Supply Chain Mgt of Pepsi

1340 WordsMay 17, 20136 Pages
Supply Chain Management of PepsiCo ------------------------------------------------- Case Details: | Case Code | : | OPER102 | Case Length | : | 14 pages | Period | : | 2005-2011 | Organization | : | PepsiCo. | Pub Date | : | 2012 | Teaching Note | : | Not Available | Countries | : | US; Global | Industry | : | Food and Beverages | ------------------------------------------------- Abstract: In 2010, PepsiCo Beverage Company (PBC), an operating unit of PepsiCo Inc. (PepsiCo), the second largest food and beverage company in the world, received the supply chain innovation award from the Council of Supply Chain Management Professionals (CSCMP). PepsiCo was given this award for its innovative distribution strategy, the…show more content…
| | PepsiCo was given the award for its innovative distribution strategy, the “Direct to Store Delivery model”, that reduced system-wide inventory, eliminated warehouse space constraints, enhanced the potential for unlimited SKU4 growth, and delivered warehouse cost savings. Timothy Thornton (Timothy), vice president, supply chain logistics, PBC, said PBC had to move an increasing number of products every day and company executives had realized that its distribution centers and warehouses were finding this difficult to manage.. ------------------------------------------------- About Pepsico The origins of Pepsi date back to the late 19th century when a young pharmacist Caleb Bradham (Bradham) started selling a refreshing drink called ‘Brad’s Drink’ in his pharmacy. The drink was later renamed Pepsi-Cola after the digestive enzyme pepsin7 used in the recipe. The sales of Pepsi soon started to increase.This convinced Bradham to form a company called the Pepsi-Cola Company. Bradham got an official patent for the drink in 1903 and then started to sell it in bottles. The business showed spectacular growth and Bradham sold 7,968 gallons of the drink in the year 1903. He later started to award franchises to grow his business and the Pepsi-Cola Company’s franchisees spread to 24 states of the US. The strong franchise system developed by Bradham was one of the main reasons for Pepsi’s initial success.

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