Lidl Asia: November 2022
Lidl Asia: November 2022
Introduction
NOVEMBER 2022
ABOUT LIDL ASIA
WE ARE PART OF
4TH LARGEST RETAIL THE SCHWARZ GROUP GERMANY
+133.6b EUR 13,450 32 550,000 >200
CHAIN WORLDWIDE
Schwarz Group Stores Countries Employees Distribution Centers
Annual Turnover
OUR HISTORY
2017 2021
Entered into Lidl Asia HQ in Singapore
the US market Merger of Kaufland Hong
1930 Kong and Lidl Asia
Grocery 2006
New market position:
Outstanding value
for money
1980
Start of massive
expansion
1973 all over Europe
EFFICIENT SUSTAINABLE
SIMPLE
Source: GfK Consumer panel Germany 30.000, FMCG MAT Dec 2017
ASSORTMENTS
PROMOTIONAL SALES
IN OUR STORES
Promotional baskets with unique or multiple
products inside.
Promotion based
1 Order = 1 Shipment
High Volumes
Apparel & Footwear, Hardgoods and Food Lidl Asia Pte. Ltd. HQ
divisions develop products for Lidl International
22nd, 25th, 27th Floor, ICC
1 Austin Road West
Sourcing from over 12 countries across Asia Hong Kong
2 Agents:
- ANR in Sri Lanka - Meyraki Global In India
ABOUT LIDL ASIA
Outsole abrasion tester & Outsole flexing Head and Torso Simulator (HATS) – Head Integrating Sphere - Lighting Product
tester Phone sound quality
ABOUT LIDL ASIA
PRODUCT
Germany DEVELOPMENT
USA
France
LOGISTICS SOURCING
…
UK
Italy
Austria ARTWORK &
CSR
Poland PACKAGING
Hungary
OUR SUPPLIER NETWORK
MERCHANDISING
QUALITY ASSURANCE
PRODUCT DEVELOPMENT Ensure product safety, quality and functionality
Source, develop and design products MERCHANDISING Liaise with 3rd parties on testing methods and results
MERCHANDISING Responsible for product compliance with regulations
Perform market studies & benchmarks
Understand customers’ needs QUALITY PRODUCTION Liaise with Lidl’s internal lab to create test protocols and benchmarking
Coordinate theme planning & sales requirements
FREQUENCY
Oct Jan
Apr Jul Oct Jan Apr Jul Oct
Selection Selection Selection Selection Selection Selection Selection Selection Selection
Aug Sep Nov Dec Feb Mar May Jun Aug Sep Nov Dec Feb Mar May Jun Aug Sep
APR SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Apr Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION
JUL SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Jul Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION
OCT SEL
BRIEFINGS PRE- PRE-
Oct Selection PREP
OFFER PREPARATION
SELECTION
SELECTION
HALL
NEGO-
TIATION
PROD
PRODUCTION
JAN SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Jan Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION
Notes
1 project = 1 FOB date
Countries volumes
Engagements
OUR ONBOARDING PROCESS ORDER
6
If successful, order placement
on your first order
HOW TO BECOME A
LIDL SUPPLIER 5 BECOME A LISTED SUPPLIER
Registration in our supplier pool
4-8 WEEKS
TIME DEPENDS ON AVAILABILITY
PRODUCTION TEAM:
COMPLIANCE TEAM: SOCIAL AUDIT
2 TECHNICAL EVALUATION 3
Factory Compliance Evaluation (FCE) to make sure that all our
Factory Technical Evaluation (FTE)
compliance standards are understood
Understands how your factory works
WORK WITH
WORK WITHUSUS
PRODUCTION TEAM
OVERVIEW FACTORY TECHNICAL EVALUATION (FTE)
Visits your factory or appointed third party and performs an evaluation (1-2 full days)
This includes: machinery, set up, quality control and raw material management
It helps to ensure that all production steps and quality are fulfilled
in your factory
SOURCING TEAM Our target is NOT to outsource any production, if not necessary
FTE must be “passed” before placing an order
EVALUATION OF HIGH POTENTIAL FACTORIES FOR LIDL
The first department of Lidl Asia you will meet
Informs you about Lidl Asia and all necessary procedures
Discusses open questions with you
Visits your factory after a successful pre-evaluation QUESTIONS & ANSWERS
(factory profile / prices / quality requirements) Q. DO WE NEED TO HAVE THIS EVALUATION?
A. Yes!
Q. WHO WILL DO THIS EVALUATION ?
A. Lidl Asia or an appointed third party (free of charge).
QUESTIONS & ANSWERS Q. WHEN WILL THE AUDIT BE DONE ?
A. It depends on order potential/selection, organized by Lidl Asia.
Q. WHAT PREPARATION IS NEEDED BEFORE THE VISIT?
Q. HOW CAN I PREPARE MYSELF AND PRE-CHECK ?
A. None unless requested (e.g. sample preparation).
A. During the factory visit, Sourcing Team provides a checklist to help you prepare.
Q. HOW LONG DOES THE PRE-EVALUATION VISIT LAST IN THE FACTORY?
Q. WHAT HAPPENS IF WE FAIL ?
A. About 2-5 hours, depending on the factory size and topics.
A. We support you with the first audit. In case your factory fails, then you have
Q. CAN WE FAIL?
3 months to improve based on a CAP (Corrective Action Plan). We will then conduct a re-
A. Sourcing Team will support and inform you regarding potential concerns during the visit.
audit. No order will be placed without a “passed” FTE.
WORK WITH US
COMPLIANCE
Environmental certification Subcontractor: If a producer outsources its own production processes in whole
or in part to a company or person, then the concerned company or person is a
Amfori BEPI Level 1 or
Hardgoods subcontractor. A subcontractor will be treated like a T1 producer and must
ISO 14001
be approved and/or registered by LINT.
Textile manufacturers
STeP by OekoTex incl. DETOX to ZERO by OEKOTEX
with wet processes
QUESTIONS & ANSWERS
Amfori BEPI Lvl. 1 Q. WE DO NOT HAVE ANY OF THE ENVIRONMENYAL CERTIFICATION MENTIONED ABOVE.
or A: Please make sure you are certified/ assessed before 01 Jan 2023. Otherwise, you cannot
Higg Facility Environmental Module* receive order confirmation from LIDL
Textile manufacturers
or Q: HOW SHOULD WE START TO BE CERTIFIED?
without wet processes
ISO 14001 A: Please contact the preferred certifier, e.g. for BEPI certification, we suggest to contact
or Bureau Veritas (BV) QUESTIONS & ANSWERS
STeP by OekoTex Q: ANY COST FOR US ON ENVIRONMENTAL CERTIFICATION?
A: Yes. Please contact the service providers to confirm the cost depending on your type of
*Verified total score must be over 25% & Verified score in each individual operations and size.
TUV Rheinland All countries cynthia.cheng@tuv.com Cynthia Cheng +852 2192 1943 https://www.tuv.com/
ISO14001
SGS All countries nina-lj.Liu@sgs.com Ms Nina Liu +86 0755 25328888 Ext. 6643 https://www.sgsgroup.com.cn/
SGS All countries nina-lj.Liu@sgs.com Ms Nina Liu +86 0755 25328888 Ext. 6643 https://www.sgsgroup.com.cn/
Higg FEM
Intertek All countries shinning.li@intertek.com Shinning Li +86-755-2602 0869 https://www.intertek.com.cn/
Hohenstein All countries Y.woelki@hohenstein.de Yvonne Woelki +49 7143 271 116 https://www.hohenstein.com/en/
STeP
Testex All countries Coline.leung@testex.com Coline Leung +852 2368 1718 https://www.testex.com/en/
For information on other regions or 3rd party audit firms, please feel free to contact: certificatemanagement@lidl.com.hk
REQUEST FOR QUOTATION
All offers made by suppliers should be 100% accurate from product and
- Check if there is any patent infringement base on your factory experience (Low / Medium / High)
PRODUCT DETAILS
FOB Unit price
Packing method
Social Compliance status (indidate (per piece or Unit (PCS Product net weight Material (e.g. Product Feature / Assortment FOB port of Anti-Dumping Tax
Presentation Title Lidl ID Factory ID Factory name Project Nr. Theme Colors / Pantones Product photo Description + Product Specification Product size (cm) (e.g. 4C color box, MOQ HS code Duty (%) Certificate (if any) (e.g. FSC) Open to Sell in Europe (Yes / No)
BSCI yes/no and grade) per set?) in / SETS) (KG) plywood, PP, PET) breakdown (if any) Loading (%) if any
B/W sticker)
USD
1807 kichenware FeS_1807_02 Potter BSCI Yes 1807_0024 15.1 - Kitchen (Useful helper)
Food vacuum clips
Keep snack crisp and food fresh longer
100% air tight to keep food away from mildew
and germs
1.870 sets
(12 cm(S) x 6 + 25
cm (L) x 6 )
ca. 128g PP
Color box for 12
pcs set.
60 boxes in one
PDQ.
Yantian, China 100000 392410000 6.50% Yes
Quotation form +
Samples (if required)
A. ca. L22 x W16.6
Lunch to go assortment: x H8.9 cm
A. ca. 260g
A. Rectangular box with compartments B. ca. L18.5 x PP + Silicone seal
1807 kichenware FeS_1807_07 13554 LISI BSCI Yes 1807_0317 16.1 - Leisure (Picnic) 1.670 sets B. ca. 289g 4C Color Sleeve Ningbo, China 100000 392410000 6.50% LFGB, Leakage proof, dishwasher safe Yes
B. Square box with salad dresser box W18.5 x H11 cm ring
C. ca. 200g
C. Square sandwich box C. ca. L19 x W19 x
H8.4cm
COUNTRIES
SELECTION
THEMES & PRODUCTS OFFERS FINAL PRE- DELIVERIES
HALL PRODUCTION
BRIEFINGS PREPARATION NEGO PROD
GO or NO GO
Final volumes
• Develop our requested products (“repeater items” or new) • Finalize price negotiation • Attend project kick-off meeting
• Suggest your own new product proposals • Ensure production capacity • Arrange samples (cosmetic & testing or confirmations)
• Arrange samples and complete product information • Ensure Lidl requirements are met • Secure production schedule
• Develop samples and send quotes • Assure quality control during production
• Deliver goods on time
WORK WITH US
Suppliers must provide all required information to our “PP” Meetings will be conducted in your factory to allow mass production
3rd party partners for them to perform requested tests. to start. We will verify the entire production schedule to ensure
that the level of quality is understood, confirm production control points
Our QA team will support the factory at an early stage of and and anticipate potential issues.
throughout the projects.
TESTINGS
PRE-PRODUCTION / PP SAMPLE EUG Test (Compliance Testing File) at 0-10% or 500 Pcs – Full Lab Test
PRE-PRODUCTION Qualification Test
PRODUCTION
30% Stage selected test + Spot tests (anytime) - No Full Lab Test
1 2 3 4 5
COSMETIC SAMPLE CONFIRMATION SIGNED SAMPLE TO FACTORY PILOT RUN INSPECTIONS SHIPMENT RELEASE
colors and design approval by Lidl International will be used as a reference sample MASS PRODUCTION STARTS 30 % PSI at > 30% Stage – Lidl Asia
during mass production 100 % PSI at 100% Stage – Lidl Asia
+ Random inspections (anytime) + (DUPRO / PRE-FINAL)
WORK WITH US
1 2 3 4 5
CONFIRMATION SAMPLE CONFIRMATION SEALED PRE-PRODUCTION SAMPLE TO FACTORY TESTING - EUG INSPECTIONS SHIPMENT RELEASE
colors and design approval by Lidl International will be used as a reference sample 0-10% Stage: Documents check 30% PSI at > 30% Stage – Lidl Asia
during mass production and inspection + partial testing 100% PSI at 100% Stage – Lidl Asia or Inspection Center or 3rd Party (US)
+ Random inspections (DUPRO / PRE-FINAL)
WORK WITH US
All unethical behaviour, such as documentation falsification, or intentional misrepresentation, is considered a Critical Non-Compliance
(CNC), while bribery is Zero Tolerance under Lidl’s C&S Guideline
Lidl reserves the right to terminate a business relationship in the event of a failure to comply with Lidl’s C&S Guideline requirements
For overview about our Compliance and contact details, please visit : https://lidl.asia/compliance
Grievance Systems are essential to the identification and the mitigation of potential risk areas.
LIDL has recently rolled out a global and independent Grievance Management System allowing our supply chain partners to reach
out to LIDL directly and report their grievance
Lidl’s business partners will receive documents of the grievance system and will be requested to post in factory areas so that
employees can access to it
INNOVATION Collaborate with a retailer which launches hundreds of new items every year
Ladieswear Lingerie
– Ladies’ lingerie
Menswear Hosiery
Kidswear Shoes – Ladieswear
Sportswear
Home textiles – Infant apparel
– Children’s apparel
Since 2014 we have been awarded the title of Caring Company by The Hong Kong Council of Social
Service,
in recognition of our volunteer and charity contributions and care for our employees and the environment.
We are dedicated to improving ourselves in all areas of our business. From caring for our environment and
supporting our communities, to protecting the wellbeing of our employees and working to ensure our
products are safe and ethical, we are committed to doing the best we can, every time.
CARING FOR THE
ENVIRONMENT
WE ARE DRIVEN TO MAKE OUR
BUSINESS AS GREEN AS POSSIBLE.
LOOP – LOW-CARBON OFFICE
OPERATION PROGRAMME
We embrace opportunities to improve our operations to be more
sustainable and responsible wherever possible. Since 2014, our office in West Kowloon is LOOP certified as
part of the Low-Carbon Office Operation Programme to
reduce carbon emissions.
CONTACT POINTS
COMPLIANCE SOURCING
Email: rscm@lidl.com.hk HARDGOODS