Competitive advantage through efficiency An Aldi case study
Page 5: Benefits of lean production
Aldi’s ‘no-nonsense’ approach to retailing therefore leads to cost saving in numerous areas. These cost savings are passed on to customers in the form of lower prices, allowing the business to differentiate itself from its competitors in terms of price, as well as the quality of the products it has on offer.
Corporate social responsibility
Also, as money is not wasted on unnecessary expenses, Aldi is able to allocate spending to other important elements of its business. For example, Aldi is also focused on corporate social responsibility(CSR). These are Aldi’s wider responsibilities to society, its employees and the community. Aldi also works with many different charities. For example, in 2011 Barnardo’s was Aldi’s charity of the year.
Working with suppliers
Through using a total quality management approach, Aldi is able to create strong business relationships with its suppliers. These strong relationships help Aldi to continuously improve its product offering whilst also ensuring suppliers meet international standards. Aldi’s international standards go beyond consumer legislation and nutritional information. Products are carefully labelled for consumers so they can make informed choices, this all supports Aldi’s continuous improvement culture.