Aldi has brought a global sourcing division into talks with some UK suppliers in a move intended to drive efficiencies of scale.
Aldi Global Sourcing, based in Salzburg, Austria, takes the lead on procurement of products sold in more than one country by the discounter, with tinned and dried pulses among examples from the UK.
The aim is to give suppliers bigger volume sales while letting Aldi pass lower prices on to shoppers. It also means savings for suppliers, including through harmonised product and packaging specifications across markets, potentially making it easier for them to increase production capacity, according to Aldi.
Aldi Global Sourcing was created in 2019 but has grown and partnered more closely with individual country buying functions – including in the UK – over time. It has a satellite office in Verona, reflecting the volume of products procured in Italy for Aldi across markets, such as pasta and oil.
According to Aldi, individual country buying teams, including the UK’s, continue to procure the overwhelming majority of products for themselves. They also retain responsibility for category and range management, ensuring the offer is right for the individual country, even where Aldi Global Sourcing has led on procurement.
It means suppliers dealing with Aldi Global Sourcing still have “the visibility and partnership they are used to with the UK buying team”, according to a spokesman.
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Source: The Grocer
Date: 28 February