Workers in a textile production facility

Suppliers

“For our suppliers, we are a fair and reliable business partner. Together, and in cooperation with other stakeholders, we are committed to improving the living and working conditions throughout the supply chain. We articulate our expectations clearly to all our suppliers and business partners. Together with our suppliers, we work towards increased transparency and continuous improvement within the supply chain.”

CR Principles

Content

A strategy is only as good as its implementation. With regard to sourcing, this means that our commitment to sustainability and responsibility needs to be reflected in our purchasing practices. The majority of our products are not sourced directly from producers, but from suppliers who commission the manufacture or import of the products. Therefore, collaborating with our suppliers is an essential factor in achieving our sustainability goals.

In 2017, we began consolidating our global garment textile supply chain and intensifying discussions with suppliers about Corporate Responsibility (CR)-related topics. As a result, the number of production facilities used by our suppliers in this sector has already decreased by 31%. Thus, our suppliers are able to achieve better capacity utilisation of production facilities, enabling investments in the improvement of working conditions and environmental compliance to pay off sooner. 

To ensure continued compliance with our high standards in the future, new garment textile suppliers must first undergo an auditing and approval process conducted by the responsible CR department. Furthermore, these suppliers are obliged to specify a fixed production facility pool for the production of ALDI merchandise. New production facilities may only be used once we have confirmed that they adhere to our requirements.

At the same time, we have begun to systematically assess our suppliers’ CR performance. On the one hand, we wish to support our business partners in improving their performance. On the other hand, we aim to increase collaboration with those suppliers implementing our CR requirements to a particularly high degree. During the introduction phase, we initially accepted various suppliers of garment textiles and other non-food items into the programme. In the future, we will extend the CR performance assessment programme to include additional suppliers.

The starting point of our CR performance assessment programme for suppliers is a review of all available information on our business partners and their production facilities. In order to evaluate our suppliers’ CR set-up, we analyse a wide variety of information. In doing so, we not only take their plans and CR strategies into account but also query information on personnel resources and organisational structures for the implementation of our CR requirements. For the verification of these information, we use the findings gained during on-site visits conducted as part of our ALDI Social Assessments. As a rule, these on-site visits are conducted by employees of our ALDI CR Units in Hong Kong and Dhaka together with independent auditors and supplier representatives. 

Based on our assessments, we regularly conduct supplier interviews in order to identify potential for improving our suppliers’ CR performance. Wherever required, we support our suppliers in further developing their processes by providing targeted training sessions.

The CR assessment is an increasingly important factor which influences contract placement. In future, we plan to increase our cooperation with those suppliers which fulfil our CR requirements to a particularly high degree and to discontinue our business relationships with other suppliers. Consequently, particularly committed suppliers will be able to expand their collaboration with us by increasing their investments in sustainability. 

Continuously increasing the sustainability of our supply chain is a task we face together with our suppliers. In order to achieve effective changes, we need to steadily enhance the knowledge of our own supply chains and our understanding of the related challenges and opportunities. Therefore, measures for improving transparency are the initial focus of many of our initiatives. By assessing the CR performance of our suppliers, we are taking an important step towards ensuring that we can meet the ever increasing challenges of the future together.

Employees holding a meeting in an office
Image of a hand writing down a note on a clipboard
Three farmers in front of a field

Cycle of the suppliers assessment: In the 1st year, a self-assessment questionnaire is filled in by the suppliers, they are monitored and evaluated. In the 2nd year, suppliers receive an appropirate training, are monitored again and evaluated. Depending on the results, the business relationship with the supplier is either being discontinued or intensified.


Number of ALDI Social Assessments (ASAs) conducted per country of production

Filter:
Turkey 5 Egypt 3 Pakistan 6 India 10 Thailand 1 Myanmar 1 Vietnam 1 Philippines 2 Bangladesh 57 China 216 5 3 6 10 1 1 1 2 57 216
Please find all information in the table view.
Country Number Share
China 216 71.5%
Bangladesh 57 18.9%
India 10 3.3%
Pakistan 6 2.0%
Turkey 5 1.7%
Egypt 3 1.0%
Philippines 2 0.7%
Myanmar 1 0.3%
Thailand 1 0.3%
Vietnam 1 0.3%
Please find all information in the table view.
Please find all information in the table view.

ASAs are audits of production facilities that are carried out by ALDI SOUTH employees together with external auditors and supplier representatives mainly in Bangladesh and China.

Sustainable Development Goals

1 No poverty 3 Good health and well-being 4 Quality education 5 Gender equality 6 Clean water and sanitation 8 Decent work and economic growth 9 Industry, innovation and infrastructure 10 Reduced inequalities 12 Responsible consumption and production 16 Peace, justice and strong institutions

GRI disclosures

Organisational profile

Management approach

Child labor

Forced or compulsary labor

Human rights assessment

Supplier social assessment