SUPPLIER INFORMATION PACK ALDI SUPPLIER INFORMATION PACK 2
Welcome to Aldi The following document provides a guide for new suppliers about the history of Aldi – how we started, our growth and plans for the future. Contents Overview 4 Account management 15
Our philosophy 5 Terms & Conditions 17
Our journey so far 6 Administration 21
Who’s who in Aldi? 8 The supply chain 23
Pre-tender. Tender. Launch! 11 Quality & CR 25
Product life-cycle 12
Artwork & packaging 13 ALDI SUPPLIER INFORMATION PACK 4 Overview
Our store model is built on creating efficiencies at every level – from store construction, to Every aspect off distribution, to the specific products we stock. our operation hashaas Our success shows we are as much a philosophy been rethoughthtt as we are a supermarket. and reinventedd tot Every aspect of our operation has than 805 stores in the GB and over maximise the qualityquualit y been rethought and reinvented to 134 in Ireland. By focusing on the of our productstss maximise the quality of our products integrity of our business plan and and savings for our customers. the satisfaction of our customers, and savings fororr employees and partners, we’ve our customerss We began our UK operation in 1990 become the nation’s leading with our first store in Stechford discounter and the fifth largest in the West Midlands. Since then, supermarket with a 7% share of we’ve grown into a multi-billion the market. pound retail business with more ALDI SUPPLIER INFORMATION PACK 5 Our philosophy
Our unique business model enables us to provide the highest quality products at the lowest possible prices.
This value stems from the numerous efficiencies and innovations we’ve introduced at every level of our operation.
Our stores offer our customers over 1,800 of the most commonly purchased fresh and ambient products, in a smaller, more manageable environment designed with sustainable, long-term savings in mind. ALDI SUPPLIER INFORMATION PACK 6 Our journey so far (or a ‘potted history’!)
1914 1954 1962 1967 1990 1999 2017 2022 Anna Albrecht They opened their “Albrecht Discount” More than 200 Aldi Opened our first Opened our first Aldi becomes Aldi to have opened opened a small first self-service was shortened South locations. store in the UK. store in Ireland. Britain’s fifth biggest its 1,000th store in food store in store – a first to Aldi. supermarket. the UK by 2022. Essen, Germany. in Germany. Newest region in By 1948, her sons Cardiff opens. took over the business and expanded to four locations.
AL brecht + DI scount ALDI ALDI SUPPLIER INFORMATION PACK 7 Where you’ll find us… 805+ UK stores
134+ BathgateBathgate Ireland stores DarlingtonDarlington
2 BoltonBolton GoldthorpeGoldthorpe Ireland 10 distribution GB regional centres NaasNaas NestonNeston distribution centres 1000 AtherstoneAtherstone stores MitchelstownMitchelstown by 2022 ChelmsfordChelmsford CardiffCardiff SwindonSwindon SheppeySheppey openingopening mid-2019mid-2019 ALDI SUPPLIER INFORMATION PACK 8
Who’s who in Aldi? ALDI SUPPLIER INFORMATION PACK 9 Buying
Our UK Buying Office is based in Our Buying Directors report to a Atherstone, Warwickshire. We also Group Buying Director who is your Our Buying Directors have a separate Scottish Buying “Senior Buyer” under the terms Office based in Bathgate, whose of The Groceries Supply Code of are supported by focus is to source locally produced Practice (GSCOP) in the UK. Buying Assistants, products for selling in our who will handle your Before we agree a supply Scottish stores. agreement (contract) with yoyou,u, day-to-day enquiries In Naas, County Kildare, we have our we will send you our Terms & Irish Buying Office that concentrates Conditions of Purchase alongng on buying Irish produced products with all supporting documents.me nt s. and products that are more suited to This will include the contactt detailsde ta il s the Irish market than the UK. of our Trading Departmentsts whow ho area re responsible for placing day-to-dayy- to -d ay Each of our Buying Directors are orders and maintaining availabilityva il ab il it y responsible for a number of product for our stores. categories. They are supported by Buying Assistants, who will handle your day-to-day enquiries. ALDI SUPPLIER INFORMATION PACK 10
Trading Each of our Regional Distribution Centres has a Trading Department headed up by a Trading Director.
Each Trading Director has numerous The Trading and Buying teams Trading Assistants reporting to them work closely together to ensure who are responsible for placing our forecasted volumes are as accurate daily orders with you, confirming as possible and to discuss any delivery times and handling any challenges that may occur. delivery queries you may have. ALDI SUPPLIER INFORMATION PACK 11 Pre-tender. Tender. Launch! “The Right Product at the Right Price”
NPD & Market Pre-tender Tender Buy & Deliver Launch
STAGE Opportunities
1 New Idea 1 Scope out market/ 1 Create tender and 1 Award business 1 Go live 2 Refresh existing Competitive set issue to supply base 2 Engage design agency 2 Monitor performance 3 Quality/Cost improvement 2 Scope out supply base 2 Communicate benchmark and Technical Service 3 Review performance Provider (TSP) GOAL 4 Discontinue lines/gap fill 3 Establish product 3 Tender sample “must haves” 4 Determine benchmark
• Range analysis to • Identify: • Tender sent via Aldi • Supplier confirmed • Fixed date review highlight issues - the opportunity Tendering Platform • Design and artwork • Review: • Market data to - the market position • Final product/ process starts: - week 1 sales highlight trends - commodities position supplier selected - artwork sign off - month 1 sales - the benchmark • Full competitor review - technical sign off - the product specification • Fit for use/ • Provide performance to identify gaps - merchandising benchmark testing • Full product approval update TASK • Supplier info to - case mix including production • Regional feedback samples and technical file highlight New Product - design elements • Customer service feedback Development/specification • Set out goals/objectives • Inspection at source (non- improvements food special buys only) • Retrieve initial commercials • Regional communication ALDI SUPPLIER INFORMATION PACK 12
Packaging Service Provider Buying Director Who’s Technical Service Provider Buying Assistant Project Manager involved
Supplier in the QA Department product Packaging Specialist life cycle? Technical Service Provider Advisory Assistant
Designer Photographer ALDI SUPPLIER INFORMATION PACK 13
Artwork & packaging ALDI SUPPLIER INFORMATION PACK 14
Technical Service Provider What is the Brand/ generates clearance Packaging benchmark? to supply (CTS) Final Colour Accurate Design stage 1/2/3 Î Proof (CAP) approved Design, Buying Director approval
1st artwork amends ÎBuying artwork and Buying Assistant raises Director, Supplier, Technical Product Advice Sheet (PAS) – Service Provider approval packaging – include all product claims 1st artwork ÎBuying the process Service Provider Director, Supplier, Technical generates critical path Service Provider approval and sends to supplier
Technical Service Provider Supplier to complete electronic generates pack copy ÎBuying specification (eSpec) including Director approval all nutritional, Corporate Responsibility (CR) and cooking information ALDI SUPPLIER INFORMATION PACK 15
Account management ALDI SUPPLIER INFORMATION PACK 16 Account management To assist Aldi in an efficient manner, we appreciate the following qualities in our supplier Account Managers:
Familiarisation with Taking Responsibility and Proactive Not Reactive Meeting Deadlines Aldi Procedures Accountability for Supply Issues
• Who’s Who (responsibilities) • Inform Buying of availability • Sample requests • Ensure availability through issues in a timely manner proactively monitoring Aldi • Pre-tender/Tender/ • Pre-tender/Tender stock holding at platforms Sampling timescales • New product development • Design Agency and Technical • Goods Receiving Guidelines • Provide regular updates on retail Service Provider critical path activity within the market • Design Agency and Technical • Regional booking slots Service Provider process
Product Development (NPD) Communication to be In-depth Category Knowledge Accessibility During and in line with the Market, Clear and Concise and Provision of Market Data Outside of Working Hours Understanding Our Business Strategy
• Provide regular market data • Providing an emergency contact for out of hours • Responding to requests in a timely manner ALDI SUPPLIER INFORMATION PACK 17
Terms & Conditions ALDI SUPPLIER INFORMATION PACK 18
Terms & Conditions & Ancillary Documents Aldi asks all new suppliers to sign The Terms also incorporate the up to its Standard Terms and Groceries Supply Code of Practice, Conditions for the Purchase of the Irish Regulations and the Bribery Goods and the associated Ancillary Act 2010. In addition to the Terms Documents. These will be sent to and Conditions, you will be asked you by the Buying Department at to review a number of Ancillary the beginning of the new supplier Documents which provide more process. Aldi’s Terms and Conditions detail on the day-to-day policies lay out how Aldi does business with involved in supplying goods to Aldi. its suppliers on the ground. ALDI SUPPLIER INFORMATION PACK 19
Document Register Program (DRP) Document Register Program (DRP) is used to e-mail all official documentation to suppliers.
All of the e-mails you receive will come from the DRP e-mail address: [email protected]
Some examples of documents you can expect to receive from the DRP are:
• Terms & Conditions and Ancillary Documents • GSCOP Documents • Aldi’s Quarterly Supplier Bulletin • Christmas and Easter Delivery Windows • Supplier Guidelines for our Corporate Responsibility ALDI SUPPLIER INFORMATION PACK 20
The Groceries Supply Code of Practice (GSCOP) came into Groceries Supply force on 4th February 2010. It applies to all retailers with grocery sales over £1 billion and ensures that retailers Code of Practice deal with their suppliers fairly and lawfully at all times. Aldi takes pride in its compliance with the Code, ranking as the best (GSCOP) performing supermarket for compliance for the fifth year running in 2018. All Aldi employees who have regular contact with suppliers receive GSCOP training on a yearly basis and regular meetings are in place between The Groceries Code Adjudicator (GCA) and Aldi to ensure our continued compliance with the Code. Aldi sends its GSCOP newsletter to all suppliers twice a year, explaining any changes to the code as well as updates on Aldi’s performance in the yearly GCA Survey. ALDI SUPPLIER INFORMATION PACK 21
Administration ALDI SUPPLIER INFORMATION PACK 22
Electronic Funds Transfer/BACS Invoicing Orders & Invoicing
Aldi prefers to pay its suppliers As a supplier of Aldi, you can expect We work with our supply base to electronically. Enclosed in your to be invoiced for all reasonable ensure all orders are provided in a new supplier pack, you will receive costs, fees and expenses properly timely manner to enable availability. an invoicing information form incurred in relation to the supply You will receive orders and will which you will need to complete agreement (contract) and product, be asked to invoice for delivered and return. Once the setup is this can include product design, products using Electronic Data complete, your invoices will be packaging design, artwork, product Interchange (EDI). We offer our paid electronically with the funds testing, etc. suppliers the option to integrate released on the due date. The funds our EDI solution or, for those can take up to three working days ALDI’s nominated brand suppliers who trade less frequently, management team and technical to clear. to use our Web EDI solution. service provider will invoice you, the supplier, directly upon If you have any questions completion, of design, artwork related to EDI, please contact and product testing. [email protected]. ALDI SUPPLIER INFORMATION PACK 23
The supply chain ALDI SUPPLIER INFORMATION PACK 24
Availability Deliveries Logistics
At Aldi, availability is paramount. At Aldi, we are continuing to We work with our supply base to With only 1,800 SKUs in our range, develop our estate as our business ensure that they have an efficient not having stock on the shelf for grows from strength to strength. and cost-effective delivery solution even a day can make the difference In the UK, we have eleven RDCs when working with Aldi. Whether for customers being able to pick up including eCommerce and two in that is using your own logistic their full shop or not. That can affect Ireland. You will be asked to deliver partners or Aldi’s preferred primary our customer satisfaction, our sales seven days a week to an agreed network – there is a simple solution and our reputation. That’s why we Minimum Order Quantities (MOQ) if for all your products, no matter take availability so seriously. you supply. where they come from in the world.
Regional Quality Control Communications Questions
Our Regional Quality Control teams Continued engagement and If you have any concerns, queries or are on hand to ensure that only the communication is at the heart of what need any support with developing finest produce and highest quality we do. Working with our Corporate the right solution in your supply products make it to our stores. This is Logistics Team, we can ensure that chain then please ask your Buying the final check before the products you have the right information when Director to put you in contact with leave the RDC. starting your journey with Aldi; if our Corporate Logistics Department. it’s challenges with case mixing to getting the product to the right port - they have the expertise you need to deliver these requests. ALDI SUPPLIER INFORMATION PACK 25
Quality & CR ALDI SUPPLIER INFORMATION PACK 26 Quality & CR: food
Aldi is committed Ethical Sourcing Certification Requirements to maintaining the Aldi is committed to human rights and fair labour for Site Manufacture practices throughout our supply chain. We expect highest quality You will be requested to provide the following: of materials and all suppliers to comply with the Social Standards in Production contained within Aldi’s Corporate • All sites of manufacture producing Aldi brand food production processes. Responsibility Principles and to adhere to all products must be certificated to a Global Food Safety It fully expects that requirements of the Aldi UK and Ireland Social Initiative (GFSI) benchmarked scheme, e.g. BritishRetail this commitment is Monitoring Programme (SMP). Consortium (BRC) Global Standard for Food Safety followed throughout • If your site of manufacture, packing or bottling Product Specification does not have certification to a GFSI scheme, please its supply chain. As a Product specifications are captured in an Electronic inform your Aldi Buying Director immediately socially responsible Specification (eSpec) system managed by the TSP on • GFSI certification in English behalf of Aldi. Product specification information must company, it is of critical • GFSI audit report in English importance for Aldi to relate to the site of the manufacturer. Information must be accurate as this will be used to generate pack • Site manufacturing details know that our products copy & substantiate product claims. • Site packing details are safe for our (if different to the manufacturing site) consumers. • Certificate must be within scope and valid for manufacture ALDI SUPPLIER INFORMATION PACK 27 Quality & CR: food
Clearance To Supply (CTS) Aldi Polices Product Testing
The CTS is issued once the TSP is Suppliers must comply with all Aldi has a comprehensive product satisfied that: relevant Aldi policies. It is the testing due diligence programme. supplier’s responsibility to make Products are tested for compliance • The site of manufacture meets sure they familiarise themselves with the agreed specification and Aldi certification requirements with our policies and in turn brief legality at first production and whilst • Legal requirements and Aldi their manufacturing sites. on sale. You must provide product policies are complied with samples from first production for testing by the Technical Service • The product is supported by an Costings Provider. You will be notified of any approved specification Costs for approval and due issues identified during the product • Artwork is approved. The CTS will diligence will need to be met by testing due diligence programme. be valid for a defined period you, the supplier. ALDI SUPPLIER INFORMATION PACK 28 Quality & CR: non-food & textiles
Aldi is committed Ethical Sourcing to maintaining the Aldi is committed to human rights and fair labour highest quality practices throughout our supply chain. We expect of materials and all suppliers to comply with the Social Standards in Production contained within Aldi’s Corporate production processes. Responsibility Principles and, where relevant, It fully expects that to adhere to all requirements of the Aldi UK and this commitment is Ireland Social Monitoring Programme (SMP) and Detox Commitment. followed throughout its supply chain. Supplier Approval
As a socially A Technical Service Provider (TSP) working on responsible company, behalf of Aldi will contact you, the supplier, and it is of critical request all relevant information relating to your product. All suppliers must receive a Clearance importance for Aldi To Supply (CTS) for each product before supply to to know that our Aldi starts. New suppliers and/or production sites products are safe for are subject to an Aldi approval audit. our consumers. ALDI SUPPLIER INFORMATION PACK 29 Quality & CR: non-food & textiles
Product Specification
• Complete and submit Supplier Questionnaire: Non-Food & Textiles
• TSP receives a Product Advice Sheet (PAS) from Aldi UK. TSP will provide details of the product approval process and critical path and any applicable quality manuals • TSP will contact the supplier and request the following (this may vary depending on product): – Product specification - to also substantiate product claims – Artwork – Component List (Critical & Internal) – Risk analysis - Hazard And Risk Management System (HARMS) and Hazard Analysis and Critical Control Points (HACCP) – Copy of instructions and user guides – Warranty/guarantee details – Physical sample of product – Factory Quality Management Systems (QMS) / quality controls – Any existing testing certificates (dated within 1 year of submission) ALDI SUPPLIER INFORMATION PACK 30 Quality & CR: non-food & textiles
Certification Clearance to Supply The CTS will be valid for a defined Costings period. Where an Final Random Requirements The TSP will confirm Regulatory Inspection (FRI) is performed and Costs for approval and due for Site Manufacture Requirements and any non the result is acceptable, the TSP will diligence will need to be met by conformance in the documentation issue the CTS for you to ship the you, the supplier. Supplier manufacturing sites must supplied. The CTS is issued once the product. comply with Aldi technical audit TSP is satisfied that: Product Testing requirements for all commodity ** Please note the Final Random Inspection (FRI) will be performed at the site of manufacture. groups for non-food core/hard lines • The site of manufacture meets Aldi Any products submitted may be and textiles. certification requirements Aldi Policies subjected to ongoing performance testing and evaluation. • Legal requirements and Aldi Suppliers must comply with the policies are complied with relevant Aldi policies. It is the • The product is supported by supplier’s responsibility to make an approved specification sure they familiarise themselves and meets all relevant quality with our policies and in turn brief performance requirements their manufacturing sites.
• Artwork and instruction manuals are approved For more information, please visit our supplier website at: www.aldi.co.uk/suppliers