SUPPLY CHAIN PROCESS OF PEPSICO

GROUP MEMBERS:

ALI NAWAZ SOOMRO (15691) ADNAN ALI SHAIKH (15941) SHEERAZ ALI SHAIKH (21202)

ROAD MAP
About PPEPSICO Mission Statement Vision Statement Brands PEPSICO in PAKISTAN Competitors Supply Chain Process Recommendation

PEPSICO COMAPNY
Pepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. Pepsi is a symbol of hygiene, quality and service, all over the world, Pepsi is producing Cola for more than 100 years. Its head office is in New York.

MISSION STATEMENT:

To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy 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
To be the world's best beverage company. Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products. To increase the value of their shareholders investment through sales growth, cost control and wise investment of resources.

NATIONAL AND INTERNATIONAL BRANDS OF PEPSICO

PEPSI WHICH HAS CHANGED ITS LOGO MORE THAN 10 TIMES SINCE ITS INCEPTION

PEPSICO IN PAKISTAN
In 1971, first plant of Pepsi was constructed in Multan. When Pepsi was introduced in Pakistan, it faced fierce competition with 7up, lemon and lime drinks, which was established during 1968, in Multan. Pepsi introduced "Teem" to compete with 7up. Pepsi with 7up enjoys 70% of the market share . Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan. Pepsi also launched its fast food chain KFC i.e. "Kentucky Fried Chicken.

COMPETITOR
A person or Company who is selling the same type of product in the market. Pepsi has a tough competition with Coca Cola.

Close Vs Distant Competitor:

Nestle juice are distant competitors Pepsi and Coke are close competitors

Strong Vs Weak:

Coca Cola and Pepsi are strong competitors. RC Cola and Pepsi are weak competitors.

SUPPLY CHAIN OF PEPSICO

RAW MATERIAL

Martial Requirement Planning:

Sugar, Carbon Dioxide, Ammonia and concentrate as raw material. Concentrate is bought from the franchiser PepsiCo. Sugar is bought directly from the sugar manufacturers of the area. CO2 is prepared within the premises.

Inventory:

Company is not using the quantitative methods for forecasting. Lead time is usually 2 days and in an exceptional case it can be up to 4-5 days.

SUPPLIER

A person or company who provides raw materials to the producers or sellers.

Material Manufacturer/ Supplier(s) Approved from

No.

1.

Pepsi Concentrate

PepsiCo Inc. Ireland & PepsiCo Factory in Hattar Estate. Gatron Pakistan Limited

Approval at the factory Approved form PepsiCo China. Approved from PepsiCo China. Approved by PepsiCo China. Approved from PepsiCo U.A.E, Dubai.

2.

Caps & Closures

3.

Plastic Bottles

Galtron Pakistan Limited Balochistan Glass Mills

4.

Glass Bottles Tariq Glass Limited

5.

Carbonated Water Pakistan Bottlers (Pvt) Ltd.

BEVERAGE MANUFACTURING

Job shop Layout:

It convert different raw materials in unique and requires sequence.

Flow Line Layout:

This is called layout by process. Machines or pieces of assembly equipment are located along the route over which product travel and are arranged in the sequence required by production plan. The path of flow may follow straight line or any other shape.

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Manufacturing Process:
Water Extraction: Here water is tested in lab to check it harness and remove hardness. soft water is used in the preparation of syrup. Preparation of Syrup: Syrup is prepared with sugar, concentrate and water. o heated up to 90 C. This hot syrup is cooled down and stored in the tanks. Here lab testing of syrup is done to check its quality standard.

A.

B.

PRODUCT OUTFLOW

Pepsi Cola International has given franchises all over Pakistan. These companies have installed their plants in different parts of Pakistan with these specified areas and names e.g.

City
Karachi Lahore Faisalabad

Name of Franchise
Pakistan Bottlers Riaz Bottlers Punjab Beverage

The cities in which the Pepsi units are:

Lahore, Sukkur, Karachi, Multan, Hyderabad, Dera Ghazi Khan, Islamabad, Faisalabad, Quetta, Sahiwal Hattar.

DISTRIBUTOR

Distributor maintains the image of the product and the sales in the market.
CHANNELS OF DISTRIBUTION:
A.
B.

Direct Distribution Indirect Distribution

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There are basically two components of distribution:

Storage

The storage facilities of PEPSICO are designed for distributors are fully equipped with facilities that are needed to ensure intensive supply of the product.

Distribution

The storage facilities are designed to contain the maximum possible inventory items that are needed at any given time.

RECOMMENDATION

PepsiCo should use qualitative techniques such as EOQ, ROP, lead time because demand fot product is high. Latest reorganizing efforts are necessary to make it cost effective also making its facility accordingly to modern conditions. To attract the customer in the future PEPSICO have to make extensive effort to give extra facilities to retailers and consumers. The procedure of taking services from the company must be made easier and straight forward not involving long difficult procedure for simple task.