UNIVERSITY OF LAHORE FINAL PROJECT Supply Chain Management

Submitted To: Sir Sarmad Irfan Submitted By:

Muhammad Yasir BBA02103150

Pepsi Cola Company Pakistan Introduction.

Pepsi cola started in the January 1898,from a small drug store in the city of north Carolina. The owner of the drug store was Mr. Caleb Bradham prepaid a drink, which the customer called the Bred Drink. Bred register this drink with the name of Pepsi cola in 1903.Then he started his own macro level production and establish his own company. In 1909 this company reached to 24 states of America with more than 250 dealers. Pepsi is a world renowned brand .It is a very well organized multinational company, which operated almost all over the world. They produce ,one of the best carbonated drinks in the world .Pepsi is a symbols of hygiene ,quality and servcies,all over the world .Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time. Now Pepsi Co is a world leader in convenient snacks, foods and beverages with revenues of more than $39 billion and over 185000 employees. The company consists of PepsiCo Americas Foods (PAF),PepsiCo America Beverages (PAB) and PepsiCo International. Its head office is in New York.

Introduction of the Project.

This project study is conducted to examine the supply chain and procurement of PepsiCo Pakistan. Company provides the products on the time by effective supply chain. Company understands customers needs and uncertainty thats supply chain faces in satisfying these needs. Company make sure of the availability of product by decreasing the lead time. This study provides the brief over view of all the organizational ways, strategies, planning, distribution, logistics, suppliers,

manufacturing, policies of PepsiCo Pakistan .

Mission Statement of PepsiCo.

our mission is to be the worlds premier consumer products company focused on convenient foods and beverages. we seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision Statement of PepsiCo.

To be the worlds best beverage company .PepsiCos responsibility is to continually improves all aspects of the world in which we operate-environment,social,economis-creating a better tomorrow than to day.

Distributor of PepsiCo in Lahore Pakistan .

Riaz bottlers (pvt) limited (RBL) incorporated in Pakistan as a private limited company in 1976.RBL is the franchise holder of PepsiCo international with seven brands like PEPSI,PEPSI MAX,7UP,MARINDA ,MOUNTAIN DEW.

Findings Policies and organization of the SC system. Q1. Sc policies and planes , various time frames and applicability of the SC strategies of the
organization under the research.?

A. PepsiCo is using

both Effective or responsive policy because company is focusing on cost as

well as focusing on time to deliver the order at time. There is so many competitors of PepsiCo in the market like. Coca Cola company, Amrat Cola Company, Gourmet Bakers thats why company try to reduce the cost of the product and reduce lead time to get more profit and to be leaders of the market.

Q2.SOPs of chosen company.

A. Standerd operations procedures of supply chian of Pepsi Co are given below: First in First Out (FIFO). Physical inspection of vehicles. Insuring quantity received as per document. Insuring dispatch of vehicle at time. Insuring storage within limits. Insuring physical stock as per documents. Insuring cleaningness of warehouse. Supply chain main stock of warehouse. Minimum or maximum capacity of vehicle. Permanent lock for vehicles while distributing. Use of fog lifters for loading or unloading of stock from vehicles.

 Time saving. Reduce labor effort.

Q3. Operations of teams responsible in technical, administrative and financial decisions in

procurement of your chosen organization. A. Technical, administrative, financial and procurement department are interlink each other in purchasing of goods in the company. Technical department checks the quality and technology of goods, administrative department make need identification of purchasing goods at right time and finance department make budget for procurement department for purchasing of goods in the company.

Q4. Prevailing SC norms and regulations (requires some extensive field research to quote
company names and their respective operatives) A. Pepsi Co Supply chain Norms and regulation are given below. Their priority is to collect raw material from supplier first. They deliver their order to those customers who order first . They deliver their order on time.

Q5.

Observation of the centralized or decentralized

purchasing, manufacturing,

distributions or retailing.?

A. Pepsi co company is using centralized

warehouses to respective areas in Lahore.

method. Top level management makes the decisions

and then further implement in other departments. Delivery and distribution of products from different

Q6. Pakistans public sector purchasing organizations and their respective dynamics. A. Q7. How
the documentation of the stages of SC is done in your chosen organization ?

A.

PepsiCo company is using FGI (Finished Goods Inventory) software for documentation of

outsourcing , inbounding, records of stock from warehouse. How many stock are receive and deliver from the ware house for operations.

Q8. How integrated is the companys SC and how different tasks are executed at each
management level?

A. Q9. How does the top management monitor and evaluate the SC performance ?
A. Supply chain are interlink with the management of the company. Top level management monitor the supply chain in every warehouse through online FGI software. Where management check the performance of incoming and outgoing of products in the warehouses at different areas .

Q10. Various procedures on operations training and review at each SC level of yours
respective company.

A. Pepsi company giving on job training for new employees in the different departments. Trainee get training under the supervision of head of the department. Q11. Negotiations and agreements and contingencies involved in the source selection. A. Q12. Is there any product from the supplier or the manufactures which has any patents.? A.
There is no patents of any product of supplier and manufacture because there are so many supplier in beverage industry who supplies same raw material to the competitors and then company make their own formula to making of finished goods.

Q13. Rules and polices in selection and contracting of suppliers.

A. There are so many suppliers of products in the beverage industry . Pepsi co increase the bargaining power of buyers and make deals and negotiations with supplier in the industry to purchasing of goods and raw material. Pepsi co chose those supplier who sale their products at cheap rates.

Q14. QA implications in the supplies, receiving, storage and distribution of the company.

A.

There is a quality department named as General Managing Quality(GMQ) department. In which they check all the receiving and delivery of supplies of product in the company. And check the storage and distribution of product according to the quality standards.

Q15. Roadmap for supplier management (finance, administration etc ) A. Selection and rational use. Q1. An overview of the PS( Pakistan standard and its typical dealings in purchasing and
supply chain management.)

A.

Q2. List of supplies of company and their needs.?

Products/ supplies Beverages glass bottles Pet flakes Wrappers,Labels,PVC shrink,Bags Beverages Tin Cans 330ml Syrup,carbonated water,sugar and water Suppliers Ghani group of companies Enception enterprises,iSarif Ecommerse Pvt Ltd Rotectec Pvt Ltd SMY.Co Pepsi cola international (PCI)

Q3. Strategies and aims to develop the existing SC standard. A.

Product forecasting and acquisition Q1. Any guideline available for procurement planning. A. Pepsi company make their procurement planning according to their demand, make their procurement planning according to the forecast of demand.

Q2. Information regarding products including any technical and physical characteristics A. Q3. How various tasks like need identification, auction documents, selection ( qualifiers and
order winner ) or contracts, delivery and distribution management are carried out?

A.
Q4 Names of person with their designated work areas at each stage.

A.

Designated work
Head of supply chain Dipti supply chain manager Assistant manager supply chain Warehouse Manager Inspector Supervisor

Names
Mr.Amar shakeel Mr.Imran Hafeez Mr.Zulfiqar Mr.Kashif Mr.Nadeem Ahmad and Mr.Hafiz shouqat. Mr. Muhammad Hafeez

Q5. Local and international prices of the products / supplies. A. Products Local prices International prices

Pepsi bottle 250ml Pepsi bottle 500ml Pepsi bottle 1.00ltr Pepsi bottle 1.5ltr Pepsi bottle 2.25ltr Pepsi Tin Can Pepsi Sting 250ml Pepsi Sting 500ml

Rs.18 Rs.40 Rs.55 Rs.80 Rs.105 Rs.40 Rs.25 Rs.45

Product Receipt Q1. How does the company carry out the inspection of the received supplies/good. Formal procedure for that ? A. There is formal procedure for inspection of received supplies and good by general quality
management department . where quality manager check the supplies according to their standard.

Q2. Basic criteria for selection or rejection of good received.

A. The physical characteristics of all purchased goods are responsibility of General Managing Quality department. GMQ dept check the quality and quantity of goods received according to the order. Selection or rejection of goods received on the basis of quality benchmark standards. If goods received are not according to quality standard then they reject the goods. Q3. Previous records of received and rejected products.

Q4. The effectiveness of the firms SC in carrying out QA system and supplier assessment.

Storage and distribution Q1. Standard operating procedure for storing and distributing of the firms commodities in warehouses etc. Q2. Assessment of warehouses condition, logistics network ad suggestions for their improvement. A. The assessment of PepsiCos warehouse is good they have several warehouses in Lahore . the arrangements of products according to demand they arrange their varieties of products separately in the warehouse, they stored their raw material in cold store for protecting from sunlight or temperature, But I suggest them that they should arrange the products according to the time and date, and they should tag their products which they have in their warehouse. Q3. Total inventory turnover and damages, theft or product expiry etc. Q4. Own logistics department or using 3PL services? Current status beneficial/causing loss? How? Information systems under use? A. Pepsi co using 3rd party logistics because it is very difficult to purchase numbers of vehicle to distribute or to deliver the order at time in different areas. 3 rd party logistics are beneficial for Peps Co because its very hard to spend huge amount on purchasing of own no of vehicles for distribution. Q5. List of update Transportation companies the firm can resort to if not having its own logistics department. A. Pepsi Co using 3rd party logistics. 1. Perfect Transport Network (PTN)

2. Agility logistics

These are two companies which holding the distribution of Pepsi co. Q6. Analyze the SC system of firm in the light of information system it is using considering the timings, accuracy and its usefulness. A.Pepsi co is using the software named as Finished Goods Inventory for the information of supply chain in the firm, this software is very usefull for the company for considering the time and accuracy of work in the company. Q7. Quantitative indicators in assessing the performance of the SC.

Human resources 1. The SC workforce? Any training for purchasing, manufacturing, distribution or retailing etc? 2. Future expectations of recruiting specialized SC people or expectations to rely on current workforce in other departments?