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Supply Chain Manaagement at Pepsico
Supply Chain Manaagement at Pepsico
PepsiCo’s overall philosophy of cooperation, integration, and innovation helps ensure its
varied and complex supply chain remains stable, resilient, and flexible.
As a vast, multinational company, Pepsi must input, analyze, and act on an enormous
amount of data to properly manage the flow of its food and beverage products – each
with its own specific needs. For instance, some products require cold chain logistics,
while others require ingredients sourced from multiple regions around the world.
To help ensure agility and adaptability, the company has focused on a couple of
different areas in recent years.
Human Rights
PepsiCo has numerous policies and standards in place to ensure the safety, health,
and well-being of every supplier.
The Global Code of Conduct, for example, lays out clear guidelines for all of PepsiCo’s
suppliers. Touching upon labor practices, environmental management, and anti-
corruption practices, among others, the code of conduct is adjusted yearly as
appropriate. A 24/7 anonymous hotline is available for every partner worldwide.
Pepsi also has a standalone human rights policy, guided by the United Nation’s
Universal Declaration of Human Rights. The company is a signatory to the UN Global
Compact, demonstrating its commitment to universally accepted standards of fair labor
practices and worker rights.
PepsiCo has implemented several policies over the years to create a more sustainable,
environmentally friendly supply chain.
In 2017, for example, the company began its Sustainable Farming Program in India.
This ambitious initiative is focused on promoting responsible agricultural practices that
will lead to better crop yields and improve farmers’ livelihoods—all while protecting the
environment and natural resources.
Along with the aforementioned digital tools and tech, Pepsi has been experimenting
with 3D printing – even creating several ridged potato-chip prototypes to test
preferences among consumers. While this kind of experimentation with production may
not be within reach for smaller businesses, paying attention to emerging tech is key for
businesses looking to stay ahead of the crowd.
In an April interview, PepsiCo CFO Hugh Johnston said that the pandemic may spur
manufacturing changes, saying, “many of us have run supply chains and inventory
levels more leanly than 5 to 10 years ago.” The surge in demand, he said, resulted in a
“scramble to react.”
To aid in relief efforts, the snack and soda giant has launched a $7 million effort to help
communities hit hardest by the global pandemic. This will provide support in a range of
different areas, including testing, health care services, and family and senior housing.