SUPPLY CHAIN MANAGEMENT

Name: Vraj Patel

B.Tech Mechanical
Seat No: BTM849
About Pepsi
PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500,
American multinational corporation

Headquartered in Purchase, NY with interests in

manufacturing and marketing a wide variety of carbonated
and non-carbonated beverages, as well as salty, sweet
and grain-based snacks, and other foods.

PepsiCo founded in 1965 through the merger of Pepsi-

Cola and Frito- Lay.

Revenue: USD 43.25 Billion.

More than 1,85,000 employees.

About Pepsi-India

It entered India in 1989

Owns 43 bottling plants in India, 17 are company owned

and 26 are franchisee owned.

Generates direct employment for more than 4000 people

in India and indirect employment for 60,000 people

Set up 8 Greenfield sites in backward regions of different

states. PepsiCo intends to expand its operations and is
planning an investment of approximately USD 150 million
in the next two- three years.

Annual exports from India are worth over USD 60 million

A Supply Chain Flow
Supply Chain Strategy

The Customer and Supply Chain Uncertainty

Understanding the Supply Chain Capabilities

Achieving the Strategic Fit

Forecasting Methods
1. Time-Series Method
Historical demand data can be effectively used to forecast future
demand.

2. Qualitative Method
Using historical data and market intelligence as a guide, PepsiCo
management practices their own judgment to determine the demand
forecast.. A yearly demand plan is forecasted in this way which is then
further divided into monthly, weekly and daily plans accordingly. 14 | P
age

3. Causal Method
Causal forecasting assumes that the demand forecast is highly
correlated with certain factors in the environment such as the state of
the economy, interest rates, and product pricing that can cause a
change in the demand.
Dynamics of Material Flow

Supplier Plant CnF/ Logistics Retailer

Distributor
 Information Flow Money Flow

Supplier Plant CnF/ Logistics Retailer

Distributor
Modes Of Transportation

Land
Truck offers advantage of door to door shipment, a
shorter delivery time and no transfer between pick up
and delivery.
Water
This mode forms only a very small part of the total
transport network. It is used for shipping of empty cans.
Air
It is again a very small part of the entire transport
network.
Networks Of SCM

Shipping via Central DC

Direct Shipping with Milk-Runs

Direct Shipping
Other Activities In Relation With Supply
Chain

Raw material Procurement

Main suppliers are near the plant to reduce transport cost

Selection Criteria of Distributors

Distributors should be efficient and well placed to increase availability
and reach of the product

Revenue Management
During demand the cost of the product is high
THANK YOU