Logistics and Supply Chain Management at PepsiCo

RUNNING HEAD: Logistics and Supply chain management 0
Pepsi
Logistics and Supply chain management

Logistics and Supply chain management 1
Contents
Introduction...........................................................................................................................................2
PepsiCo.................................................................................................................................................2
Analysis of the relationship between supply chain management and logistics management.............2
Significance of effective logistics management function in achieving customer satisfaction............3
ERP.......................................................................................................................................................4
Suggest and analyse different best practices..........................................................................................5
Conclusion.............................................................................................................................................7
References.............................................................................................................................................9

Logistics and Supply chain management 2
Introduction
PepsiCo was established in 1965 with the merger of Pepsi-Cola and Frito-Lay. It is an
international food and beverage company. The products of the PepsiCo are available in more
than 200 countries. The company’s headquarter is in New York. The company believes in
strong corporate governance for financial reliability, investor confidence and greater
performance. The company is driven by food and beverage portfolio and includes brands like
Frito-Lay, Tropicana, Gatorade, Quaker and Pepsi-Cola. PepsiCo received the supply chain
innovation award for it’s innovative distribution strategy. In this report, the relationship
between supply chain management and logistics management of Pepsi has been described. As
an entrepreneur, the significance of effective logistics management function is analysed in
achieving customer satisfaction. ERP is used to improve customer satisfaction and keep focus
on e-commerce. The different best practices have been suggested to Pepsi to achieve
objective of cost reduction.
PepsiCo
Analysis of the relationship between supply chain management and logistics
management
The supply chain management is the process of scheduling, execution and controlling
operations of supply chain to please requirement of customers. The logistics management is a
part of supply chain management and these activities occur within the boundary of company.
The supply chain management thinks outside the business (Stadtler, 2015). The relationship
between SCM and logistics can be defined by analysing activities covered by each concept.
The logistics is responsible for the activities of SCM. The SCM encompasses more process
and functions than the logistics management. SCM defines supply chain structure which
creates framework and in turn creates the inside framework in which all logistic operations
take place. The logistics includes the traditional concepts such as locating, supply,
preservation and portfolio management. The SCM includes old-style logistics and comprises
more activities like marketing, product development, finance and customer service.
The suppliers are linked to upstream and distributors are linked downstream to serve it’s
customers. The supply chain management of PepsiCo aims to provide maximum customer
service at lowest cost possible. It is cross functional tactic to accomplish movement of raw