A ppt on PepsiCo. It includes sales and distribution management, Inventory management, production, transportation and logistics, Material Handling, warehousing, Supply chain management, Organizational Structure, Processes and Supply flow of materials used for the production.

1. Submitted by:
Sanket Bhawarkar
Sarang Banubakde
Saurabh Mhase

2. • Its an American multinational food & beverage headquarter in
Purchase, NY, USA.
• It was formed in 1965with merger of Pepsi Cola & Frito lay
Inc.
• Acquired Tropicana in 1998 & Quaker oats in 2001.
• It has mainly 22 product lines generating $1 billion revenue
each year.
• In 2012 it has annual net revenue of $ 43.3 billion.

3. Seasonality
subject to seasonal variations.
• Beverage sales are higher during the warmer
months and certain food sales are higher in the
cooler months
• Weekly beverage and snack sales are generally
highest in the third quarter due to seasonal and
holiday-related patterns, and generally lowest in
the first quarter
• However, taken as a whole, seasonality does not
have a material impact on our business.

4. Focus market
youth
Go getters

5. girls

6. Focus production
pepsi
Diet pepsi
Pepsi max

7. These three together generates a
revenue of ……
$ 15 billion in sales
from retail.

8. Facts and Logos

9. PepsiCo
Asia Europe America Africa
New york
USA
Organizational Structure

10. Raw material for Beverages:
• For drink: Water, sugar, color, caffeine
• For packaging: Tin, aluminum, PET plastic
Sources:
• More than 30% raw material of PET bottle comes
from organic waste
• 10% of packaging is done through recycled
products

11. Raw material for chips and juices :
• Potatoes, oats, apples and milk
Sources :
• European organic farms
• Pepsi looks after the requirements of farmers
and also trains them to get desired size, color
etc.

12. Inventory accounting policy:
• Inventories are valued at the lower of cost or
market. Cost is determined using the average;
first-in, first-out (FIFO) or last-in, first-out
(LIFO) methods.

13. • The Pepsi Bottling Group’s Detroit plant reduced its
number of sensors from 180 to 46
• A decrease of 66 percent, by standardizing it sensors
• Reduced downtime and inventory costs.

14. Category
Dec 29,
2012
Dec 31,
2011
Dec 25,
2010
Dec 26,
2009
Dec 27,
2008
Raw materials 1,875 1,883 1,654 1,274 1,228
Work-in-process 173 207 128 165 169
Finished goods 1,533 1,737 1,590 1,179 1,125
Inventories 3,581 3,827 3,372 2,618 2,522
Inventory disclosure:
(USD $ in millions)
Source: Based on data from PepsiCo Inc.
Annual Reports

15. • Applying manufacturing principles
• Take the work back to where it naturally
belongs— in distribution, Use manufacturing-
like systems and technology to create custom
orders- Shekar Natranjan ( Director – SCM)
• People, process, technology

16. • Fork lift truck for shipping, production and
sugar godown
• Chain conveyer
• Belt conveyer
• Plastic chain conveyer
• Pumps- Water treatment
• Roller conveyer- PET line
• Caser machine- Puts 96 bottles at a time in
crate

17. Transportation &
Logistics• PepsiCo manages 3 million
shipments annually
• Private fleets, dedicated
carriage, direct store delivery,
refrigerated trucks and
straight truck load shipments
• Uses various logistic
techniques
Direct Store Delivery
Broker Warehouse
Distribution
Vending & Food Service
System

18. Major
Distribution
System
Vending and food
Service Systems
Broker warehouse
distribution
Direct Store
Delivery DSD

19. Pepsi
Water
Sugar
Flavorings
sparkling
soda
Components of
Process

20. 8/11/2014

21. Clarifying the water
Filtering, sterilizing, and dechlorinating
the water
Mixing the ingredients
Carbonating the beverage
Filling and packaging
Quality Control
Process
Pyramid

22. LAY’S

23. •plants are certified
according to the ISO
9001:2008 and ISO
22000:2005
standards
•internal and
external inspections,
conducted either by
PepsiCo-Ivi or by the
U.S. headquarters of
PEPSICO
Quality Process

24. •PLI (Pepsi Lipton
International)
• EFET, the national
Hellenic Food
Authority
•other state or non-
governmental
organizations.
Quality Process
contd…..

25. •Quality is spelled as
“Q”UALITY
•Pepsi sabotage
•Strategy by Indra Nooyi

27. • It is the management of a network of
interconnected business
• It spans all movement and storage of raw
materials, work-in-process inventory, and
finished goods.
• It encompasses the planning and
management of all activities involved in
sourcing, procurement, conversion and
logistics management activities
• It also includes coordination and
collaboration with channel partners, which
can be suppliers, intermediaries, third-
party service providers and customers
• In essence, Supply Chain Management
integrates supply and demand management
within and across companies

28. A Supply Chain Flow
Raw Materials
Supplier
Manufacturin
g
DistributionCustomerConsumer

29. Customer
Order Cycle
Replenishment
Cycle
Manufacturing
Cycle
Procurement
Cycle
Customer
Retailer
Distributor
Manufacturer
Supplier
• Clearly defines processes
involved and the owners of
each Supply Chain process.
•Specifies the roles
and responsibilities of
each member and the
desired outcome of the
each process.
Cycle View of Supply Chain:
There are five stages in a supply
chain (Supplier Manufacturer
Distributor Retailer Customer)
and four supply chain process
cycles (customer order,
replenishment, manufacturing,
procurement cycle).

30. Supplier Manufacturer Distributor Retailer Customer
Push-Based Model
Supply to
Order
Produce
to order
Automatically
replenish
warehouse
Automatically
replenish Stock
Customer
Orders
Pull-Based Model
Supply to
forecast
Production
based on
forecasts
Inventory
based on
forecasts
Stock based
on forecasts
Purchase
what is on
shelves
The difference between push and pull-based model is
summarized by the slogan “Make what we sell, not sell
what we make”.

31. With push process execution is initiated in anticipation to a
customer order. Pepsi has a seasonal demand. Just in time concept
is applicable in non-seasonal period and not applicable in seasonal
period. All processes that are part of the procurement cycle,
manufacturing cycle, replenishment cycle, and customer order
cycle are push processes.
Pepsi Sales order and processing: The Shipping Manager receives
sales order from Sales Team, distributors through telephone, fax &
email one day before dispatch. The sales are made to base
distributors on advance payment against orders then shipping
manager plans according to the demand of distributors on daily
basis.
Push/Pull View of Supply Chain:

32. Supply Chain Flow-Pepsi
Manufacturing
plants in
Maharashtra
Chembur Roha Paithan
One truck carries 9 tonnes which includes 550-700
crates (Primary Truck)
Pepsi 300ml GLASS
BOTTLE

33. 1. The Customer and Supply Chain Uncertainty
i. Identifying customer needs
ii. Demand uncertainty and implied demand uncertainty
iii. Uncertainty for the capability of the supply chain
2. Understanding the Supply Chain Capabilities
3. Achieving the Strategic Fit

34. • CnF (group of workers namely loaders, de-loaders, salesmen work per
CnF) There are 13 CnFs in Pune
• Distributor
-70 manpower with distributor
-Distributor supplies to 4000-4500 outlets
i. He supplies in 11 routes with the help of 11 vehicles
ii. 10 vehicles for organized sale
iii. 1 for direct sale
iv. Secondary trucks under the supervision of the driver deliver the
material to the retailer
v. Distributors have 3 days stock as back up with them in order of any
malfunctioning of the plant or other such external factors.
• Retailers

35. • From CnF the secondary trucks leave for the semi urban and
rural areas for the direct sales of the materials . For each day
truck consumes 6-7 L of diesel per day. This kind of selling is
not used for demand forecasting but still generates huge
amount of revenue that is why this practice is being followed
despite having various loopholes.
• One truck carries 3 tonnes which includes 144 crates
• Each crate consists of 24 bottles
• Crate weighs 14.4 kg in case on 200ml full bottle
• Crate weighs 18 kg in case on 300ml full bottle
• Height of 300ml bottle -22cm
• Weight of 300ml bottle-700gms when full
• Weight of 300ml bottle-400gms when empty

36. Thank you !