Supply Chain Management of PepsiCo

Added on - 21 Apr 2020

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RUNNING HEAD: Supply Chain ManagementSupply Chain Management
Supply Chain Management1ContentsIntroduction......................................................................................................................................2Analysis of the Key Flows in the Supply Chain of Pepsi................................................................2Product Flow................................................................................................................................2Cash Flow....................................................................................................................................4Information Flow.........................................................................................................................4Return Flow..................................................................................................................................4Recommendations........................................................................................................................4The Make Process of Pepsi..............................................................................................................5Long term capacity planning........................................................................................................5Medium term Aggregate Planning...............................................................................................5Short Term Planning (MPS & MRP)...........................................................................................5Very Short Term Plans.................................................................................................................6The Supply Chain Forecasting.........................................................................................................6Conclusion.......................................................................................................................................7References........................................................................................................................................9
Supply Chain Management2IntroductionSupply Chain Management can be defined as the proper organization of the entire system ofinterrelated businesses which are engaged in the movement of products and services from thepoint where they are originated to the point where they are consumed (Cetinkaya, et. al., 2011).This assignment will discuss about PepsiCo, Inc. as the international corporation having itsheadquarters situated in Purchase, New York. PepsiCo also produces a variety of snacks andfood items like Lay’s, Cheetos, Fritos Corn chips and many more but its top selling product isPepsi.The recipe for the soft drink Pepsi was developed for the first time in the 1880s and then wasgiven the name “Pepsi-Cola” in the year 1898 (PepsiCo, 2017).Slowly and gradually, its productlines expanded with the introduction of Diet Pepsi and acquisition of Mountain Dew. Later on,the Pepsi-Cola Company decided to merge with Frito Lay, Inc. and resulted in PepsiCo, Inc. inthe year 1965.As a supply chain manager of PepsiCo, Inc., the deep analysis provides an overview of thevarious processes followed within the supply chain of the organization. The main product of theorganization is Pepsi and therefore its productivity, quality and efficiency of the operations areanalyzed in the following report (Zucchi, 2015). Moreover, some recommendations have beenmade for making some alterations in the processes which are currently followed for the purposeof betterment.Analysis of the Key Flows in the Supply Chain of PepsiThe supply chain management is concerned with the management of all the flows that areessential for the movement of goods from the manufacturer to the ultimate consumer. There arefour important flows in the supply chain of Pepsi - product flow, cash flow, information flow andreturn flow (Coyle,et.al., 2012).Product FlowThe product flow of Pepsi consists of a supplier, manufacturer, distributer, wholesaler, retailerand the consumer (Schutt, 2004).
Supply Chain Management3Supplier- The raw materials used in the production of Pepsi includes carbonated water, sugar,citric acid, flavorings, additives, emulsions, etc. These are supplied to PepsiCo by 1sttier (thirdparty suppliers) and 2ndtier suppliers accordingly. Some ingredients are also arranged by thecompany from the other companies or nearest locations in order to reduce the costs.Manufacturer- The next step is concerned with the delivering of the ingredients to themanufacturer and the starting of the manufacturing process. Some bottling plants are owned byPepsiCo themselves while some are provided authority by PepsiCo for the manufacturing offinished beverages. The raw materials such as glass, silica and aluminum are utilized for thepurpose of manufacturing of bottles in which the drinks are bottled after production. They arethen directed towards the warehouse so that the further dissemination of the bottles can beinitiated.Warehouse and Distribution- The drinks are then delivered to the warehouses. For the purpose ofdistribution of its products in the market, PepsiCo follows a three channel process- direct storedelivery, third party distributer networks and customer warehouse (Bailey, 2014).Wholesalers and Retailers- The distributers further distribute the stock available with them to thewholesalers and suppliers operating in different regions of the country.Customer- The drinks then reaches the consumers residing in the different parts of the countrythrough the supply from these wholesalers and retailers.
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