Aldi Seeks Cost Transparency from Suppliers

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November 22, 2011

Aldi is asking its suppliers to provide more detailed information on delivered products so it can better manage supply chain costs, according to Planet Retail, which quoted a report in Lebensmittel Zeitung, a German trade publication.

The German hard discounter is seeking more transparency in its supply chain for all food and non-foods products so that it can better target potential savings. A majority of suppliers provide a single cost to Aldi, which already bundles in transportation and logistics costs. In the future, Aldi is asking suppliers to break out the hard costs of the product from other supply chain expenses.

As Aldi reviews supplier bids, it will target manufacturers with high transportation and other logistics costs and ask them to switch to more economical service providers to bring costs down.

Aldi Süd sent out a letter to suppliers several weeks ago announcing the new initiative and product cost specifications, according to Lebensmittel Zeitung.

It is unclear at this time if the initiative will apply to Aldi’s U.S. division.

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