Enhancing Global Alignment and Sustainable Procurement

Executive Summary

WAVE provides comprehensive support to businesses in various locations, considering a holistic approach beyond simple cost comparisons. This includes factors such as emissions, energy expenditure, and operational impact. WAVE successfully organised and analysed independent testing, developed internationally aligned specifications, and calculated the Total Cost of Ownership (TCO) for refrigerated display cabinets for ALDI Süd’s international procurement group.

Creating standard international specifications was a complex task, given ALDI Süd’s diverse operating environments. WAVE acquired a leading role within a working group comprising refrigeration and merchandising experts from each ALDI Süd region. The goal was to capture individual requirements and summarize them within an aligned tender specification. This effort proved successful for both freezer and chiller cabinets, with the resulting specifications forming the foundation of ALDI Süd ‘s international cabinet standards.

After the specification alignment stage, the tender process itself was realised by developing adaptable calculators and providing customized recommendations based on individual outcomes for different countries. By considering factors such as energy efficiency and best value, ALDI Süd was empowered to make informed decisions that will ultimately result in a reduction of emissions across their estate.

Figure 1: Aldi Süd worldwide presence

Introduction

WAVE’s support encompasses a range of businesses operating in different areas. Our tenders go beyond cost comparisons, incorporating factors such as emissions, energy expenditure, and operational impact.

ALDI Süd is a global retailer known for providing high-quality products at affordable prices. With a strong emphasis on efficiency and customer satisfaction, ALDI Süd has carved out a prominent position in the retail industry. Currently Operating in 11 different countries, ALDI Süd offers a diverse range of goods, including groceries, household essentials, and specialty items. Sustainability is a core value for ALDI Süd. The company strives to minimize its environmental impact by implementing eco-friendly practices throughout its operations, including efficient energy usage, waste reduction, and responsible sourcing. ALDI Süd actively supports initiatives that promote sustainability and social responsibility.

The ALDI Süd international tender for chilled and frozen cabinets demonstrates a great example of WAVE working in partnership with our client to consider a range of important factors that impact their business as well as the natural environment.

The Challenge

ALDI Süd ‘s international procurement group, IDPC, sought global alignment in their procurement processes, conducting tenders worldwide for refrigerated display cabinets. WAVE was engaged to assist in aligning international specifications, managing submissions and technical queries. To create standard international specifications alone was not a straightforward task, ALDI Süd consists of a range of 11 different countries, all operating differently from one another, whether that’s refrigeration system types, look and feel of cabinets, method of installation or a myriad of other influences.

Figure 2: Refrigerated Display cases in Aldi UK

Implementation

To solve the complex challenges associated with this project WAVE led a working group consisting of refrigeration and merchandising experts from each ALDI Süd region. The  aim of this working group was to capture all individual requirements necessary and summarise this within an aligned tender specification. This was successfully completed for both freezer and chiller cabinets; the specifications were also retained by ALDI Süd and now form the backbone of the cabinet specifications internationally.

Once the individual countries requirements were captured, WAVE progressed to the supporting the global tendering of the refrigerated display cabinets. Potential suppliers of refrigerated display cases were researched and approached for costs. Costs were obtained for standard refrigerated cabinets to meet ALDI Süd’s international specification. Then each countries unique requirements were also quoted by each participant. The next challenge was  presenting this complex data the data in simple and effective way. To do this WAVE created a specialized calculator specifically designed for ALDI, which empowers them to thoroughly estimate costs for multiple scenarios. This calculator enables ALDI to experiment with different suppliers, discounts, warranties, and other variables, and instantly see how these changes affect the overall cost.

The final step was to take this purely beyond a costing exercise. This involved WAVE getting the refrigerated cabinets independently test to verify the stated energy performance. This allowed for energy consumption to also be viewed within the TCO comparison There was also a working group created with ALDI’s incumbent consultants with the task of reviewing the maintenance requirements and access of each participants equipment.

Once this was concluded WAVE produced a comprehensive report, outlining recommendations for each country based on the total cost of ownership of the equipment.

Figure 3: Bespoke calculator example  

Through TCO analysis, WAVE integrated complex modelling, empirical test data, purchase and discount plans, and construction schedules into accessible visualizations. Our real-time calculator allowed ALDI Süd to cost multiple scenarios, modifying variables such as suppliers, discounts, warranties, and more. This empowered ALDI to make informed decisions leading to energy-efficient and cost-effective display cabinets, reducing emissions estate-wide.

ALDI Süd were notably pleased with how we aligned with their vision and method of global alignment, stating:

“WAVE provided valuable support to the international chilled and freezer cabinet tender involving ALDI Süd countries. This forms a significant part of our aim to internationally standardise energy efficiency, quality, and cost in procurement. WAVE facilitated the project by providing tender analysis that highlighted the associated capital and operational costs and energy consumption to ALDI following different solutions. This aided ALDI in making informed decisions providing best lifetime value and quality.”

Richard Conway, National Property Director

Figure 4: Total cost of Ownership analysis  

Conclusion

ALDI expressed satisfaction with the alignment between WAVE and their global vision, emphasizing our valuable support in standardizing energy efficiency, quality, and cost in procurement. WAVE’s tender analysis highlighted associated capital and operational costs, as well as energy consumption for ALDI, aiding in decision-making for best lifetime value and quality. The collaboration demonstrates our commitment to comprehensive support and sustainable procurement efforts.

WAVE have also been involved in cost and energy related exercises in other areas, perhaps you’re looking for help with one of the below, or something completely different, just ask!

• Independent Total Cost Reviews – specialist performance modelling and real-world costing of various system types and architectures.
• Benchmarking Exercises – breaking down intricate real-world projects into their core deliverables and exploring where your costs stand against others.
• Feasibility Reviews – have you been told about a new technology but not sure what it does or what difference it will make? We can make sense of it.