Aldi Edition 16 Full

Topics: Lean manufacturing, Quality management, Lean software development Pages: 4 (2230 words) Published: December 4, 2014


Page 1

Competitive advantage through efficiency

Curriculum Topics
• Lean production
• Reducing costs and
eliminating waste
• Benefits of lean production


Aldi has a no-nonsense approach to running its business. Whereas other food retailers have elaborate displays, additional services

The food retail industry is a highly competitive market. More so

and promotions that draw customers into the business, Aldi’s

than ever, organisations need to offer customers value for money.

core purpose is to ‘provide value and quality to our customers

Customers want the best quality products at the lowest possible

by being fair and efficient in all we do’. Everything Aldi does is

prices. With such tough competition it is vital for organisations to

focused around giving its customers value for money.

understand what their customers want. Aldi understands that its customers want value for money but do not want to compromise

Through being efficient and cutting costs Aldi can then invest

on quality. This case study will demonstrate how Aldi uses a lean

profits back into the business. They can then be used to further

approach to its business operations to offer its customers quality

meet its business objectives for growth. Efficiency is not

products at competitive prices.

something that is achieved overnight. Lean thinking is a
continuous process that constantly enables Aldi to improve the

Since opening its first store in 1913, Aldi has established itself as a

way in which it meets its business objectives. This enables Aldi to

reputable retailer operating in international markets including

develop an ambitious investment programme to develop new

Germany, Australia and the U.S. Aldi has over 7,000 stores

properties and suppliers as well as to provide benefits for

worldwide. What distinguishes Aldi from its competitors is its


competitive pricing...
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