PEPSICO Supply chain

PEPSICO Supply chain

1. Name Mohsin Raza Roll No 26-FMS/MSCM/S17

2. Its an American multinational food & beverage headquarter in Purchase, NY, USA. It was formed in 1965with merger of Pepsi Cola & Frito lay Inc. • Acquired Tropicana in 1998 & Quaker oats in 2001. It has mainly 22 product lines generating $1 billion revenue each year. In 2012 it has annual net revenue of $ 43.3 billion.

3. Seasonality subject to seasonal variations. • Beverage sales are higher during the warmer months and certain food sales are higher in the cooler months • Weekly beverage and snack sales are generally highest in the third quarter due to seasonal and holiday-related patterns, and generally lowest in the first quarter • However, taken as a whole, seasonality does not have a material impact on our business

4. Raw Materials Raw material for Beverages: • For drink: Water, sugar, color, caffeine • For packaging: Tin, aluminum, PET plastic Sources: • More than 30% raw material of PET bottle comes from organic waste • 10% of packaging is done through recycled products

5. Raw material for chips and juices : • Potatoes, oats, apples and milk Sources : • European organic farms • Pepsi looks after the requirements of farmers and also trains them to get desired size, color etc.

6. Inventory Management Inventories are valued at the lower of cost or market. Cost is determined using the average; first-in, first-out (FIFO) or last-in, first-out (LIFO) methods The Pepsi Bottling Group’s Detroit plant reduced its number of sensors from 180 to 46 • A decrease of 66 percent, by standardizing it sensors • Reduced downtime and inventory costs.

7. Transportation and Logistics PepsiCo manages 3 million Logistics • Private fleets, dedicated carriage, direct store delivery, refrigerated trucks and straight truck load shipments • Uses various logistic techniques Direct Store Delivery Broker Warehouse Distribution Vending & Food Service System