Innovation

In order to be sustainable as well as cost friendly, ALDI has multiple tactics that they implement. One, in particular, is that they do not provide free bags, therefore allowing customers to bring their own, and the customers have to bag the groceries themselves. By doing this, ALDI saves money by not having to pay additional employees for bagging and simultaneously reducing the amount of bags wasted or used.

Another tactic that ALDI uses to reduce prices of their products is to have a locking cart system. If a customer wishes to use a cart they must insert a quarter into the cart to activate it, once you return the cart to its place, you get the quarter back. By implementing this tactic ALDI does not need to hire additional employees for going out to collect carts. As a result, ALDI is able to have healthy and high-quality products at an affordable price while paying employees above minimum wage.

Lastly, ALDI considers sustainability in the products they offer and the producers they work with. They have taken sustainability into consideration in ethical working conditions, seafood, palm oil, animal welfare, coffee/cocoa, forestry, textile chemical management and the California transparency act. All of these areas apply to their "Social Standards in Production" which define their minimum social standards applicable to their suppliers and other business partners throughout the entire supply chain.

Inspiration

ALDI's inspiration for engaging in this Sustainable and Efficient Supply Chain Tactics was to ultimately have lower priced goods for their customers while maintaining the health and quality of their products. In other words, the inspiration was to help support those in poverty and low-income families. ALDI believes that everyone should have healthy and affordable products available to them even if the customers have a lower income.

Overall impact

The result of this innovation is that ALDI's products are more affordable yet still healthy and of high-quality. This is very helpful in areas that have higher poverty rates. While organic, healthy, and high-quality products are not cheap, because of ALDI's Sustainable and Efficient Supply Chain Tactics, they are able to have their products at a much lower cost than their competitors. As a result, their short-term effects are that society is able to afford their groceries and products needed to live a healthy life.

The long-term effect of the impact of their sustainability is that they save money, but more importantly, reduce the impact the company has on the environment. From customers bringing their own reusable bags, the innovative cart rental system, to specially designed packaging that doubles as product displays, they are saving materials, time, and creating less waste.

Business benefit

A lot more customers are coming to ALDI because they have the highest quality products at the lowest possible price. Because the business had implemented their tactics, their prices of products have reduced, their impact on the environment has reduced, and their sustainability has increased, leading and driving more customers towards a health and price-conscious supermarket store.

Additionally, due to the lower prices and their cuts on waste, ALDI is able to pay their employees Industry-leading wages, provide comprehensive medical, dental, vision insurance & prescription coverage, generous vacation time & paid holidays, a 401(k) plan with employer matching contribution, short- and long-term disability Insurance, as well as life, accidental death & dismemberment and dependent life insurance.

Social and environmental benefit

Society is affected by people being able to afford the products ALDI provides at lower cost through the tactics ALDI has implemented.

Moreover, the employees for ALDI are affected by how well they are paid and treated/cared for which is possible through the money the business saves.

Lastly, the environment is minimally negatively impacted through the reduction of waste and extra materials that are unnecessary for packaging and deliveries.

Interview

Samuel Bensley, ALDI SUSTAINABLE