STORAGE AND

WAREHOUSING TECHNIQUES
TERM REPORT

DUA GHANI (23131) | ZAHAIB AHMED (22514) | IRTASH SOHAIL (22027)

 ABSTRACT
The objective of this term report was to get a deeper understanding of the entire storage
and warehousing method. The study provided us with an in-depth understanding of the
working from and to a warehouse. We did thorough research and decided to go with Frito
Lay as the company, as huge it is happens to be extremely famous for its advanced and
efficient supply chain operations.
In conclusion, we were able to get a vivid understanding of the operations that take place
inside the Frito Lay warehouses. We were also able to study their flaws and their methods
to cope with the current coronavirus 2019.

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 INTRODUCTION
Frito-Lay, Inc. is an American affiliate of PepsiCo, which produces, markets and sells corn chips,
potato chips, and other nibbles. Fritos Corn Chips, Cheetos Cheddar Seasoned Bits, Doritos and
Tostitos Tortilla Chips, Lay's and Ruffles Potato Chips, Rold Gold Pretzels and Walkers Potato
Chips are the essential nibble snack products delivered under the name Frito-Lay (in the UK and
Ireland). Each brand generated a combined annual deal of over $1 billion in 2009.
Frito-Lay was originally two independent companies in the mid-1930s, namely Frito Corporation
and H.W. Lay and Company (joined Frito-Lay, Inc. in 1961.). In 1965, Frito-Lay, Inc. merged
with PepsiCo to form PepsiCo. Since then, Frito-Lay has been an auxiliary product of Pepsi-Cola
Company. Pepsi-Cola, through Frito-Lay, is the largest snack company in the United States. In
2009, its product sales accounted for 40% of all "snacks" sold in the United States and 30% of its
non-US business market. In 2018, Frito-Lay North America accounted for 25% of Pepsi's annual
transactions.

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 Doritos tortilla chips

Lay's and Ruffles potato
 Rold Gold pretzels
chips

PRODUCTS

Tostitos tortilla chips
Fritos corn chips
and dips

Cheetos cheese flavored
snacks

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 DESIGN AND PROCESS
With seven products with sales over a billion dollars each, Frito lay is constantly looking for
ways to improve market share. Whether it is packaging, marketing, or new products on the
market, Frito Lay is always looking for a way to creatively design their products.
Frito Lay follows a product focused strategy, or one that builds processes for specific products.
Because they have many products that are high volume and low variety, they can build a process
specific to those products, and they can be mass produced.

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 SUPPLY CHAIN AT FRITO LAY
The supply chain is an important part of the development of the food industry and must be
carefully considered when choosing a supply. In addition, finished foods rely heavily on
perishable raw materials. As a result, the supply chain safely and efficiently transports raw
materials (potatoes, corn, etc.) to the factory to comply with strict production deadlines. For
example, it takes less than 12 hours from the potatoes to be unloaded from the factory before
harvested in St. Augustine, Florida, processed, packaged, and shipped to Orlando. The quality of
fresh products needs to be timely and punctual.
Strict planning to ensure the correct movement of fresh products on automatic equipment requires
reliable systems and effective maintenance of Frito Lay personnel to be trained to identify
difficult problems, and each shift requires professional maintenance personnel. Downtime is very
expensive, and May cause delays in research and maintenance work is a high priority.

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 OPERATIONS MANAGEMENT
Frito-Lay is the main division of PepsiCo headquartered in Dallas, with 38 factories and 48,000
employees in North America. Seven of Frito Lay's 41 brands have sales exceeding S$1 billion:
Fritos, Lay's Cheetos, Ruffles, Tostitos, Doritos and Walker's Potato Chips. Operation is the top
priority of the business-from developing products for emerging markets, meeting evolving
customer needs, adapting to rising ingredient prices, to subtle attention to flavors and
preservatives-OM bears ruthless costs, time, and consistency Sex and market pressure. Below is
information on how the 10 OM decisions apply to this food processing process.
Brand-produced kitchens try new products in the food industry, send them to focus groups, and
conduct test marketing. If product requirements have been defined, a process that can meet such
specifications and required quality standards should be established. At Frito Lay, quality starts at
the farm, which includes on-site inspections of potatoes used in wrinkles and corn used in Fritos.
Through the visual analysis and statistical monitoring of product variables (such as fat, moisture,
seasoning, salt, thickness and weight), the performance can be maintained during the production
process.
Additional quality assessments are carried out throughout shipping, receipt, production,
packaging and distribution.
Frito Lay's production process is designed for high-volume and small-batch production, using
expensive special equipment, and quickly transporting materials through the factory. Product-
centric factories centered on Frito-Lay usually have higher investment costs, tight production
schedules and fast processing Frito-Lay factories are located in the area to help products be
delivered quickly, because freshness is a key issue Hygiene issues and fast processing of products
are essential to efficient layout. The production line is designed to achieve balanced throughput
and high utilization. Cross-trained workers can handle a variety of production lines and have
identified a promotion path for their specific skills. The company rewards employees through
medical, retirement and education programs. Its turnover is very low.

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 LOGISTICS AT FRITO LAY

transportation production of storage

of raw materials, chips
more quality check
specifically quality check
potatoes from
distribution
farm
transportation
to warehouse
quality check
INBOUND PROCESSING OUTBOUND
LOGISTICS
storage LOGISTICS

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 PACKAGING
Packaging to its core level is the “art” the way you pack your product describes a lot about
it. You may hear a quote which says “First impression is the last one” well the first
impression of your product is the way it is packed. Product packaging at the most basic
level helps to secure the product inside. During shipping between the manufacturing
plant and the store, packaging must keep the product secure and must avoid harm while
the product sits on the shelf.
Frito Lays, focuses a lot more on the packaging of their products and they get appreciated
of that. A Frito-Lay leader says that for creative packaging ideas to work, developers must
put the consumer first and create packs that “delight” the shoppers they’re targeted at. In
the marketing perspective, the way your product is packed is important.
There was a great initiative by Pepsi Co brand to cater to younger customers is the
packaging redesign of Lay's entire product roster. Changing the design of the bag to
provide an Instagram-inspired view of the chip inside the bag helps put the packaging
more in line with how food visualization is used by millennial and Gen Z customers. It is a
shot from a "top down" angle," a smaller logo, fewer text, and additional visual elements
are included in the design. A relaunch of the brand's website that highlights the modern
design is followed by the new look.
They also consider the elements of sustainability of the plant Earth, which obviously
builds their brand image as a socially responsible.

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 WAREHOUSING
Warehousing in Frito Lay is responsible for loading trailers with our finished cases. As well as
moving products to warehouse via forklift. Products are handled with care so they not get ruined.
In Frito Lay every move is noted, they have calculated time which fork lifter takes in moving
from point A to point B.

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 WAREHOUSE OVERVIEW AT
FRITO LAY
The warehouse usually as big as of an area of 700,000 square feet. The warehouse consists of ICS
system in action controlling: AGVs, Cranes, Palletizers, Wrappers, directing work to Pickers and
Loaders. CTG Talk (voice recognition directed picking system fully integrated into ICS)

Now, let’s talk about the equipment and machineries used at the warehouse some of which
happen to be powered with the help of artificial intelligence.
Starting with ICS, what exactly is ICS? In simpler words, ICS or Integrated Command System is
a system which enables multiple responders to give out orders and to get a better control over
things being managed at hand. ICS technology has made operations relatively faster and more
efficient than before. Huge warehouses which produce their products in bulks take the help of
systems like ICS to handle their operations making the operations run in smoother ways.

Now, coming to AGVs or Automated Guided Vehicles are machines which are used to carry, lift
and transport goods and products through warehouses, storages or distribution centers without the
help of a driver. AGVs do not need an onboard driver to give them instructions or orders, these
machines are standardized and operated in way that they work automatically following a pattern
of tasks performed.

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 WAREHOUSING OPERATION
AT FRITO LAY

Boxes
Boxes ofof chips
chips ride
ride the
the
rails from packaging
rails from packaging
into
into an
an automated
automated and loaded into
and loaded into trucks
trucks
system
system that sorts
that sorts
them
them

the .. Large
Large Quantities of
Quantities of
the AGVs
AGVs transport
transport single products are
those
those boxes to the
boxes to the
headed to
headed to the
the
high-rise
high-rise storage
storage area
area distribution centers
distribution centers

Smaller
Smaller mixed
mixed
where
where their bar codes
their bar codes products designed for
which is
which is done
done in two
in two
are
are read through aa
read through single quantities
ways.
ways.
scanner
scanner require
require aa team
team of
of
manual
manual hand pickers
hand pickers

Next,
Next, the
the boxes
boxes are
are
then
then the boxes are
the boxes are .. System further hits
System further hits The
The ICF
ICF system
system reads
reads conveyed
conveyed to to an
an area
area
placed on the storage
placed on the storage the products
the products toto fill
fill the
the out the order
out the order to the
to the where
where aa machine
machine
racks
racks orders
orders pickers. loads the boxes
loads the into
boxes into
the trucks.
the trucks.

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RECOMMENDATIONS

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 CONCLUSION
As coronavirus cases continue to surge and a second round of lockdowns looms. After the first
wave of coronavirus infringed on supply chains and emptied grocery store shelves, many
companies are shifting operations to meet consumer demands.
Frito Lay has decided to step up its inventory levels in anticipation of high demand between
Thanksgiving and the Super Bowl. Holiday season is more than often the reason behind an uptick
in inventory levels, Frito Lay has decided to increase its system-wide inventory by one and a half
million cases, to meet the same demands they experiences from the first wave of COVID-19 in
March.
The company had to make temporary cuts to deliver the volume of its most in-demand products
and ensure availability everywhere for consumers because the demands during the lockdown had
surged up so high the company had to assure their customers through their twitter page. Around
ninety five percent of their paused items have returned to the market nonetheless the said
company has taken precautionary measures to prevent any future interruption. The covid-19
pandemic was a situation no one could have foreseen therefore Frito Lay has decided to work on
its management techniques in order to be prepared for the worst possible case. The company has
not only upped investments in supply chain capabilities, but it has also added new production
capacity to a make production more efficient and has increased its staffing levels across the
supply chain for better services.

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