pepsico supply chain analysis

By standardizing and optimizing its server environment, PepsiCo International is better flex to meet its changing business needs and in turn provide better service to customers anywhere in the world. Students looking for free, top-notch essay and term paper samples on various topics.

The Pepsi brand and other Pepsi-Cola products accounted for nearly one-third of the total soft drink sales in the United States.

The seven year deal involved the overhaul of current IT solutions with PepsiCo and focused on updating server environments as well as ensuring a new infrastructure which benefitted operations and increased overall cost-saving. The Frito-Lay brands are : Cheetos,Fritos,Go Snacks, James Grandmas Cookies, Hamkas, Lays, Miss Vickies, Munchies, Sandora, Santitas, The Smiths Snackfood Company, Sun Chips, Kurkure, Tostitos and some of the Quaker Oats brands include Aunt Jemima, Capone Crunch, Chewy Granola bars, Coqueiro, Crispums, Cruesli, FrescAvena, King Vitaman, Life, Oatso Simple, Quake, Quisp, Rice-A-Roni, and Spudz PepsiCos Mission. Creates mutually beneficial relationships that expand PepsiCos sphere of activity. There are three major problem areas related to the current practices in Tropicana. Likewise, it was able to reduce the number of drive styles from several hundred to 14.

This reduced downtime and inventory costs. They do this through sales growth, cost controls and wise investment of resources. In order to ensure that PepsiCos concentrates reaches bottlers as needed during the production had to reach them JIT, they partnered with 3PL provider Penske Logistics to manage its transportation. From there, theyare, rinsed, dried and sent to a filling machine (filler speeds at the plant vary based on bottle size, ranging from 350 to 1,000 bottles per minute). A series of predefined, extensible events and exceptions support each workflow and a visual studio allows workflows and events to be extended, configured, and customized to meet specific enterprise requirements.

They even got the shipping and freight costs included in the purchase price, which led to the increase in the price of the commodity. This solution incorporates pre-built workflows that integrate data across order management, warehouse management, logistics, and inventory applications for the flow of both domestic and international goods. The sourcing or purchasing managers strived towards reducing companys spending overall. Retrieved from https://studymoose.com/pepsico-supply-chain-management-essay. aich yajaira mba Penskes with use of i2 transportation could track performance at every stage in the process which increased flexibility and provided greater control over the transportation operation.

It enables better understanding of orders, inventory, and logistics data. PepsiCo Indias project with the Punjab Agro Industries Corporation and Punjab Agriculture University remains one of the most ambitious contracts farming projects in the country. During her time, healthier snacks have been marketed and the company is striving for a net-zero impact on the environment.

Get your custom essay on, Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". PepsiCo and its bottlers have established a purchasing cooperative to gain purchasing power in buying raw materials.

Tropicana used i2 Supply Chain Strategist to execute hundreds of scenarios and sensitivities, producing data that provided insights into areas where the company could rationalize system capacity at manufacturing facilities and increase efficiencies within existing distribution and logistics systems.

Difficulties without Just-in-Time. It is designed to enable an organization to utilize and manage an entire transportation network, as well as reduce cost while improving transport performance. With this centralization, allows negotiation in a large scale to secure the best rates and services.

One was to achieve an on-time delivery rate at 99.1% and another was to reduce transportation costs.It empowered with optimized processes and technology that enable the team to perform at the highest possible level. The option to move from calendar-based to event-driven planning and re-planning. Big, muscular brands, and then Add to Home Screen. This increase in visibility made it easier to keep track of shipments, revise routes and schedules to accommodate unforeseen changes and implement alternative plans to counter delays. This manager consolidated suppliers offering products or materials at the lowest per unit costs through buying in volume.

By Penskes putting a solution in place to track andmeasure every shipment, Pepsi has been able to provide an on-time delivery performance of well over 99 percent. Improvement with using Just-In-Time (JIT), When it comes to delivering high cost and perishable products to manufacturing sites, just-in-time (JIT) remains one of the most cost-effective supply chain solutions. Supplier Base: Frito-Lays supplier network for potato chip production has fewer than 100 individual suppliers. I2 transportation is designed to employ sophisticated optimization and data techniques to define and evaluate alternative transportation strategies. The companys ability to target local demand patterns with effective promotion and delivery systems results in continuously optimizing profit margins and reducing inventory and unneeded costs. These benefits have ultimately enhanced productivity by 8 percent and reduced the overtime required to fill orders. In particular, HP introduced a number of new solutions which helped to encourage stronger customer relationship management and supply chain management. Tracks the logistical movement of products throughout the supply chain, from acquiring the raw materials to final delivery, by utilizing its 848 tractors, 2,251 trailers, and a fleet of thousands of local computer-equipped delivery trucks.

In order for the company to make sure that their products reach the customers, the company needs a efficient supply chain solutions. Furthermore, Pepsis orders are received electronically and optimized to ensure lowest transportation cost. Thus the major sustainable advantages that give PepsiCo a competitive edge as they operate in the global marketplace: 1. Juices arrive already palletized and pre-packaged in paperboard containers and plastic and glass bottles. Pack safety for the consumer This may require the design of contracts or cost sharing agreements with the customers. It enhances customer satisfaction in terms of availability of options, assurance ofquality, prompt delivery times, and value of money. pepsico marr

They focus on being the most reliable, quality-driven suppliers who provide services through the retail channel by means of collecting as much information along the way and utilizing it to address their weaknesses and capitalize on their strengths. Improved customer, supplier, and partner communications. Tropicana, a unit of PepsiCo, implemented i2 Supply Chain Strategist to model manufacturing logistics operations to include co-packer operations. Juices arrive already palletized and variously pre-packaged, and are unloaded according to demand, and moved into the ASRS area. i2 Supply Chain Visibility delivers a robust technology that is scalable and extensible, and that operates smoothly in a distributed computing environment. The last stop involved is the 400,000 stores across the nation that carries Frito-Lays snack food products.

This remote support service provides the plant with 24/7 access to Rockwell Automation technical specialists. Give us your email address and well send this sample there. PepsiCos operations started in India started in the region of Punjab in collaboration with state government. When an operation of the company was not just-in-time based, the demand or production planner strived to optimize production-oriented goals and objectives such as equipment utilization, labour efficiency, throughput and uptime. Pepsi bottling system is more fragmented than Coca-Colas. a bottle of Pepsi will consider product quality, price and availability of the product. Horticulture produce in India is largely marketed through traditional channels. I2 Transportation, I2 Transportation is a part of end to end solution for planning, execution, and management of the entire transportation cycle. The retailers benefit from in time delivery and less stock out cost. Thats when it decided to turn to Rockwell Automation for help. Combining marketing strategies with inventory levels and other factors. 1. GS 1 standards (bar codes) 1. Thus, Pepsi focuses its competitive strategy as to producing sufficient variety, reasonable prices, and the availability of the product. Globalization and outsourcing have added to the complexity, resulting in more diversified supply chains. Managing Supply Chain for Global Competitiveness takes a strategic look at all of the core functions of global supply chain management which includes product design, planning and forecasting, sourcing, outsourcing, manufacturing, logistics, distribution, and fulfilment.

Despite only delivering potato and corn chips, relies on its ability to add unparalleled value in its distribution channel. The solutioncan also incorporate packaged business process packs for replenishment, fulfilment, and manufacturing, and these packages can be configured to meet customer-specific requirements.

Configurable event detection mechanism and customizable event management workflows, Event chaining such as linking of related events, audit trails, context-based problem prioritization and extensive notification options including e-mail, e-mail digest, pagers, and cell phones, Calendars, internationalization (i18n), and multi-time zone support enabled Integration to underlying applications for intelligent resolution and to prevent event recurrence, Root-cause, event trend, and performance analysis capabilities event library with over 100+ out-of-box events supported, Fast, web-based supplier enablement and transaction support, Benefits E-solution by Hewlett Packard (HP). Real-time decision support Dont know where to start? PepsiCo owns some of the worlds most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lays, Doritos, Tropicana, Gatorade, and Quaker. To help the company better utilize its internal resources and reduce costly troubleshooting delays, the Rockwell Automation Services Agreement included TechConnect Support. Demand-side events might include customer orders that are greater than forecasts or changes to orders that have already been placed.

The companys inventory of sensors swelled over the years to include more than 120 different varieties. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. Type your requirements and Ill connect you to With annual sales of nearly $11 billion, the companys fastest growing segment is non-carbonated beverages, including the number one brand of bottled water in the U.S., Aquafina, as well as Tropicana juice drinks and Lipton Ice Tea.

The company never ships partially filled trains from Florida. Other brands include Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light, Caffeine-Free Diet Pepsi, Caffeine-Free Pepsi Light, Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi Twist and Pepsi ONE,7 Up ,Aquafina (Flavour Splash, Alive, and Twist/Burst),Propel Fitness Water, SoBe, Quaker Milk Chillers. Today, beverage distribution and bottling is undertaken primarily by associated companies such as The Pepsi Bottling Group and Pepsi Americas. The Jersey City DC receives five Tropicana Unit trains from the production facility in Florida weekly. The model involved over 30 manufacturing and distribution facilities and the seasonal demand of over 20 product types. Penske also provides warehouse management for two Pepsi distribution centers in North America. This is the so-called supplier-retailer coordination problem.

Each train has approximately 45 refrigerated cars.

At the moment, Tropicana manages the inventory orders for about 10% 20% of the retailers.

Commitment to purchase from a supplier base representative of our employees, consumers, retail customers and communities. Two types of unloading procedures are currently in practice: cross-docking and warehousing. Jersey City houses a unit load capacity Automated Storage and Retrieval System (ASRS) that is fully integrated into an Automated Warehouse System (AWS). Pepsi-Cola Saved $44 million by switching from corrugated to reusable plastic shipping containers for one litre and 20-ounce bottles, conserving 196million pounds of corrugated material. This is subject to random variation and hence uncertainties of demand on the warehouse. It is a cross functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end consumer.

The plant uses a variety of sensors to monitor bottles as they travel through the sequence of steps and to manage the flow to the individual stations. PepsiCo set two objectives for transportation management. PepsiCos overall mission is to increase the value of shareholders investment.

pepsi Cross docking normally is used for customers receiving a single product types or transfers to a smaller distribution center in Whitestone, NY. The number of supply chain partners, as well as the amount of geographic dispersion, has increased dramatically as a result.

To streamline its operation, Rockwell Automation recommended that Pepsi standardize its entire sensors inventory on Allen-Bradley products. Value Chain Transformation Customer Supply Chain Chain Transformation Customer Supply Chain Value Chain Transformation Customer Supply Chain logistics management; Mapping the Value Chain - Value Chain Part of value chain analysis Overview of the value chain Identify constraints or blockages in chain Understand role of poor or, HONEY VALUE CHAIN ASSESSMENT REPORT FINAL LEBANON INDUSTRY pdf.usaid.gov/pdf_docs/ VALUE CHAIN ASSESSMENT REPORT FINAL LEBANON INDUSTRY VALUE CHAIN HONEY VALUE CHAIN ASSESSMENT, FUTURE VALUE CHAIN - GS1 Ireland .FUTURE VALUE CHAIN BuilDing stRAtEgiEs PepsiCo, Inc. Jean-Michel.

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Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

Each train usually contains 8 to 10 railcars that can accommodate cross-dock delivery. Key supply chain cost optimizer through an Integrated supply chain approach, Drive standards pallets/trucks It seeks to enhance competitive performance by closely integrating the internal functions within a company and effectively linking them with external operations of suppliers and channel members.

Inbound and outbound tracking of order, inventory, and logistics flows, Domestic and international flows that track multi-leg and multi-modal shipments Visibility into exceptions and events across orders, inventory, and shipments, Role-based views for buyers, suppliers, analysts, and 3PL vendors, High degree of permissibility and privacy controls, Track-and-trace inventory across multiple locations

Implementation. A typical marketing chain for horticultural produce consists of several players as shown in Figure. Exception-based management

Developing partnerships with minority-owned and women-owned suppliers helps us build the world-class supplier base we need. Of the four principal Distribution Centres (DC) in the U.S. the Jersey City, N.J. DC is responsible for the supply of Tropicana juices in all states in the Northeast U.S., and all Canadian provinces. Menlo was able to reduce the carrier base by 50% and negotiate nation-wide discounts with other carriers. PepsiCo is a SIC 2080 (beverage) company. A customer while purchasing Its brands appeal to an extraordinarily diverse array of customers and they are sold by an equally diverse group of retailers. Optimal load configuration ensures maximization of each truckload (2003). Studymoose.com uses cookies.

PepsiCo signed a deal with Hewlett Packard in 2006 to help improve its supply chain management and increase overall efficiency. Currently there are five trains of juices scheduled to arrive weekly from Florida. In JIT process, on time delivery is an absolute necessity. Just-in-Time (JIT) is a philosophy that defines the manner in which a manufacturing system should be managed. i2 transportation platform was enhanced with the addition of interface between the two companies.

With Companies have access to global visibility into all of their critical supply chain activities and partnerships. By continuing you agree to our cookie policy, Dont waste Your Time Searching For a Sample, Supply Chain Management in Seven-Eleven Convenience Store Chain, Toyota's management: changed its strategy toward supply chain management, Supply Chain Management - new management philosophy, Drivers of Sustainable Supply Chain Management, A Case Study of Amazon on Its Supply Chain Management. Rhizman is absolutely amazing at what he does . In 2000, Penske converted Pepsis transportation management technology from propriety software to i2 transportation optimization solution. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Commercial Security offerings Empowers its regional managers with access to vast amounts of information on their databases that can be used to effectively guide them in their distribution decisions. Limitations of Pepsi Supply Chain over Coke. It allows organizations to respond more quickly and effectively to a wide range of unplanned and potentially disruptive supply and demand events.

This process is called CRP or continuous replenishment program. While PepsiCo has been pursuing international beverage acquisitions, those investments will take time to produce significant operating income. In a supply chain, a company links to its supplier upstream and to its distributors downstream in order to serve its customer. Production at the plant begins as empty bottles are unloaded from trucks via conveyor and transported to a depalletizer. PepsiCo has duplicate distribution systems for its beverages. The center handles chilled premium orange juices, and blended juices from concentrate as well as shelf stable juice products from either Florida or local co-packers.

The local distributor, McNaughton-McKay Electric Company (Mc&Mc), helped design a migration plan to help ease the cost of this inventory conversion.

Frito-Lay is the snack food division of PepsiCo and the largest supplier of potato and corn chips in the world, currently holding 40% of the market share globally, and selling its products in 120 countries.

Next it needed to figure out what products were actually needed and which ones could be eliminated. It is noteworthy to mention that steps like these that insure a stable supply of raw material are important to a company who purchases 2.3 billion pounds of potatoes and 775 million pounds of corn annually. It is also designed to provide comprehensive data management, analytics, and reporting of key transportation cost and service trade-offs.

Solution End-to-end supply chain visibility and event management tools, Customer-specific solutions for replenishment, fulfillment, and manufacturing, The ability to forecast and respond to supply/demand events.

Well occasionally send you promo and account related email. In order to achieve this, the company has learned how to masterfully create, innovate and manage all aspects of its supply chainusing high-tech IT systems that allow it greater control over its production processes and distribution network. Frito-Lay traditionally relied upon its in-house fleet of trucks to transport products from its plants to its 1,900 warehouses or 200 distribution centers.

Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Strategy Used: PepsiCo also has formed partnerships with several brands it does not own, in order to distribute these or market them with its own brands. A similar problem was developing with its drives inventory, which had grown to over 50 different part numbers. The Jersey City Distribution Center (DC) of Tropicana is responsible for the supply of Tropicana juices in all states in the Northeast U.S., and all Canadian provinces. Frito-Lay then offered these farmers long-term contracts, which made it easier for the farmers to get financing and for Frito-Lay to achieve more efficient, profitable economies of scale in other areas of the value chain. i2 Supply Chain Visibility also enables companies to close the loop between traditional planning and execution processes. Pallet pooling services.

FUTURE VALUE CHAIN - Capgemini ?

A carefully designed coordinated system will benefit each and every player in the supply chain network. You can get a custom paper by one of our expert writers. Online supply chain visibility across the chain 3.

The Tropicana customer service department administers the ordering of those individual customers. A carefully designed and sophisticated coordination of ordering policies will reduce the chances for these problems and result in savings. Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. PepsiCo has also recently acquired a 50% stake in U.S.-based Sabra Dipping Company. Companies now are competing supply chain-to-supply chain rather than enterprise-to-enterprise requiring for more intimately connected relationships. In a consolidated system negotiations involve fewer players and therefore take less time to gain agreement, which may be why the Pepsi system has lagged in system efficiency efforts.

Advanced technology is deployed to select the lowest cost carrier, find the best routes and consolidate shipments. An example to illustrate this theory on the supply chainmanagement is the PepsiCo, Inc. PepsiCo, a Fortune 500, American Multinational Corporation is under the food consumer product industry and is the world leader in convenient foods and beverages. This helped Pepsi minimize risk and reducing long term costs. In its business, diversity and inclusion provide a competitive advantage that drives business results.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. To simplify its drives inventory and upgrade its technology at the same time, Pepsi converted all of its drives to the Allen-Bradley PowerFlex family of AC drives.

Leveraging Rockwell Automation Services & Support has proved to be a smart decision for Pepsi Bottling Group. This focus on healthier foods and lifestyles is part of Nooyis Performance with Purpose philosophy. I highly recommend him if you need an assignment done . It is able to correctly assess demands across all of its products due to the availability of point-of-sale data and an impeccable IT system, giving planners the ability to discern consumer trends and appropriately prepare production plans.

Although all the drives employed at the plant were Allen-Bradley brand, many were older models representing a multitude of drive families.

1. In 2007, Nooyi spent $1.3 billion on healthier-alternative brands like Naked Juice, a California maker of soy drinks and organic juice.

The improved inventory and parts management capabilities helped reduce downtime and inventory costs, andstandardizing on Allen-Bradley products eased training requirements and minimized the technology learning curve. To make this possible, Pepsi partners with Penske that has provide them with i2 transportation optimization solutions which has satisfies their consumer with the on-time delivery and with the benefit to the company for it has also reduce transportation cost.

On the other hand, logistics became increasingly difficult and distances grew longer, and thus, Frito-Lay learned to exploit the benefits of truck carrier services, employing Menlo Logistics to handle route planning. In addition, operating costs were on the rise due to the excess spares inventory. 5. The wide variety of sensors made it progressively more complex and time-consuming to replace a faulty device. To help facilitate problem resolution, Rockwell Automation technical specialists can also perform remote system diagnostics through an Allen-Bradley modem installed at the Pepsi facility. 3.

It understands the needs of our consumers and customers, Uses diversity in our supplier base and in everything we do. From the supply chain perspective, this is mutually beneficial for both the customers and the warehouse.

PepsiCo had also opted for BT as its network provider to ensure the e-solution is fully implemented. The logistics/transportation manager was tacked with getting raw materials in and the finished goods out of the production process and seek to optimize the transportation and distributing network.

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pepsico supply chain analysis

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