Logistics and Supply Chain of PepsiCo

Running Head: PEPSI CO. 0
Supply Chain

PEPSI CO. 1
Contents
Introduction............................................................................................................... 3
Logistics interfaces with production................................................................................. 3
Length of production runs.......................................................................................... 3
Pepsi seasonal demand.............................................................................................. 3
Product life cycle........................................................................................................ 4
Logistics interface with marketing...................................................................................4
Marketing mix of Pepsi................................................................................................. 4
Product................................................................................................................. 4
Price..................................................................................................................... 4
Place.................................................................................................................... 5
Promotions............................................................................................................. 5
Logistics interfaces with finance and Accounting.................................................................5
Order processing system of Pepsi Co................................................................................ 5
Recommendations....................................................................................................... 6
Inventory management of PepsiCo................................................................................... 7
Recommendations for improvement in inventory management................................................7
Conclusion................................................................................................................ 8
References................................................................................................................ 9

PEPSI CO. 2
Introduction
PepsiCo is the leading company that has various brands under it. It is an American
beverage company that has headquarter in New York. From the report, it is found that in the
January 2012, the retail sales of PepsiCo was $1Billion. In several countries, it is the largest
beverage company in various parts of the world. Pepsi is targeting the beverage and food
market that caters to the needs of the people. It has also entered in the various new markets.
Due to its huge customer base, it has become the leading player in the market. An American
food and Beverage company serves in around 200 countries. Pepsi Co. has its headquarter in
New York. Caleb D. Bradham in New Bern first founded it. In 2013, it has adopted the vision
of being the global leader in the convenient beverages and food by serving with purpose.
Logistics interfaces with production
Length of production runs
The length of productions runs in PepsiCo done from Monday to Friday with the
occasional Saturday. It guaranteed the one day off. However, Pepsi runs 7 days a week. The
workers in Warehouse also work 27 days with no days off. However, in the wintertime, its
production goes slow so workers work few hours in a week. Pepsi does not have any union
and discourage the person for joining one who asks for effective and better work hours. In
this way, it tends to ensure the production process without hampering its market (Estes,
2018). It is true that if product will stop for even one day, it tends to hamper the productivity
of the organisation.
Pepsi seasonal demand
It is true that Pepsi demand is increasing to a greater phase in every country. Besides
this, it has opened the big concentrate plant in Singapore. It is the first giant plant of
Singapore. It will also produce the hundreds of beverages under this plant. The new facility
that it has opened in Singapore has taken the 18 months that proved to be boon for its
logistics efficiency and cost savings. It is also found that PepsiCo will have the possibility of
higher production cost due to the new plant (Kit, 2017).