Supply Chain Management Assignment 3 : Logistics Strategy Of Lidl & Aldi

• 1. Study the mission or the corporate strategy of two different organizations.

In this case , I chose to study two companies are: Lidl and Aldi are companies Hard Discount ( self-service store primarily food is characterized by the sale price below the average a small supermarket and a limited assortment of products (average of 600 sqm for less than 1000 products). )

Firstly, brief presentation of two brands:

• Lidl is a German company based discount stores in 1930 and present in all countries of the European Union , with the exception of the Baltic countries.

• ALDI is a string of hard- discount stores originally based in Germany. The group is a family business founded in 1913 in a popular district of Essen by the mother of Theo and Karl Albrecht . After the Second World War , both son take charge of the family store , and gradually develop into an international chain .

The ALDI strategy exposes several points:

 Reduced costs down with a choice limited radius . Each store has only 800 references radius . The products are made for ALDI and reducing margins. Fresh products are a minority in the proposed ranges.

 The products are presented gross on the shelves , like a warehouse, thus reducing the cost of implementation , their distribution and disposal are attached to the letter and never change, also for cost reduction presentation . The price is imposed on suppliers

 Employees : Labour costs reduced to a minimum. Hostesses crates must put products up and clean the store. ongoing surveillance and intimidation of its employees. She dismisses employees who are not flexible enough or are not sufficiently conform to the model.

 Non-existent communication. The group is content to broadcast an ad in newspapers including some price associated with their products .

Lidl 's strategy is as follows:

 Minimalist to reduce costs and offer products at very low price concept . Since 2007, domestic brands are alongside Lidl products. And the reference number from 900 to about 1300 references , which allows him today to show a growth of over 10%

 Style rude management or illegal in order to minimize costs.

• 2. How do they mention the strategic role of logistics or the supply chain management in their statements?

Note that for both companies, logistics is very important and occupies a prominent place within the company and in these strategic decisions. Indeed, these two companies are looking for the best way to reduce costs, and logistics is part of a key area for this type of business.

We can see that these companies are looking for new logistics and means to optimize its current system to save money

For example we can see that Lidl in France to invest in a new platform to optimize logistics and reduce costs associated with it. Another example, Lidl has introduced a new system that covers all stages of the process in the warehouse, receiving goods through the palletizing, buffer storage, picking, sequencing and palletizing as needed to stocking dry goods and temperature controlled.

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