Frito-Lays

Frito-Lays
BY M. FAHEEM ASGHAR (1125110) M. NAYAB GUL (1135118) MBA 2nd (D)

SZABIST ISLAMABAD

Frito-Lays

Type: Owner: Country: Introduced: Related Brands:

Markets: Previous Owners:

Potato Chips PepsiCo United States 1932 Frito-Lay Wavy Lays K.C. Masterpiece Lay's WOW chips Lay's Stax World 1932 - Herman W. Lay

1961: The Frito Company and Lay's merged to form Frito-Lay Inc. 1965: Frito-Lay merged with The Pepsi Cola Company to form PepsiCo, Inc.
Website: http://www.lays.com/

Introduction

Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932 and the H. W. Lay Company, founded by Herman W. Lay, also in 1932.
Frito-Lay is the snack food division of PepsiCo. Currently holding 60% of the market share domestically, 40% globally, and selling its products in 120 countries. Selling approximately 4.5 billion packages of snacks per year. Frito-Lay Company products are known by local names in Spain as Matutano, and Walkers in the United Kingdom and others.

Competitiveness

To achieve competitiveness, the company has learned how to masterfully develop, innovate and manage all dimensions of the supply chain by using high IT systems that permit its greater control over its production processes and distribution network. Suppliers Logistical Movement of Products Throughout the Supply Chain Taking of Raw Materials of Potatoes, Corn, and Packaging Materials Transport Products from its Plants to its Warehouses or Distribution Centers Sales Stores Across the Nation that Carry Frito-Lays Snack Food Products

Competitiveness

Suppliers: Frito-Lays supplier network for potato chip production has fewer than 100 individual suppliers. Frito-Lay approached to those farmers who are willing to concentrate on cultivating a limited number of potato varieties. Long-term contracts with farmers made easier for Frito-Lay to achieve more efficient, effective and profitable economies of scale in other areas of the value chain.
100 individual Suppliers

Inbound

Competitiveness

Logistical Movement of Products Throughout the Supply Chain: Frito-Lay tracks the logistical movement of products throughout the supply chain by utilizing its 848 tractors, 2,251 trailers, and a fleet of thousands of local computer-equipped delivery trucks.
100 individual Suppliers

Inbound

From acquiring the raw materials to final delivery

By utilizing its 848 tractors, 2,251 trailers

Expert System software Known as PAX (Packaging Application Expert) is used to facilitate the Production and logistical processes .

Competitiveness

Taking of Raw Materials of Potatoes, Corn, and Packaging Materials: Frito-Lay takes the raw materials of potatoes, corn, and packaging materials to one of their 41 manufacturing plants in 26 states, including the worlds largest snack food plant in Frankfort, these plants produce 30,000 packages of snacks per minute.
100 individual Suppliers Inbound Manufacturing

By utilizing its 848 tractors, 2,251 trailers

Potatoes, corn, and packaging materials to their 41 manufacturing

plants

Competitiveness

Taking of Raw Materials of Potatoes, Corn, and Packaging Materials: Frito-Lay takes the raw materials of potatoes, corn, and packaging materials to one of their 41 manufacturing plants in 26 states, including the worlds largest snack food plant in Frankfort, these plants produce 30,000 packages of snacks per minute.
100 individual Suppliers Inbound Manufacturing

By utilizing its 848 tractors, 2,251 trailers

Potatoes, corn, and packaging materials to their 41 manufacturing

plants