PepsiCo Is Growing in to a World Class Organization Essay

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PepsiCo PepsiCo is one of the foremost food and beverage companies in the world and sells its products of Pepsi, Frito Lay, Tropicana, Quaker, and Gatorade in more than 200 countries and territories world wide (PepsiCo, 2014). With the large size of PepsiCo and the substantial volume of products produced and sold around the world having a having a swift, seamless, integrated, and cost effective supply chain is essential to the well being of the company. The mission of PepsiCo is to grow its business into a world-class food and beverage company while providing growth to its employees and financial rewards to its investors (PepsiCo, 2014). The supply chain for PepsiCo is an integral piece of the company that needs to run flawlessly in…show more content…
This initiative might not seem like that big of deal to the naked eye but when you take into account the cost savings that Pepsi realizes by reducing storage costs, maximizing deliveries, and by reducing labor by taking advantage of its automated fulfillment technology amounts to millions of dollars in cost savings annually. This improvement to Pepsi’s supply chain strategy supports Pepsi’s overall mission of becoming the worlds premier food and beverage company because all of these cost savings improve Pepsi’s overall financial health, which ultimately translates into financial rewards for its investors.
In conclusion, Pepsi has made great strides in its supply chain that have contributed to Pepsi working towards its company mission but it might be possible for Pepsi to improve its supply chain even further. If 85% of the order is currently built upstream at centralized centers, one might ask why Pepsi still utilizes satellite centers. It seems like Pepsi might be able to take this approach to 100% and build the orders entirely through automated fulfillment technology at its centralized centers and bypass satellite locations all together. If Pepsi were to make this a reality it would be able to close and sell off its satellite centers and save all of the costs associated with these centers. Even if Pepsi kept the new direct-to-store delivery process initiative as described the overall health of PepsiCo as a
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