PEM'16 BATCH SECTION 2 ELECTIVE GROUP - 6 PEM'16 BATCH SECTION 2 ELECTIVE GROUP - 6 PEPEPSICO

NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT
AND RESEARCH, PUNE
SUBJECT: -
SUPPLY CHAIN MANAGEMENT
ASSIGNMENT: - 01
SCM OF PEPSICO
SUBMITTED TO: -
Dr. SUDHIR AMBEKAR
SUBMITTED BY: GROUP 2
PP20127 KEVIN PUNNEN
PP20128 MILIND JAGTAP
PP20130 SWAROOP SHELKE
PP20134 JAYKUMAR PATEL
PP20146 NAMIT JAIN
PEM’16 BATCH
SECTION 2
ELECTIVE GROUP - 6

9
Logistics & Supply Chain Management Assignment 01
About the company:
PepsiCo, Inc. (often referred to as the Pepsi Company) is an American multinational food,
snack, and beverage conglomerate headquartered in Purchase, New York. PepsiCo's operations
represent the entire food and beverage industry. It is in charge of product manufacture,
distribution, and marketing. In 1965, the Pepsi-Cola Company and Frito-Lay, Inc. merged to
establish PepsiCo. PepsiCo has subsequently grown from its namesake beverage, Pepsi Cola,
to a vast array of food and beverage businesses. Pioneer Foods was purchased for $1.7 billion
in 2020, followed by the Quaker Oats Company in 2001, which added the Gatorade brand to
the Pepsi portfolio, and Tropicana Products in 1998.
The company has 23 brands with sales of over $1 billion as of January 2021. PepsiCo has
businesses all over the world and sells its goods in over 200 countries, generating annual net
revenues of more than $70 billion. PepsiCo is the world's second-largest food and Beverage
Company, behind Nestlé, in terms of net revenue, profit, and market capitalization. PepsiCo's
flagship product, Pepsi Cola, has been at odds with Coca-Cola for generations, a rivalry known
as the Soda Wars. Despite the fact that Coca-Cola outsells Pepsi Cola in the United States,
PepsiCo is the largest food and beverage company in North America by net revenue. PepsiCo's
CEO, Ramon Laguarta, has been in charge since 2018.
2 | P a g e
NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH, PUNE

9
Logistics & Supply Chain Management Assignment 01
PepsiCo Products:
PepsiCo's product mix (based on worldwide net revenue) in 2015 consisted of 53% foods and
47% beverages. The company's current product lines span the globe and include several hundred
brands that collectively produced over $108 billion in yearly retail sales in 2009.
Annual sales of over $1 billion are the primary marker of a food and beverage sector main brand.
Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Brisk, Quaker
Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel, Sobe, H2oh, Sabra,
Starbucks (ready to Drink Beverages), Pepsi Max, Tostitos, Sierra Mist and Fritos.
3 | P a g e
NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH, PUNE

9
Logistics & Supply Chain Management Assignment 01
PepsiCo Supply Chain Strategies
Various supply chain strategies followed by PepsiCo are as follows:
1. Coordinated Forecasting.
PepsiCo’s supply chain management system begins with coordinated forecasting.
PepsiCo uses market intelligence to forecast the total amount of product needed in all
channels and markets where it is sold. The forecasts are done monthly and consider the
current inventory levels, current demand, and expected changes in each channel.
2. Coordinated Distribution.
After forecasting is completed, PepsiCo begins the distribution phase of the supply chain
management process. In this stage, products are delivered from 20 distribution centres to
retailers and wholesalers worldwide. Each distribution centre is responsible for a specific
zone within North America or a specific zone within Europe, depending on which
location they service. PepsiCo works with retail customers to develop joint distribution
programs that coordinate the delivery of products from different third-party suppliers at
specific times of the day to meet customer needs.
3. Information Transparency.
PepsiCo’s supply chain management system uses a centralized information technology
platform called Enterprise Information Portfolio that provides real-time access to relevant
data. The supply chain incorporates electronic data interchange (EDI), point of sale
(POS) systems, and automated clearing house (ACH) technologies to communicate with
each other. Based on the forecasting process, Pepsi-Cola knows what products will be in
demand in each region. It can then send that information via EDI to retail customers to
set price and product advertising strategies on a regional basis.
4. Supply Chain Visibility.
Once products arrive at stores and customers begin buying them, PepsiCo’s supply chain
management system maintains visibility into the location and condition of those items at
all times. This is done through point-of-sale technologies that tell vendors which products
were sold and how quickly they moved off the shelves. When a store sells a product, it
uses a POS system to send the information electronically to PepsiCo. The data tells
Pepsi-Cola how much of each item was sold, where that item is located within the store,
4 | P a g e
NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH, PUNE