SUPPLY CHAIN MANAGEMENT

Supply chain management

 Supply chain management (SCM) is the broad range of activities required to

plan, control and execute a product's flow, from acquiring raw materials and
production through distribution to the final customer, in the most streamlined
and cost-effective way possible.
 SCM encompasses the integrated planning and execution of processes required to optimize the
flow of materials, information and financial capital in the areas that broadly include:
 demand planning,
 sourcing, production
 inventory management and storage,
 transportation -- or logistics --
 return for excess or defective products
Benefits of supply chain management

 Supply chain management produces benefits

such as new efficiencies, higher profits, lower
costs and increased collaboration.

 SCM enables companies to better manage

demand, carry the right amount of inventory,
deal with disruptions, keep costs to a
minimum and meet customer demand in the
most effective way possible.
CASE STUDY:- PEPSICOLA
About Supply Chain

 Raw materials that are used in manufacturing it’s beverage and food
products are; apple, corn, rice potatoes, oranges, oats, vegetable and other
oils, wheat, fruit juice concentrates, aspartame, corn sweeteners, flour,
sucralose, etc.
 All these materials come with packaging materials; plastic resin for plastic
beverage bottles, film packaging for snack foods, aluminum for cans and
natural gas.
 After manufacturing the products are then delivered in bulk.
 PepsiCo’s supply chain management and product flow
has three main components:-

 Direct to store delivery model,

 The idea of collaboration
 Integration
 . Distribution strategies are used to bring products to the market depending on the
product characteristic, local trade practices and customers’ needs.
 Fragile and perishable products are delivered from its manufacturing plant and
warehouses to customer warehouses and retail stores.
 Third parties and food services and vending distributors are used to distribute its
snacks, foods, and beverage to restaurants, schools, stadiums, businesses and other
locations.
 All of these technologies are controlled by integrated systems that keep all information
such as; delivery dates, products types and product amounts.
 Taking initiative to have a collaborated supply chain, PepsiCo establish a relationship
with their retailers and customers by proposing them better product lines
There are four dimensions Pepsico has for
supplier standards:

1. Accountability for Supplier Code of Conduct (SCoC)

2. Engaging through code training

3. Reviewing of CSR risks

4. Improvement through third party audit/corrective management

Supply Chain Visibility
Limitations of Pepsico over coke