DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT.

Running head: DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT
DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT
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DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT
Introduction
The essay aims to provide a clear analysis of three aspects of the transportation
management at PEPSI supply chain, namely incoterms selection consideration, the carrier
selection criteria as well as the carrier relationship management. The selected organisation for
this essay is the PEPSI co., which is a supply chain organisation that provides logistics
services to the companies. The incoterms selection consideration has been briefly detailed in
this report. The carrier selection criteria is briefly described for providing the brief idea about
the working of the business. A brief discussion of the carrier relationship management that
analyses the transportation goods as well as the needs of the company has been provided in
this report. Lastly, this report concludes with an appropriate conclusion for the report.
PepsiCo. Inc, is the American multinational snack, food as well as the beverage
corporation that is headquartered in the city of Harrison, New York in hamlet of the purchase.
The company has the major interests within the sector of manufacturing, distribution as well
as the marketing of the grain based foods as well as the snacks, several other products along
with the beverages. This company provides the consumers with variety of products that are
majorly popular among the common people. The Coca-Cola Company has been the most
primary competitor of the company for significant time within the beverage market. The
Coca-Cola Company has been considered as holding significant market value for nearly a
decade and it works in the similar market as the PepsiCo. Inc.
Incoterms selection consideration
Each firm wishes to create any efficient strategy for reducing the costs of the
transportation and gain effective distribution of the goods to the customers (Martinsen &
Huge-Brodin, 2014). These particular incoterms are selected for the Pepsico. Inc because it
would help in reducing the risks of the transportation significantly and the delivery of the

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DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT
manufactured products to the end customers could be ensured easily. PepsiCo is among the
largest bottle soft drink corporations in the world. The company hire skilled truck drivers for
the beverage delivery. The company utilises the sea cargo transportation method for
transporting the products to the international customers. Due to the physical features of the
water conferring various methods, the maritime transportation is considered as the most
efficient method of moving significantly large quantity of cargo over large distances for the
company. The incoterms that could be implemented in the organisation should ensure the
proper delivery of the goods, ensure minimal cost of the transportation and then ensure
accurate delivery irrespective of the geographic coverage. The list of the incoterms that could
be used by the PEPSI supply chain organisation is:
EXW: The Ex works has been considered as the international term that helps in the
describing when any seller makes any product available at any designated location as well as
the buyer of that product should cover the costs of the transportation. The Ex works is among
the 11 present incoterms, which is the set of the standardised international trade term that has
been published by the International Chamber of Commerce (Angeleanu, 2015). The pepsico
company could implement this methodology for the improvement of the trade of the
organisation. The incoterms are commonly described as the necessary collection of some pre-
defined protocols that have been comprehended across the whole world and it assists in
reduction of the major issues within communication that are faced by the international traders
on daily basis (Schliwa et al., 2015). The company could utilise the Ex Works for trading
where the sellers of products is solely responsible for the tasks of packaging after production
of the goods within the location of the manufacturing department. This task is solely carried
out within the respect of Free carrier Preparations in which any seller is primarily responsible
for clearance of all the goods from any associated customs of the target markets. The delivery
of the products is ensured in the target location after clearance from the customs in the

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DIPLOMA TRANSPORTATION AND DISTRIBUTION MANAGEMENT
connected cities (Owusu Kwateng, Manso & Osei-Mensah, 2014). Even though there are
several assets in this incoterms, some of the liability includes the prospects such as the
requirement of transportation of the goods after the loading of goods has been done along
with the unloading of the goods at the destination location (Nica, 2015).
Figure: EXW
Source: (Angeleanu, 2015)
FOB: The Free on Board is the terminology within the international commercial law
that helps in the specification of which point the respective obligations, risk as well as the
cost included within the provision of the goods shift from the seller to the buyer under the
incoterms standard that has been published by the International Chamber of Commerce
(Gammelgaard et al., 2015). The FOB incoterm could be properly utilised by the company
for transporting the products to the customers with the proper consideration of the obligations
and the rules of the countries. The FOB is solely utilised within the non-containerised sea
freight carrier or the waterway transport (Barreto, Amaral & Pereira, 2017). As the Pepsico
company mainly ships the product using flight cargo, this incoterm could be utilised.