Supply Chain Management (SCM): How It Works and Why

RUNNING HEAD: SUPPLY CHAIN 0
VALUE CHAIN MANAGEMENT

SUPPLY CHAIN 1
Executive Summary
The aim of the report is to understand the stages performed by PepsiCo and the performance of
the supply chain in the company. The report will also provide information about the competitors,
partners and partners of PepsiCo. The information is received through value chain analysis and
by focusing on the profitability of the company. From the analysis, it is revealed that the
company adopts the stage of performing primary and secondary activities through using other
different activities. There are various competitors of the company such as “Coca-Cola”, “Red
Bull” etc and it target youngsters and various other customers. However still issue arises due to
more competition and different consumers, therefore, to overcome these issues it can adopt
EZOffice Inventory software and can use sale promotion marketing strategy.

SUPPLY CHAIN 2
Table of Contents
Introduction......................................................................................................................................3
Stages in value chain.......................................................................................................................3
Primary Activities............................................................................................................................3
Inbound logistics..........................................................................................................................3
Operations....................................................................................................................................4
Outbound logistics.......................................................................................................................4
Marketing and sales.....................................................................................................................4
Services........................................................................................................................................4
Secondary Activities........................................................................................................................4
Firm Infrastructure.......................................................................................................................5
Human Resource management....................................................................................................5
Technology development.............................................................................................................5
Procurement.................................................................................................................................5
Target customers and Key Suppliers...............................................................................................5
Partners and competitors..................................................................................................................6
Performance of Supply Chain..........................................................................................................6
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
References........................................................................................................................................8
Appendices......................................................................................................................................8

SUPPLY CHAIN 3
Introduction
Value chain management (VCM) is the integration of all resources starting with the
vendor's vendor. It integrates information, materials, labor, facilities, logistics, etc. into a time-
responsive, capacity-managed solution that maximizes financial resources and minimizes waste
(D'heur, 2015). It leads in providing various benefits to the company which includes it support
the organization to gain success in the long run. Further, it also provides other advantages to the
organizations that is it leads in effective flow of goods and services to the target customers
(Christopher, 2016).
The estimation describes that cost of the organizations reduces because of decreasing the
inventory level because of receiving the product from the manufacture at lower cost; it also leads
in reducing wastage of the organization. In this report, PepsiCo Company in United States of
America is selected; further the discussion is made on describing the stages of value chain, target
customers, suppliers and competitors. The report will also provide recommendations to the
company to overcome the challenges and issues in supply chain.
Stages in value chain
PepsiCo is an American multinational food, beverages as well as snacks, it is the well
known company which increases the revenue of the organization that is in the year 2018 it was
$64.44 billion. The company adopts various stages of value chain which includes:-
Primary Activities
The primary activities and approaches of PepsiCo involve in performing all the activities
which focuses on manufacturing the product by selling and offering it to the target customers. It
is estimated that company adopt various strategies to work in efficient manner.