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Pepsi

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Supply Chain of Pepsi co. 1.1 Understanding Supply Chain of Pepsi co. 1.2 Supply Chain Strategy or Design In order to ensure a good supply chain strategy, Pepsi co. plans two years in advance. It has several contracts with manufacturers, and receives raw material on a convenient basis. The company also decides where production plants are to be placed. The production process is 65% automated. The company has to provide and manage transport for the delivery of products as well as the arrangement of third party services for the procurement of products. The shipping department handles orders and the transport department decides the vehicles for safe delivery. Material planning and sourcing is carried out as well. Sources of supply of raw material both local and foreign are identified and terms and conditions are negotiated. Capacity planning is also done at this stage. Sales forecasting and production planning depends upon the capacity of the organization with respect to: 1. Production 2. Storage: Raw and packing 3. Storage: Finished goods The supplier is audited by the most cost efficient quality control department. Distributors are also decided by the company, keeping in mind past performances. 1.3 Supply Chain Planning The goal of planning is to maximize the supply chain surplus. Planning establishes parameters within which a supply chain will function over a
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period of time. Companies start the planning phase with a forecast for the coming year of demand. Pepsi carries out sales forecasting for local demand. The annual sales target is conveyed to the supply chain department, planning is carried out on a monthly, weekly and daily basis.

1.4 Supply Chain Operation Company makes decision regarding individual customer orders. The goal of supply chain operations is to handle incoming customer orders in the best possible manner. During this phase, firms

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