Supply Chain & Efficiency
PepsiCo is one of the biggest Beverage and Snack Companies in the world. Due to that, many factors have to come into consideration in the production planning, distribution planning and execution process. Raw materials that are used in manufacturing it’s beverage and food products are; apple, corn, rice potatoes, oranges, oats, vegetable and other oils, wheat, fruit juice concentrates, aspartame, corn sweeteners, flour, sucralose, etc. All these materials come with packaging materials; plastic resin for plastic beverage bottles, film packaging for snack foods, aluminum for cans and natural gas. After manufacturing the products are then delivered in bulk. To manage that, PepsiCo’s supply chain management and product flow has three main components; direct to store delivery model, and the idea of collaboration and integration
Disregarding the direct to store delivery model, taking initiative to have a more collaborated and integrated supply chain becomes a source of competitive advantage. PepsiCo employed many technologies. Distribution strategies are used to bring products to the market depending on the product characteristic, local trade practices and customers’ needs. Fragile and perishable products are delivered from its manufacturing plant and warehouses to customer warehouses and retail stores. Third parties and food services and vending distributors are used to distribute its snacks, foods, and beverage to restaurants, schools, stadiums, businesses and other locations. All of these technologies are controlled by integrated systems that keep all information such as; delivery dates, products types and product amounts. Taking initiative to have a collaborated supply chain, PepsiCo establish a relationship with their retailers and customers by proposing them better product lines.
Products of Pepsico are dependable on raw agricultural materials to meet our demands and consumers' expectations in which they are inexpensive and premium quality. With new opportunities always rising, the company has to stay on top of greenhouse gas management and worldwide food supplies. These include an international supply chain which includes independent farmers, intermediaries and also farms which are company owned.
The company has their own code of conduct for suppliers called The Pepsico Global Procurement Supplier Social Capability Management Program. It is to make sure all their suppliers understand and abide by the terms of the conduct.
There are four dimensions Pepsico has for supplier standards:
1. Accountability for Supplier Code of Conduct (SCoC)
2. Engaging through code training
3. Reviewing of CSR risks
4. Improvement through third party audit/corrective management
To meet the code of conducts, all suppliers are given the Supplier Code of Conduct (SCoC) in the initial contracts to guarantee accountability. The company also engages each supplier in proper training so there is no confusion with the SCoC and suppliers manage to do business properly. This is done through meetings face-to-face, videos or online. Assessment is also done to make sure suppliers and their sites need more training. The goal of the company is to keep the Pepsico brand safe and highly reputable. Pepsico has translated the SCoC into more than 25 languages to make it globally accessible for all suppliers.
Disregarding the direct to store delivery model, taking initiative to have a more collaborated and integrated supply chain becomes a source of competitive advantage. PepsiCo employed many technologies. Distribution strategies are used to bring products to the market depending on the product characteristic, local trade practices and customers’ needs. Fragile and perishable products are delivered from its manufacturing plant and warehouses to customer warehouses and retail stores. Third parties and food services and vending distributors are used to distribute its snacks, foods, and beverage to restaurants, schools, stadiums, businesses and other locations. All of these technologies are controlled by integrated systems that keep all information such as; delivery dates, products types and product amounts. Taking initiative to have a collaborated supply chain, PepsiCo establish a relationship with their retailers and customers by proposing them better product lines.
Products of Pepsico are dependable on raw agricultural materials to meet our demands and consumers' expectations in which they are inexpensive and premium quality. With new opportunities always rising, the company has to stay on top of greenhouse gas management and worldwide food supplies. These include an international supply chain which includes independent farmers, intermediaries and also farms which are company owned.
The company has their own code of conduct for suppliers called The Pepsico Global Procurement Supplier Social Capability Management Program. It is to make sure all their suppliers understand and abide by the terms of the conduct.
There are four dimensions Pepsico has for supplier standards:
1. Accountability for Supplier Code of Conduct (SCoC)
2. Engaging through code training
3. Reviewing of CSR risks
4. Improvement through third party audit/corrective management
To meet the code of conducts, all suppliers are given the Supplier Code of Conduct (SCoC) in the initial contracts to guarantee accountability. The company also engages each supplier in proper training so there is no confusion with the SCoC and suppliers manage to do business properly. This is done through meetings face-to-face, videos or online. Assessment is also done to make sure suppliers and their sites need more training. The goal of the company is to keep the Pepsico brand safe and highly reputable. Pepsico has translated the SCoC into more than 25 languages to make it globally accessible for all suppliers.