is always be essential as with this probability of
working and matching up of standards is developed in constrained mode. It promote the flow of
goods and services as with this adequate transformation of raw resource is processed and
concerted into finished goods and services. It also get involved balanced streamline within which
supply and demand within the marketplace is processed so that production values and its image
is managed that ultimately maintain leads towards gaining and attainment of competitive
advantage and benefits within the aggressive marketplace.
As per its articulation, it is acknowledged that supportive usage of effective supply chain
management by which they have managed and control the working standards with this ability to
maintained sustained knowledge and concern is increases which is always be beneficial through
which appropriate changes and modifications is induced as with this rate of specialisation and
perfection is induced with adequateness. In this the retailing supermarkets as like ALDI make
ensure that throughout modifications and changes is induced under which customers preferences
and demand both get analysed in timely frame. With support of supply chain management ability
of business to make balanced within local and international platform is induced in timely frame.
The local supply and chain management is always be essential and required prospect as with this
working tendency and its credit both get advanced in systematic manner. It enhances the
development and growth of business in competitive marketplace that is also get matched with
demand of consumer through which rate of attraction is managed. In this ability of ALDI to
maintain and develop market trust and believe by which essential growth in marketplace is
developed with continuous period of instance.
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Implications and recommendation
The researcher get to know more about the concept of supply chain management, design,
integration and sustainable management through which ability to maintain clear understanding is
enhanced. As with this researcher also collected appropriate information about certain instance
as with support of secondary research under which balanced target and focus is maintained
towards retail industry that is induced by ALDI. In relation to secondary research, researcher is
able to collect and attain balanced information as from which authentic outcome is resulted in
through which modified level of changes is induced and it has direct impact over working
performance and credibility of business. The researcher collect data that is used by the business
as in form of quantitative and qualitative analysis. In support of this tool business make better
and clear analysis that is used to with support of six sigma, benchmarking, SCOR model. In this
primary data is not collected as with this researcher is not able to contain and collect suitable
form within which researcher is not able to collect adequate information that is furthermore
implemented within organisation with better suitability.
In relation to ALDI and its management they are able to know about various prospect as
with this capabilities of business to maintain clear pathway from which supply chain
management and its practices is implemented with adequateness. In addition to this ALDI is able
to know about the managerial prospect of supply chain and so that with this its ability to produce
better outcome as with timely frame is increases in sustained mode. In this they have manage and
control its working suitability in which customer preferences also get addressed with better mode
and with this local and standardised market supply is managed in systematic manner. In this
ability of a business to control its supply chain and distribution standards is increases as with this
sustained level of growth and development is addressed in terms of sales and profit generation.
For this capabilities to gain higher sales is advanced under which systematic advantage is
implemented as per suitability of market conditions and requirement.
Recommendation
The supply-chain management is an essential prospect for ALDI and with this they are
able to make adequate level of modification under which ability to make productive changes is
induced within the timely frame and with this working standards and its capabilities both get
advanced. In this integration, design and management of supply chain is promoted as with this
ALDI is able to manage and control its supply and demand by which ability to maintain effectual
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flow of product and services is processed in systematic and productive manner. There is few
recommendation for ALDI that is as explained below as:
 The company and its management make sure that automatic purchasing is induced as
with this they are able to monitor and control its supply chain management with this
adequate functionality is induced with perfection. For this they have take adequate
support of software and programming by which ability to place order with perfection or
within the stipulated period of instance is processed in systematic manner.
 ALDI make suitable usage of standardisation and with this long term success and
development is induced as with better suitability. In this sustained time and efficiency
within working standards is maintained through which both time and cost is saved. It is
also be beneficial in relation to employee working standard as with this accurate outcome
is conceived as in relation to team encouragement, reduction of miscommunication and
increases within competitive environment.
 In this management make sure that adequate level of transparency is maintained by which
supply chain is maintained as with this various working system and standards is
enhanced. In this clear understanding is maintained in which inventories informants and
its data is maintained so that better level of transparency is maintained by which financial
losses and its control is induced with perfection.
 In this real time inventory management is induced within which adequate oversees is
maintained that is involved as with this modern tools and techniques get implemented by
which balanced features are added that processed real time visibility so that exact level of
inventory is maintained in effective manner. In this at ultimate stage balanced level of
flexibility is induced that make perfect match within the growth and success of business
as in this unique need and requirement of marketplace is fulfilled with perfection.
 In order to manage performance of ALDI smooth running of operations and functions is
induced by which adequate understanding is maintained in timely frame. In this
performance is induced as by making sustained knowledge through which expense is
maintained so that market spending also get analysed in systematic mode.
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CONCLUSION
It has been concluded from the above report that supply chain management is a process
that produces and processed better knowledge about the transformation of raw materials into
finished goods and with this ability of business to maintain clear success and growth in future
period of instance is developed in accurate manner. It is also be known as the work in process
inventories within which finished goods and services is offered within the marketplace as with
this balanced towards fulfilment of consumption origin is managed. It is an integrated process
that is also be known as process orientation control and planning within which the flow of good
is managed as by maintaining concern towards information collection and management of
effective supply chain by which material and its supply both get operated in balanced mode. In
addition to this the management of business also maintain focus to induce and integrate demand
and supply management through which effective services are flowed in constrained mode.
Moreover, it is acknowledged that in support of supply chain business get maintain various
information as with support of production, distribution, inventories, control and its management
is addressed with perfection and better suitability. In this cost management also be an initiative
that is induced by the business as with this they have assume to maintain sales and profit
credibility in which different possibilities in adequate mode. In this research is processed with
support of secondary approach by which authentic relevance is induced that assist to attain
research objectives with timely frame.
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