pepsico supply chain analysis

Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. To make this possible, Pepsi partners with Penske that has provide them with i2 transportation optimization solutions which has satisfies their consumer with the on-time delivery and with the benefit to the company for it has also reduce transportation cost. It is also designed to provide comprehensive data management, analytics, and reporting of key transportation cost and service trade-offs. The companys ability to target local demand patterns with effective promotion and delivery systems results in continuously optimizing profit margins and reducing inventory and unneeded costs. An example to illustrate this theory on the supply chainmanagement is the PepsiCo, Inc. PepsiCo, a Fortune 500, American Multinational Corporation is under the food consumer product industry and is the world leader in convenient foods and beverages.

The companys inventory of sensors swelled over the years to include more than 120 different varieties. The supply chain management solution reduced costs as well as enhanced current service provision online and via its communications networking system. 2. These benefits have ultimately enhanced productivity by 8 percent and reduced the overtime required to fill orders. It allows organizations to respond more quickly and effectively to a wide range of unplanned and potentially disruptive supply and demand events. The agreement allows Pepsi to reduce its upfront expenses, have immediate access to spares, reduce carrying costs, and update its control technology cost-effectively. Improvement with using Just-In-Time (JIT), When it comes to delivering high cost and perishable products to manufacturing sites, just-in-time (JIT) remains one of the most cost-effective supply chain solutions. Horticulture produce in India is largely marketed through traditional channels. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. To ensure that their order-to-delivery performance is not impacted, companies need to have greater coordination and visibility into the material flow across the supply chain. Pepsis transportation is consolidated to a central location to reduce costs. 2. Type your requirements and Ill connect you to Success of a company now depends on effective global supply chain management, its ability to deliver the right product to the right market at the right time. This is subject to random variation and hence uncertainties of demand on the warehouse. Rhizman is absolutely amazing at what he does . Globalization and outsourcing have added to the complexity, resulting in more diversified supply chains. Exception-based management In its business, diversity and inclusion provide a competitive advantage that drives business results. Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. The option to move from calendar-based to event-driven planning and re-planning. It is able to correctly assess demands across all of its products due to the availability of point-of-sale data and an impeccable IT system, giving planners the ability to discern consumer trends and appropriately prepare production plans. The last stop involved is the 400,000 stores across the nation that carries Frito-Lays snack food products. 2. Leveraging Rockwell Automation Services & Support has proved to be a smart decision for Pepsi Bottling Group. This helped Pepsi minimize risk and reducing long term costs. Today, beverage distribution and bottling is undertaken primarily by associated companies such as The Pepsi Bottling Group and Pepsi Americas. One approach would be to create an incentive for the customers to entrust their ordering function to Tropicana. Supply-related events can include production bottlenecks, fulfillment delays such as port strikes and customs delays, and supplier shortages. With this centralization, allows negotiation in a large scale to secure the best rates and services. Tropicana used i2 Supply Chain Strategist to execute hundreds of scenarios and sensitivities, producing data that provided insights into areas where the company could rationalize system capacity at manufacturing facilities and increase efficiencies within existing distribution and logistics systems. It helps build community infrastructure by providing employment, training, role models, buying from other minority and women-owned business and supporting community organizations. A customer while purchasing ?Clay Broussard, PepsiCo, Inc. Jean-Michel Bru, Carrefour Duco Buijze, Lekkerland Joe Burton, Mars Petcare Us Brett Campbell, Graysonline Jeff Chahley, Understandingthe pharmaceutical value chain - IFPMA .Understandingthe pharmaceutical value chain, JetFighter: An Experiential Value Chain Exercise An Experiential Value Chain Exercise 1 JetFighter: An Experiential Value Chain Exercise Abstract Value chain analysis is widely taught. This process is called CRP or continuous replenishment program. E-solution by Hewlett Packard (HP). 1. This focus on healthier foods and lifestyles is part of Nooyis Performance with Purpose philosophy. The Jersey City distribution center sometimes builds up inventory of certain classes of juices that are close to their expiration date, and the company has to get rid of them either at a very low price with sales promotion or donate them to charity. However, as the company expanded, operations managers realized that it was not economical to produce every product at every plant, and thus began specializing at particular locations. With annual sales of nearly $11 billion, the companys fastest growing segment is non-carbonated beverages, including the number one brand of bottled water in the U.S., Aquafina, as well as Tropicana juice drinks and Lipton Ice Tea. Frito-Lay traditionally relied upon its in-house fleet of trucks to transport products from its plants to its 1,900 warehouses or 200 distribution centers. The Jersey City Distribution Center (DC) of Tropicana is responsible for the supply of Tropicana juices in all states in the Northeast U.S., and all Canadian provinces. The Frito-Lay brands are : Cheetos,Fritos,Go Snacks, James Grandmas Cookies, Hamkas, Lays, Miss Vickies, Munchies, Sandora, Santitas, The Smiths Snackfood Company, Sun Chips, Kurkure, Tostitos and some of the Quaker Oats brands include Aunt Jemima, Capone Crunch, Chewy Granola bars, Coqueiro, Crispums, Cruesli, FrescAvena, King Vitaman, Life, Oatso Simple, Quake, Quisp, Rice-A-Roni, and Spudz PepsiCos Mission. Creates mutually beneficial relationships that expand PepsiCos sphere of activity. Each train has approximately 45 refrigerated cars. Cross docking normally is used for customers receiving a single product types or transfers to a smaller distribution center in Whitestone, NY. In addition, the plant was able to reduce the number of sensors it uses from 180 to 46, a decrease of 66 percent. Tropicana, a unit of PepsiCo, implemented i2 Supply Chain Strategist to model manufacturing logistics operations to include co-packer operations. Its customers know that when they do business with Frito-Lays, they arent simply buying a product to shelve in their stores, but incorporating an advanced information system with hopes of increasing sales and profits.

They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity.

aims logistics msu You can get a custom paper by one of our expert writers. Students looking for free, top-notch essay and term paper samples on various topics. pepsico thain FUTURE VALUE CHAIN - Capgemini ? PDF file value chain, in both directions.13 Value chain analysis separates the activities in the value chain, making it possible to identify areas where value. Each pallet is wrapped for distribution and moved to the warehouse for shipping.

Supply Chain management is also the combination of art and science of improving the way company finds the raw components it needs to make a product or service and deliver it to customers. Solution Optimizing these goals often leads to run large batch sizes that are dependent on the availability of raw materials. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including the Gatorade in 2001. They even got the shipping and freight costs included in the purchase price, which led to the increase in the price of the commodity.

Other brands include Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi, Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi Twist and Pepsi ONE,7 Up ,Aquafina (Flavour Splash, Alive, and Twist/Burst),Propel Fitness Water, SoBe, Quaker Milk Chillers. It seeks to enhance competitive performance by closely integrating the internal functions within a company and effectively linking them with external operations of suppliers and channel members. PepsiCo had also opted for BT as its network provider to ensure the e-solution is fully implemented. Thus, Pepsi focuses its competitive strategy as to producing sufficient variety, reasonable prices, and the availability of the product. Individual stores contribute the other 80% 90% of the orders, which are not under Tropicanas control. A typical marketing chain for horticultural produce consists of several players as shown in Figure. Difficulties without Just-in-Time. pepsico

This may require the design of contracts or cost sharing agreements with the customers. Penske also provides warehouse management for two Pepsi distribution centers in North America. In order to achieve this, the company has learned how to masterfully create, innovate and manage all aspects of its supply chainusing high-tech IT systems that allow it greater control over its production processes and distribution network. 2. To install StudyMoose App tap I2 transportation is designed to employ sophisticated optimization and data techniques to define and evaluate alternative transportation strategies. Foreseeing an inventory buildup problem, the company can use marketing (and mainly pricing) as a tool to either increase demand (when certain items build up) or reduce demand (when insufficient inventory is available). Retrieved from https://studymoose.com/pepsico-supply-chain-management-essay. Premium orange juice from Florida represents approximately 65% of the shipments, and has an approximate shelf life of 65 days. This is the so-called supplier-retailer coordination problem. PepsiCo signed a deal with Hewlett Packard in 2006 to help improve its supply chain management and increase overall efficiency. Pepsi-Cola Saved $44 million by switching from corrugated to reusable plastic shipping containers for one litre and 20-ounce bottles, conserving 196million pounds of corrugated material. 1. A carefully designed coordinated system will benefit each and every player in the supply chain network. It enhances customer satisfaction in terms of availability of options, assurance ofquality, prompt delivery times, and value of money. PepsiCo also has formed partnerships with several brands it does not own, in order to distribute these or market them with its own brands. Companies now are competing supply chain-to-supply chain rather than enterprise-to-enterprise requiring for more intimately connected relationships. It understands the needs of our consumers and customers, Uses diversity in our supplier base and in everything we do. Its brands appeal to an extraordinarily diverse array of customers and they are sold by an equally diverse group of retailers. I2 Supply Chain Visibility is designed to manage these events, assess their impact, and orchestrate a rapid and practical resolution while providing a unified view of the supply chain. pepsi The sourcing or purchasing managers strived towards reducing companys spending overall. Penskes with use of i2 transportation could track performance at every stage in the process which increased flexibility and provided greater control over the transportation operation. On the other hand, logistics became increasingly difficult and distances grew longer, and thus, Frito-Lay learned to exploit the benefits of truck carrier services, employing Menlo Logistics to handle route planning. The plant uses a variety of sensors to monitor bottles as they travel through the sequence of steps and to manage the flow to the individual stations. They focus on being the most reliable, quality-driven suppliers who provide services through the retail channel by means of collecting as much information along the way and utilizing it to address their weaknesses and capitalize on their strengths. Line sensors match the speed of the conveyor. Don't use plagiarized sources. The company tries to captivate its customers by developing extensive databases that record who their customers are and exactly what they want. Improved customer, supplier, and partner communications. Value Chain Transformation Customer Supply Chain Chain Transformation Customer Supply Chain Value Chain Transformation Customer Supply Chain logistics management; Mapping the Value Chain - Value Chain Part of value chain analysis Overview of the value chain Identify constraints or blockages in chain Understand role of poor or, HONEY VALUE CHAIN ASSESSMENT REPORT FINAL LEBANON INDUSTRY pdf.usaid.gov/pdf_docs/ VALUE CHAIN ASSESSMENT REPORT FINAL LEBANON INDUSTRY VALUE CHAIN HONEY VALUE CHAIN ASSESSMENT, FUTURE VALUE CHAIN - GS1 Ireland .FUTURE VALUE CHAIN BuilDing stRAtEgiEs PepsiCo, Inc. Jean-Michel. 4. When an operation of the company was not just-in-time based, the demand or production planner strived to optimize production-oriented goals and objectives such as equipment utilization, labour efficiency, throughput and uptime. With the application of new technology that provides greater supply chain visibility, better organized data, and access to higher level of real time or near real time information, even the best team can improve their performance. Retailers are also provided with Frito-Lays Profit-Vision Program, which allows retailers to analyze their sales and compare it to national performance statistics. The solutioncan also incorporate packaged business process packs for replenishment, fulfilment, and manufacturing, and these packages can be configured to meet customer-specific requirements. Well occasionally send you promo and account related email. Two types of unloading procedures are currently in practice: cross-docking and warehousing.

Currently there are five trains of juices scheduled to arrive weekly from Florida. This increase in visibility made it easier to keep track of shipments, revise routes and schedules to accommodate unforeseen changes and implement alternative plans to counter delays.

With the agreement, Pepsi pays a fixed monthly cost for their spare parts, which are owned and managed by Rockwell Automation but stocked on-site. In JIT process, on time delivery is an absolute necessity. Demand-side events might include customer orders that are greater than forecasts or changes to orders that have already been placed. Marketing strategies such as sales incentives can influence demand. I2 Transportation, I2 Transportation is a part of end to end solution for planning, execution, and management of the entire transportation cycle. Optimal load configuration ensures maximization of each truckload (2003). Managing Supply Chain for Global Competitiveness takes a strategic look at all of the core functions of global supply chain management which includes product design, planning and forecasting, sourcing, outsourcing, manufacturing, logistics, distribution, and fulfilment. i2 Supply Chain Visibility also enables companies to close the loop between traditional planning and execution processes. Frito-Lay then offered these farmers long-term contracts, which made it easier for the farmers to get financing and for Frito-Lay to achieve more efficient, profitable economies of scale in other areas of the value chain. They do this through sales growth, cost controls and wise investment of resources. In 2000, Penske converted Pepsis transportation management technology from propriety software to i2 transportation optimization solution. But lowest cost could only be attained if the purchasing team negotiates a delivered cost package deal with the supplier and the supplier is responsible of the reliability and performance of the carriers or transporters. PepsiCo consolidation puts pressure on the independent system bottlers to more readily consider agreements for warehouse distribution. Coca-Cola has for the most part maintained distribution of its entire beverage line-up through its bottlers. Counterfeit & pilferage Supplier Base: Frito-Lays supplier network for potato chip production has fewer than 100 individual suppliers. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. Although all the drives employed at the plant were Allen-Bradley brand, many were older models representing a multitude of drive families. i2 transportation platform was enhanced with the addition of interface between the two companies. Pepsi bottling system is more fragmented than Coca-Colas. This optimizes the equipment and labour utilization but the production planners and managers had not been looking at the expense of the bigger picture. In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice, a California maker of soy drinks and organic juice. Key supply chain cost optimizer through an Integrated supply chain approach, Drive standards pallets/trucks Supply Chain Management is the process of planning, implementing, and controlling the operations of supply chain with the purpose to satisfy customer requirements as efficiently as possible. The logistics/transportation manager was tacked with getting raw materials in and the finished goods out of the production process and seek to optimize the transportation and distributing network. From the supply chain perspective, this is mutually beneficial for both the customers and the warehouse. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Strategy Used: Give us your email address and well send this sample there. Pack safety for the consumer PepsiCos operations started in India started in the region of Punjab in collaboration with state government. PepsiCos overall mission is to increase the value of shareholders investment. A more strategic approach to maintenance was necessary, as even the smallest of delays could cost the plant thousands of dollars in lost production and overtime.

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pepsico supply chain analysis