PepsiCo: Supply Chain Management PepsiCo is an American multinational corporation headquartered at New York. Even though the company is a world’s leading distributor in snacks, foods and beverages, it mainly focuses on the manufacture and distribution of a wide range of carbonated and non-carbonated beverages…
d). Pepsi, the drinkable liquid is generally contained in a bottle and it has only two components. The main ingredients of Pepsi are carbonated water, sugar, emulsions, citric acid, additives, and flavourings; and glass, silica, and aluminium are the major raw materials used for bottles (Bhagat et al, n.d.). In the supply chain of Pepsi, the product passes through five different phases before reaching it in the hands of ultimate consumers. Firstly, the required raw materials are collected from the supplier and it is transferred to the plant. In the plant, the processing of raw materials takes place and the finished products are sent to wholesale distributors’ warehouses. The wholesaler distributes Pepsi to retailers on order placements; distribution vehicles play an important role in this phase. Ultimately, the product reaches the hands of original consumers and the whole process is regarded as the supply chain operations. Since this product largely employs water resources for the production, it adversely affects the environment. This negative feature in turn notably impinges on Pepsi’s supply chain management as it is a major societal issue. Similarly, large number of links in supply chain makes the product expensive to customers. ...
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Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
Now the business firms are not competing individually in the markets rather they are the part and parcel of different supply chain links. The only way in order to succeed in the market is that the business managers must have the ability to link different business networks or supply chain links in an effective and efficient way.
Organizations have come up with various innovative methods in all these process, which not only provide good SCM but also add value to their businesses as well as the environment including their suppliers, society as well as economy. Supply chain strategy is critical to its sustainability.
By 1990s, it became one of the most well-liked management term (Hugos, 2006). A supply chain can be seen as the alignment of three or more firms that are directly linked by the downstream as well as upstream flows of goods, services, information and finances from a particular source to the customers.
A good supply chain allows the organization to reduce the cost for its products without compromising on the quality and the relationship they maintain with their suppliers. To overcome this challenge, organizations have moved on to outsource their suppliers to developing countries just as China, Brazil, and Poland etc.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
To bring the main actors in the market together, for example, suppliers, manufactures, and stores are put together to simplify the production of commodities being produced, and then circulated at the right time. The captions are going to capture the
It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless
The micro-economic approach in regard to market logistics and strategic plans of an organization is extensively discussed. The effective warehouse management and transport arrangements are basic market logistic constituents (Jespersen & Skjøtt-Larsen, 2005). It is
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