Supply Chain Management

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PEPSICO

Of

Presented By : Ghanshyam Gupta ghanshyamgupta7@gmail 4/2/12 .com

PEPSI CORPORATION

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About PepsiCo

PepsiCo is a world leader in convenience foods and beverages. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered India in 1989 and has grown to become the countrys largest selling food and beverage companies. PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country in 1989.

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PepsiCos Profile

PepsiCo India plans to further invest US$220 million in 2009.although it had an investment of $700 million upto 2007. 37 bottling plants in India, of which 16 are company owned and 21 are franchisee owned. PepsiCos Frito Lay snack division has 3 state of the art plants. It has more than 185,000 employees across the world. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. CEO : INDRA NOOYI.

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Products

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Indian Soft Drink Market

15%
Carbonated Non Carbonated

85%

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DEFINITIONS:A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products and the distribution of these finished products to customers. Supply chains exists in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm Mohanty and Deshmukh. Click to editStock & Lambert, Supply chain integrates According to Master subtitle style the key business processes of an organization from end user through original suppliers that provides products, services and informations that added value for customers and other stakeholders

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How the supply chain works?

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Understand the Markets Your Company Serves

The quantity of the product needed in each lot The response time that customers are willing to tolerate The variety of products needed The price of the product The desired rate of innovation in the product

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SUPPLY CHAIN DESIGN

In order to ensure a good supply chain: Plans two years in advance. Several contracts with manufacturers & receives raw material on convenient basis. Production plants to be placed. Transportation Production planning.

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SUPPLY CHAIN PLANING

Starts with forecast of coming year of demand. Carries out sales forecasting for local demand as well as for exports. Annual sales target is conveyed to supply chain department. Planning is done on monthly, weekly and daily basis.

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SUPPLY CHAIN OPERATIONS

Firm allocate inventory or production to individual orders, set a date that an order is to be filled, generate pick lists at a warehouse, set delivery and so on. There is less uncertainty about demand. The production, sales and supply chain departments get together to decide the inventory usually on a weekly basis.

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DISTRIBUTION CHANNEL
American Marketing Association defines a market channel as the structure of itra company organization units and extra company agents and dealers, wholesale and retail, through which a commodity, product or service is marketed. Click to edit Master subtitle style Distribution channel are sets or interdependent organizations involved in the process of making a product or service available for use or consumption.

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DISTRIBUTION CHANNEL OF PEPSI

Direct distribution:
Delivery of post mix cylinders & handling of key accounts: The key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro which serve as a place for key sale. These are known as national key accounts and are very important in terms of competition. Export Parties

Indirect distribution

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CRITERIAS FOR DISTRIBUTOR

Applicant must have 20 to 25 vehicles (depending on the area). Applicant must have 20,000 cases of empty bottles. Applicant must deposit Rs.1, 000,000 as a security.

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FACTORS INFLUNCING DISTRIBUTION CHANNEL

Response Time Product Variety Customers Desire Availability Customer Experience

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SWOT ANALYSIS OF PEPSI (Strengths)

Brand Strength. Effective Stride in New Market. Results of Operations. Strong Existing Distribution Channels.

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SWOT ANALYSIS OF PEPSI (Weaknesses)

Reliant upon Line Extensions. Reliant upon Particular carbonated Drinks. Brand Dilution entrance into difficult non core Categories. Saturation of carbonated soft drink.

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SWOT ANALYSIS OF PEPSI (Opportunities)

New Product Introductions. Brand is attractive to Global Partners.

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SWOT ANALYSIS OF PEPSI (Threats)

Strong Competition. Potential health issues free trade.

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Proposed Ideas From the Group

Minimize the Communication gap in Distribution Channel. Avoid making False Commitment. Regular training to the Distributor. Outsourcing of the Transportation during peak seasons say (Diwali). Extra Focus on Monopoly Outlets.

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Cont.

Capture the untapped market (Rural Market). Give reminder to the retailer. Production should be up to the mark. Vehicles should be maintained regularly.

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For more than 40 years, G&J Pepsi-Cola Bottlers (G&J Pepsi) has been a leading bottler and distributor of Pepsi and other beverages throughout Kentucky and Ohio. Consolidating data was a problem we were always two days behind, says Chris Witzgall, vice president of IT at G&J Pepsi. Anytime we drilled into detailed information on products, customers, or vending locations, we had data performance issues. 4/2/12

Some Case Studies of Pepsico Effective Supply Chain

G&J Pepsi adopted a Microsoft Business Intelligence (BI) solution based on Microsoft SQL Server 2005, Microsoft Office SharePoint Server 2007, and Microsoft Performance Point Server 2007 (now part of Office SharePoint Server 2007). Because the company had previously standardized on Microsoft for its back-office applications and already used SharePoint to enable collaboration, choosing Microsoft was a natural decision.

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A Case of e-solution

Food and drinks company PepsiCo has agreed a new deal to help improve its supply chain management and increase overall efficiency.

The new seven year deal with Hewlett Packard will involve the overhaul of current IT solutions with PepsiCo and focus on updating server environments as well as ensuring a new infrastructure to help benefit operations and increase overall cost-saving. 4/2/12

A Case of i2 supply chain solution

PepsiCo Identifies Annual Savings Through the Use of i2 Supply Chain Solution; i2 Supply Chain Strategist used to identify Manufacturing and Logistics Synergies i2 Supply Chain Strategist Solution was a key contributor in the development of strategic plans that will help Tropicana achieve the synergies and savings of our merger with Quaker Oats," said Rick Dobry, Sr. Vice President Operations, Tropicana. "We used this i2 tool 4/2/12

Critical Assessment On Supply Chain of PEPSICO

Flexible model Aggressiveness Loyal distribution network Lack of audits at various outlets

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Success Mantra of pepsico

Click to edit Master subtitle style Producing in sufficient variety,

reasonable prices, and the availability of the product.

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Thank You
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