Pepsi: Supply Chain Management

Topics: PepsiCo, Pepsi, Supply chain Pages: 17 (5018 words) Published: May 13, 2014

Table of Contents

Introduction
Supply Chain Management is the process of planning, implementing, and controlling the operations of supply chain with the purpose to satisfy customer requirements as efficiently as possible. 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. 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. Supply Chain management is also the combination of art and science of improving the way company finds the raw components it needs to make a product or service and deliver it to customers. 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. Moreover, this has been a prominent concern for both large and small companies as they strive for better quality and higher customer satisfaction. In a supply chain, a company links to its supplier upstream and to its distributors downstream in order to serve its customer. The goal of supply chain management is to provide maximum customer service at the lowest possible costs. Companies now are competing supply chain-to-supply chain rather than enterprise-to-enterprise requiring for more intimately connected relationships. Customer markets and supply chains are no longer limited by physical proximity, and businesses are sourcing from and managing a greater number of far-flung partners and channels. Success of a company now depends on effective global supply chain management, its ability to deliver the right product to the right market at the right time. The complexity involved in managing supply chains that span continents and dominate markets demands strategies and systems that are adaptable. 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. An example to illustrate this theory on the supply chain management is the PepsiCo, Inc.

Pepsi Co History
PepsiCo, a Fortune 500, American Multinational Corporation is under the food consumer product industry and is the world leader in convenient foods and beverages. The Pepsi brand and other Pepsi-Cola products account for nearly one-third of the total soft drink sales in the United States. In order for the company to make sure that their products reach the customers, the company needs a efficient supply chain solutions. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including the Gatorade in 2001.  PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. 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. The Frito-Lay brands are : Cheetos,Fritos,Go Snacks, James' Grandma's Cookies, Hamka's, Lay's, Miss Vickie's, Munchies, Sandora, Santitas, The Smith's Snackfood Company, Sun Chips, Kurkure, Tostitos and some of the Quaker Oats brands include Aunt Jemima, Capone Crunch, Chewy Granola bars, Coqueiro, Crisp'ums, Cruesli,...
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