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PEPSICO'S DISTRIBUTION AND LOGISTICS OPERATIONS

M A N O J PA N D A 10BSP1077

Bottlers have a large investment in plant, Machinery, Inventory, Transportation, Equipment & other items in the place of purchase & sees to it that customer inventory is maintained appropriately. Historically the bottlers were more important to Pepsi than Coke ,because in Pepsis system they have the responsibility for distribution to fountain operations in addition to managing the bottling operations itself --PepsiCo's Manager Thr real issue facing our competitors is how to reproduce our distribution system

--Leonard Schutzman
(Senior Vice-President)

1898 Pepsi Cola was invented by Caleb Bradham 1904 Bottling of the drink started 1931 Bought by Loft Candy Company Owned by Charles Gruth 1950-Mordenized its Bottling Operations 1960- Introduction Of Cans 1965- Merged with Frito-Lay International(FLI) to become PepsiCo-Inc 1970- Introduction of PET Bottles

INTRODUCTION

Diversified into Restaurant business


i. 1977- Pizza Hut

ii. 1978- Taco-Bell


iii. 1986- KFC 1980- Tried to build Up its bottling business 1999-Sold about 65% stake in PepsiCo Bottling Group(PBG) through an IPO

Two Major Aspects of PepsiCos Operation

i. Distribution
ii. Logistics Management

DISTRIBUTION
Distribution is by following Models

i. Direct Store Delivery (DSD)


ii. Broker Warehouse Delivery (BWD) iii. Vending & Food Service (V&FS) iv. Other

LOGISTICS MANAGEMENT
Two main phases of logistics are

i. Beverage manufacturing to Bottlers.


ii. Bottlers to Retailers

OTHER INITIATIVES
The other initiatives that are implemented by PepsiCo are

i. Chilled DSD
ii. Hybrid system

PEPSICOS FINANCIALS

REVENUE MIX

THANK YOU