A Report on Operation Management, Strategies and Techniques at Aldi

This report analyzes Aldi's operation management strategies, focusing on techniques such as total quality management (TQM), lean manufacturing, and just-in-time (JIT) inventory management. It discusses how Aldi has achieved competitive advantage through efficiency in its business operations, particularly by maintaining cost advantages in a competitive market. The report highlights Aldi's commitment to quality, safety, and nutritional benefits, as well as its efforts to minimize waste and maximize productivity through lean manufacturing processes. The implementation of JIT helps Aldi manage in-store holdings and reduce warehousing costs. The report concludes that effective strategies and continuous improvement are essential for Aldi to sustain its market position and profitability amidst increasing competition. Desklib provides students with access to similar solved assignments and study tools.

Operation
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Aldi is the common brand of two German family supermarkets which has operated more than
100000 stores in 20 countries of the world. The management of the organisation has reportedly
try to achieve competitive advantage by developing efficiency in their business. The
management of the organisation has used different production technique such as total quality
management, lean manufacturing approach and just in time (Dey, Devarapalli and Márquez,
2021). These are the mos,attractive manufacturing process which is used by many companies to
achieve efficiency in their business.
TASK
From the past many years, the management of the Aldi has achieved great heights in
their business and spread their business in many countries. The reason for the success of the
organisation in the market is their effective management and production technique. But from the
past few years, the level of competition are increased in the market due to the presence of some
big and dominating players in the markets. These players of the market has achieved huge
customer base and develop price war in the market by providing their product at lower prices.
This situation of the market has negatively impacts on the profit margins of Aldi.
The management of the company never reduces the prices of the product and focus on the
cost advantage so that their products can be positioned in market at competitive market and their
profit margins remains unaffected. There are some production technique are used by the
management and the brief discussion related to the same are given below:
Total quality management
It refers to the continuous efforts of the company under which the management of the
organisation has develop effective environment in the organisation where the employees
continuously improves their performance and achieve the efficiency in their work (Pu and
Zhang, 2020). Under this technique the management of the organisation has to provide
considerable resources to the employees on time so that the wastage of time can be minimise.
The main focus of the company are based on the concept of proper utilisation of resources to
achieve their goals and objectives effectively.
The management of the Aldi has try to gain competitive advantage by focusing on cost of the
product. It is important for the management of the organisation that to develop effective

strategies in the organisation and then communicate to all the employees so that all the
employees has aware about the work.
Aldi defines itself as a discount chain selling quality goods for the best price. It states that
product
quality includes consumer safety, health and well-being:
• Ensuring products meet nationally recognized standards for quality and safety.
• Providing clear information and labelling.
• Maximising the positive nutritional benefits of their products.
• Minimizing the negative impact of their products.
Lean manufacturing process
It is related to those process of the production under which the management of
organisation has develop effective ideology to maximising productivity and then reducing the
wastage from the business. It is one of the most important and commonly used technique which
is used by many companies (Tang, 2019). Under this techniques, the main focus of the business
are based on development of those methods in the organisation which helps to reduce the
wastage in the production technique. The employees of the organisation has an guidelines to use
the resources effectively so that their wastages can be minimised. It is the duty of the
organisation to use new and modern technology in the process of production so that all the
employees of the organisation becomes efficient.
The management of the Aldi uses Lean manufacturing process to cut the cost of the
business. It is very essential for the management of the organisation that they use this techniques
because it is essential for the cost advantage and also for the competition in the market. The
organisation has uses new and advanced technology so that the efficiency can be increase.
Just in time
Aldi uses a store management approach of Just In time which helps the organisation to manage
its in store holdings and stock. The Just in Time techniques has a basic motive of getting the raw

materials for further processing at the right time when they are required and also in the right
quantity. This helps organisation to save cost of warehousing. In order to save the storage and
warehousing cost, it is essential for the Aldi to adapt Just In time technique. Hence, Aldi buys
products as raw materials only as and when they are required. Also, Aldi does not focus upon
investing upon stocks which require to be held for a long time. As a result, the organisation saves
its several costs in terms of warehousing along with deployment of additional staff that would be
required in order to monitor the goods as well. The stocks at Aldi arrives in display ready cases
and hence which is quite handy to line up on the shelves. This is a very efficient way of getting a
large volume of product in the shop quickly. This proves that Aldi works upon a no nonsense
approach in order to save several costs and due to this it is able to transform its benefit towards
its customers.
CONCLUSION
It is concluded from this report that it is important for the management of the organisation that
they analyse the competition in the market and then develop effective strategies to deal with.
The management of the organisation has used different production technique such as total quality
management, lean manufacturing approach and just in time are concluded in this report
(Поліщук, 2020).

REFERENCES
Books and Journals
Asanka Basnayake, B.M.Y., 2019. Impact of operation management practices on business
performance with special reference to small and medium retails business in Kurunagala
district (Doctoral dissertation, Faculty of Commerce & Management).
Dey, B., Devarapalli, R. and Márquez, F.P.G., 2021, August. Selection and scheduling of DG
sources for environomic operation management of a microgrid system. In International
conference on management science and engineering management (pp. 530-542).
Springer, Cham.
Pu, M. and Zhang, Y., 2020, June. Research on the Optimization of Teaching Operation
Management Process in Colleges and Universities Based on IE. In Proceedings of the
2020 The 4th International Conference on E-Education, E-Business and E-
Technology (pp. 37-42).
Tang, X., 2019, February. Application of the Big Data Technology in the Chain Operation
Management. In The International Conference on Cyber Security Intelligence and
Analytics (pp. 345-350). Springer, Cham.
Поліщук, В.В., 2020. Model of Operation Management Systems Risk Assessment.