INDUSTRY 4.

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Group 6(B)

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Sarmistha Das 21021141127

Sarthak Deo 21021141128

Sarthak Vashistha 21021141129

Satabdi Patnaik 21021141130

Shamira Hossain 21021141131

Shashwat Chandra 21021141132

Shashwati Jasutkar 21021141133

Shefali Mangal 21021141134

SUPPY CHAIN:
A supply chain is a focus on the core activities within our organisation required to convert
raw materials or component parts through to finished products or services. We look upstream
to our suppliers and their supply of raw materials or components into our own organisations
supply chain. In its simplest form a supply chain is the activities required by the organisation
to deliver goods or services to the consumer.

HOW A SUPPLY CHAIN WORKS:

A supply chain can take on the form of a product-based supply chain or that of a service,
where services come together to offer an overall customer service as opposed to a finished
product, an example of this would be the shipping of customers goods, staff, supply of vessel
and fuel are all required in order to provide the shipping service to the consumer.When our
supply chain is connected with that of our suppliers and consumers, we start to build a supply
chain network, where we can then go onto understand the flow of both materials and
information in a much more complex way.
TYPES OF SUPPLY CHAIN:

In its simplest form the stages in a supply chain are as depicted within the Porters Supply
Chain and this can be considered a good guide to a supply chain structure

 Logistics
 Operations
 Marketing and Sales
 Services

LAYS:
Lay's is a brand of potato chips, as well as the name of the company that founded the chip
brand in the United States. The brand has also sometimes been referred to as Frito-
Lay because both Lay’s and Fritos are brands sold by the Frito-Lay company, which has been
a wholly owned subsidiary of PepsiCo since 1965.

Frito-Lay primarily uses the brand name "Lays" in the United States, and uses other brand
names in certain other countries: Walkers in the UK and Ireland; Smith’s in Australia; Chipsy
in Egypt and the West Balkans; Tapuchips in Israel; Margarita in Columbia; Sabritas in
Mexico; Chitato Lite in Indonesia; and, formerly, Hostess in Canada.

In 1965, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, Inc. In 1991, the
company introduced a new formulation of their chip that was crisper and kept fresher longer.
In 2012, Frito-Lay products comprised 59% of the United States savoury snack-food market.

LAYS COMPANY IN INDIAN MARKET:

It was first launched in India in 1995 and within 5 years became one of the largest players in
the potato chip market. Before being launched in India in 1995, Uncle Chips ruled almost
every Indian’s heart. However, in only five years, Lay’s was established as the primary
competitor of ‘Uncle Chips’ and went on to become the largest chip company in the Indian
Market.
The reason it was able to establish a strong foothold in the Indian Market was due to its
diversity and adaptation strategy. It was able to adjust itself in the Indian market based on the
geographical locations and the citizen’s taste buds—one of the most iconic flavours of it
being Magic Masala (literally means Magic Spice).

Affordable packet sizes were introduced for various occasions ranging Rs.5, Rs.10, Rs.20,
and Rs.25. As per research, more than 72% of people found the price worthy. As per Statista
Lay’s had 50% Market share of potato chips in India in 2016.

SUPPLY CHAIN IN LAYS:

RETAILER: After leaving the distribution centre, the chips are delivered to different
grocery stores, gas stations and even vending machines.

SUPPLIER: Lay’s potato chips are purchased at a variety of retail stores. You can even
purchase them online directly from the website.

In 1932, C.E. Doolin entered a small San Antonio café and purchased a bag of corn chips. Mr
Doolin learned the corn chips manufacturer was eager to sell his small business, so he
purchased the recipe, began making Fritos corn chips in his mother’s kitchen and sold them
from his Model T Ford.

That same year, Herman W. Lay began his own potato chip business in Nashville by
delivering snack foods. Not long after, Mr. Lay purchased the manufacturer and formed H.W.
Lay & Company. The company became one of the largest snack food companies in the
Southeast. In 1961, H.W. Lay & Company merged with Frito Company, becoming Frito-Lay,
Inc.

In 1965, Frito-Lay, Inc merged with Pepsi-Cola to form PepsiCo

CONSUMER: After the Lay’s chips are delivered, consumers are able to purchase them and
enjoy them! There are currently 148 varieties of Lay’s all across the globe.

The company says it has 80 farms in 27 states growing potatoes all around the world.

LAYS POTATO CHIPS PROCESSING AND PACKAGING.

Potato Unloading and Storage: - Raw potato handling is simplified as it
enters the facility with equipment to unload and store potatoes prior to
processing. Truck dumpers, dirt removers, transfer, and bin storage systems
handle large potatoes easily and gently.

Gentle-Flo Storage and Handling System

A modular, programmable, short-term storage solution for fresh produce capable of selective
filling, auto-levelling, and variable speed discharge.

Electroporation
This machine uses Pulse Electric Field Processing (PEF) to significantly increase chip
crunch, taste, and texture while lowering acrylamide production and oil content. The
technique also eliminates or minimizes the requirement for blanching.
Electroporation using E-FLO
The patent-protected E-FLO Electroporation System uses Pulse Electric Field Processing
(PEF) to achieve higher yield and low process costs, as well as a reduction in acrylamide oil
production content, for a tastier, healthier result.

Blanching
Before you put the potato slices in the fryer, blanch them. All blanching devices are designed
to remove sugars and fines from potato slices before they go into the fryer, resulting in lighter
coloured chips. Washers separate slices, eliminate clusters, and feed a mono-layer of slices
across the width of the fryer for consistent frying.

Washer and conditioner for potato slices

Controlled washing or blanching of potato slices is possible thanks to the versatile design.
When utilising different grades of potatoes, choose between hot water blanching or cold
water washing to preserve constant chip quality.

Fryer for Potato Chips

The majority of the world's potato chips are made in this market-leading fryer. Our potato
chip fryer is the industry standard, delivering better product quality, clean operation, and
ultimate dependability.

Two-Stage Coating System

The Spray Dynamics Two-Stage Coating System provides consistent, uniform application of
liquid and dry coatings to a variety of product applications.

Incline Transfer Conveyors

Place things where they'll be needed. Clean-up time and efficiency are greatly reduced
because to the plant-friendly modular design.

Flexible Strip-Pack Applicator

The Flexible Strip-Pack Applicator creates handy ready-to-display hanging strips of bagged
products, assisting with point-of-purchase sales.

Frito-supply Lays chain focuses on three things: 

1) High volume manufacturing, 

2) Working as an integrated organisation,

3) Brand-name position.

Frito- transportation Lays costs for

fresh items to warehouses account for 5% of
overall product costs, whereas energy
(electricity and gas) accounts for 80% of total product costs (PepsiCo, 2013), prompting the
company to seek out energy-saving options.
Both supply chains must deal with the following issues:

 1. Reduce the cost of procuring resources;

 2. Reduce delivery costs as much as possible.

3. Provide top-of-the-line products and services.

4. Has a low cost of labour and capital.

5. A demand prediction has been developed.

Decisions of OM applied at Frito-Lay are:

• Product design: Frito-Lay has more than 40 distinct product lines examined for profitability,
including Cheetos, Ruffles, Tostitos, and Doritos. From developing new product lines to
meeting the changing demands of customers.

• Quality: A minimum criterion for each ingredient, quality and purity, must be met.
Shipment, reception, and manufacturing cost limits are also used to determine quality.
• Process: Frito-uses Lay's a production focus approach and particularly specialized
equipment to produce their products, and the amounts of each component must be kept
consistent.
Frito-Lay, a snack food corporation, uses Route Sales Representatives (RSRs) to supply and
maintain snack food shelves in every shop. Frito-Lay presently lacks a mechanism that can
effectively forecast cannibalization or the impact of a new store opening or shutting on
nearby locations of the same chain. 

The purpose is to filter through 1900 stores in a metro region to evaluate how cannibalization
affects them. A Microsoft Access software was designed to address the issue that allowed
users to filter stores by location or if they were open for the whole three-year period.

The long-term and short-term consequences of a store opening or shutting are examined
separately. The long-term impacts are first investigated by removing seasonal and annual
tendencies. Because there is no prominent oscillation throughout the year, seasonal patterns
are considered negligible. 
Then, yearly trends are eliminated by doing an individual regression analysis between the
introduced store and a nearby store and following the sales changes on control charts. 

The distance between the adjacent and introduced stores is shown against the sales changes in
a scatterplot. The data is fitted with a trend line, although there is minimal connection.

The long-term implications are ambiguous because the model does not account for several
factors that might alter sales statistics. Before and after the store opened, the short-term
impacts were examined using a combination of control charts, percentage changes, and sales
averages.

 For mass merchandisers and supermarkets, same-store cannibalization was the most
statistically significant interaction. This backs up Frito-long-standing Lays policies.

Summary
Lays is a brand of potato chips, as well as the name of the company that founded the chip
brand in the United States. The brand has also sometimes been referred to as Frito-Lay
because both Lay's and Fritos are sold by the same company. Lays has been one of the most
famous salty snacks for 75 years. Herman W. Lay began his own potato chip business in
Nashville the same year. Lays potato chip fryer is the industry standard, delivering better
product quality and clean operation. The patent-protected E-FLO Electroporation System
uses Pulse Electric Field Processing (PEF) to achieve higher yield and low process
costs.Frito-Lay has more than 40 distinct product lines examined for profitability, including
Cheetos, Ruffles, Tostitos, and Doritos.
Frito-supply Lays chain focuses on three things:
1) High volume manufacturing,
2) Working as an integrated organisation,
3) Brand-name position.
Lays costs for fresh items to warehouses account for 5% of overall product costs, whereas
energy (electricity and gas) accounts for 80% of total product costs.

Conclusion
Frito Lay has been successful over the last couple of years in dominating both the US market
and the Indian market. The reason it was able to establish a strong foothold in the Indian
Market was due to its diversity and adaptation strategy. Rationalizing product mixes and
trimming the long tail have always been a consideration for consumer-facing brands, It was
able to adjust itself in the Indian market based on the geographical locations and the citizen's
taste buds. Their unique product design and the quality standards that were maintained helped
them build a large customer base. Frito Lay is changing its approach of simplification in
supply chain to a more complex one where the team has embraced complexity to meet new
customers where they are. Logistics will play an integral role in the movement of inbound
materials and outbound goods in order to ensure the finished product flows downstream to
our consumer.