Mis k18406 Cuoiky Nhom12 SCM

Lecturer: Ho Trung Thanh
01 Nguyễn Thanh Hương K184060719
02 Dương Lê Cao Kỳ K184060724
12
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03 Lương Gia Huy K184060716
04 Đinh Hữu Nam K184060736
05 Trần Xuân Lộc K184060729

01 SCM INTRODUCTION
02 COMPANY INTRODUCTION
03 SCM IN COMPANY
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EXISTING PROBLEMS
04 AND CHALLENGES
05 SOLUTION
06 PROJECT EVALUATION
PROCESS
DEFINITION 1. SCM INTRODUCTION
Supply Chain Management is the process of planning, implementing, and controlling the operations of supply chain
with the purpose to satisfy customer requirements as efficiently as possible.
In a supply chain, a company links to its supplier upstream and to its distributors downstream in order to serve its
customer.
Managing Supply Chain for Global Competitiveness takes a strategic look at all of the core functions of global supply
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chain management which includes product design, planning and forecasting, sourcing, outsourcing, manufacturing,
logistics, distribution, and fulfilment.
2
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COMPANY INTRODUCTION
PEPSICO
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Development strategies, visions, goals
and missions of Pepsico
Visions
“Be the global leader in convenient foods
V and beverages by winning with purpose.”

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Development strategies
-Market Penetration Missions
-Product Development
D M “Create more smiles with every sip and
every bite.”
-For consumers
-For customers
Goals G -For associates and communities

-For planet
-For shareholder
- Tackle the shared challenges they face.
-Help build a more sustainable food
system
Hierarchy Structure Of Pepsico
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Information System
TPS PEPSICO MIS PEPSICO

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DSS PEPSICO EIS PEPSICO

3.SCM IN PEPSICO
UPSTREAM Some suppliers of Pesico
t
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SCM IN PEPSICO
UPSTREAM
The relationships of Pepsico with supplier
To meet the code of conducts, all suppliers are given the Supplier Code of Conduct (SCoC) in the initial contracts to
guarantee accountability.
There are four dimensions Pepsico has for supplier standards:

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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

SCM IN PEPSICO
DOWNSTREAM
Distribution Network And Logistic Management Pepsico's Relationship with Retailer

PepsiCo used completely different PepsiCo additionally created its supply
distribution strategies to bring its product chain improved by establishing a
to promote relying upon product collaborative and cooperative relationship
characteristics, native trade practices, and with its retailers. One such example was
customers’ desires. It delivered fragile its relationship with Wegman’s retail.
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and unpreserved product that were less PepsiCo approached Wegman’s with a
possible to be impulse purchases, from its proposal for the Frito-Lay line that
manufacturing plant and warehouses to controlled two fifth of the world market
client warehouses and retail stores. place for salty snacks and PepsiCo
PepsiCo used third party foodservices and products.
vending distributors to distribute its
snacks, foods, and beverages to
restaurants, schools, stadiums, businesses,
and different locations.
SCM IN PEPSICO
DOWNSTREAM
As of 2011, PepsiCo was continued with its efforts within the direction of getting a well managed supply
chain and of strengthening its relationship with all its supply chain partners. In January 2011, PepsiCo
modified the distribution system of its Gatorade products from warehouse delivery to “Direct to store” at
convenience stores through each company owned freelance bottler within the United States and Canada.
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Distribution
The company’s products reach the market through
the following three channels: direct store delivery
(or DSD), customer warehouse, and third-party
distributor networks. PepsiCo chooses the relevant
distribution channel based on customer needs,
product characteristics, and local trade practices.
SCM IN PEPSICO
Difficulties without Just-in-Time
When an operation of the company was not just-in-time based, the demand or production planner strived to optimize
production-oriented goals and objectives such as equipment utilization, labour efficiency, throughput and uptime.
Optimizing these goals often leads to run large batch sizes that are dependent on the availability of raw materials. This
optimizes the equipment and labour utilization but the production planners and managers had not been looking at the
expense of the bigger picture. The sourcing or purchasing managers strived towards reducing company's spending
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overall.
Purchasing managers focused on getting the best price, not putting into consideration the supplier performance and
reliability.
The logistics/transportation manager was tacked with getting raw materials in and the finished goods out of the
production process and seek to optimize the transportation and distributing network. This manager focused on the lowest
cost and reliability of the logistics or transportation solutions. But lowest cost could only be attained if the purchasing
team negotiates a delivered cost package deal with the supplier and the supplier is responsible of the reliability and
performance of the carriers or transporters.
SCM IN PEPSICO
Improvement with using Just-In-Time (JIT)
When it comes to delivering high cost and perishable products to

manufacturing sites, just-in time (JIT) remains one of the most cost-
effective supply chain solutions. In JIT process, on time delivery is an
absolute necessity.
Just-in-Time (JIT) is a philosophy that defines the manner in which a

manufacturing system should be managed. It enhances customer
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satisfaction in terms of availability of options, assurance of quality,

prompt delivery times, and value of money.
The Pepsi brand and other Pepsi-Cola products accounted for nearly
one-third of the total soft drink sales in the United States. In order to
ensure that PepsiCo's concentrates reaches bottlers as needed during
the production had to reach them JIT, they partnered with 3PL
provider Penske Logistics to manage its transportation. Penske also
provides warehouse management for two Pepsi distribution centres in
North America.
SCM IN PEPSICO
I2 Transportation
I2 Transportation is a part of end to end solution for planning,

execution, and management of the entire transportation cycle.
It is designed to enable an organization to utilize and manage an entire

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transportation network, as well as reduce cost while improving transport

performance.
I2 transportation is designed to employ sophisticated optimization and

data techniques to define and evaluate alternative transportation
strategies. It is also designed to provide comprehensive data
management, analytics, and reporting of key transportation cost and
service trade-offs.
SCM IN PEPSICO
IMPLEMENTATION
PepsiCo set two objectives for transportation management. One was to achieve an on-time delivery rateat
99.1% and another was to reduce transportation costs
In 2000, Penske converted Pepsi's transportation management technology from propriety software
toi2 transportation optimization solution. I2 transportation platform was enhanced with the addition of
interface between the two companies.
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By Penske's putting a solution in place to track and measure every shipment, Pepsi has been able to
provide an on-time delivery performance of well over 99 percent
Pepsi's transportation is consolidated to a central location to reduce costs.
Furthermore, Pepsi's orders are received electronically and optimized to ensure lowest transportation cost.
In summary, PepsiCo used the JIT process to its supply chain management.
SCM IN PEPSICO
I2 Supply Chain Visibility
BENEFITS
• Exception-based management
• End-to-end supply chain visibility and event management tools
• Customer-specific solutions for replenishment, fulfillment, and manufacturing

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• The ability to forecast and respond to supply/ demand events
• The option to move from calendar-based to event-driven planning and re-planning. Increased employee productivity
• Reduced process, personnel, and expediting costs

• Improved customer, supplier, and partner communications.
• Real-time decision support
4.Existing problems and challenges
Porter’s 5 Competitive Forces
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Explain these 5 forces
Who or what is the threats of these forces?
1. Competitive rivalry or competition
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High Coca-Cola
Low switching High number of Company and a
aggressiveness
costs firms multitude of small
of firms
and medium ones
2. Bargaining power of buyers or customers
01 02
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03
Low High access to High availability
switching product of substitutes
costs information
3. Bargaining power of suppliers
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High overall supply Low forward Moderate size of

integration of individual suppliers
suppliers
2. Explain these 5 forces
4. Threat of substitutes or substitution
High performance of
substitutes
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01
Low switching costs 02 03 High availability of

substitutes
5. Threat of new entrants or new entry
Low switching costs
01
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Moderate customer
02 loyalty
03
High cost of brand
development
What is the risk from each force? How do these forces impact the company?
1. Competitive rivalry or
competition
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Most firms in the food and beverage industry are

aggressive, means that they are ready or likely to
compete with Pepsico in this area of industry,
such as in product innovation and marketing,
thereby put a strong pressure on PepsiCo.
What is the risk from each force? How do these forces impact the company?
2. Bargaining power of buyers or

customers
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As noted, consumers can easily shift from one

firm to another, consumers have extensive
information for them to easily make choices
between PepsiCo products and the competing one.
Based on this component, PepsiCo must ensure
customer satisfaction to maximize its profit.
What is the risk from each force? How
do these forces impact the company? 3. Bargaining power of
suppliers
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The high overall supply increases PepsiCo’s

options in acquiring raw materials, thereby
reducing the bargaining power of suppliers.
Which limits suppliers’ control of PepsiCo’s
supply chain and These factors weaken
suppliers’ influence on the company.
do these forces impact the company?
4. Threat of substitutes or
substitution
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PepsiCo consumers can easily shift to these

substitutes, which are easy to afford. This
threat is low to some extent by Pepsi’s brand
image and global present. The brand also
invests a lot in marketing to keep the threat
from substitutes under control. Overall, the
threat of substitutes is a strong force that Pepsi
has to continually contend with.
do these forces impact the company? 5. Threat of new entrants
or new entry
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To say honestly, this threat isn’s that big.

World class brands like Pepsi cannot be
succesful overnight. It takes both large
investment and efforts. From operations to
marketing, all areas require a huge
investment and highly skilled staff. So, the
threat of new entrants for a brand like Pepsi
with strong brand image is minimized.
THE PROBLEM OF PEPSICO
Despite the fact that the supply-chain management
has led Pepsi to gain local fame and popularity, it is
inefficient in terms of cost which reduces the ability 3
of the company to earn higher profits (Menachof,
2001). The discrepancies in demand and supply,
conflicts between channel members, the感谢您下载包图网平台上提供的 PPT 作品为了您和包图网以及原创作者的利益请勿复制、传播、销售否则将承担法律责任！包图网将对作品进行维权按照传播下载次数进行十倍的索取赔偿！
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environmental impact and theft along the way

seriously harm the company’s profitability. With
Cola Cola entering the market, Pepsi needs to
redefine and redesign its supply-chain strategy to
meet the challenges faced in the market and sustain
its position in the country. These challenges are
discussed in detail to provide possible solutions for
the company to improve its supply chain and
marketing channels in the light of existing literature,
theories and models of marketing channels and
logistics.
5.SOLUTION
SOME OF SCM SOFWARE
E2OPEN
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LOGILITY
SAP SCM
SOLUTION COMPARISION
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COMPARISION
SOLUTION
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CHOOSE SOLUTION
PEPSICO Inc. has selected SAP SCM
SAP SCM will provide PepsiCo with a common information systems platform to integrate business processes
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across its enterprise.
With SAP SCM, PepsiCo will be able to streamline distribution and delivery, improve planning and
forecasting, increase information transparency and link supply chain and inventory with customer-facing
activities in a single, integrated process
PepsiCo will implement a range of solutions from SAP SCM, which is built on the Net Weaver integration and
application platform. The implementation of the new system is over a multiyear timeframe for PepsiCo.
Specific plans for prioritization and sequencing are under way.
How will SAP SCM helps the company dealing with Porters 5 Competitive
Forces?
PEPSICO makes sure that all of its suppliers (water, corn syrup, food
colorings, carbonation, plastics, etc.) come into an appropriate plant so as to
keep customers satisfied with no shortages. Too much of additional inventory
is avoided which hangs up resources and cash flows. It uses SAP SCM
Applications which helps in communicating with suppliers and

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generate forecast of demand.
SAP helps in fine tuning their supply chains from a sequential supply chains into
adaptive supply chain networks. Adaptive refers to the ability to rapidly sense and
respond to changing internal and external conditions.
Network refers to ability to have real time collaboration and coordination across all
partners in the supply chain. It is a community of customer focused companies that
share knowledge and resources to intelligently adjust to changing market conditions.
BUSSINES VALUE CHAIN OF PEPSICO
Primary Activities
Inbound Logistics Marketing
Pepsi has a global supply chain and it sources raw Coca Cola is the biggest rival of Pepsi and to maintain its
materials from several nations around the world. competitive position, the company makes a large investment
The company works with thousands of suppliers in advertising and promotions each year. Apart from digital
channels of promotions including social media, the company
around the world to source raw material and

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also uses outdoor promotions to advertise its products and

primarily agricultural raw material. The company for customer engagement. Video marketing has also played a
has established a strong supply chain and key role in growing the popularity of Pepsi brands and
distribution network products throughout the world.
Outbound Logistics
Pepsi has maintained a strong international presence
Products and Services
through its multichannel distribution network. The
A highly diversified product portfolio has also helped the
company brings its products to the market to its customers company find faster growth in terms of overall sales and
through a mix of various sales and distribution channels. revenue.
Pepsi primarily uses direct-store-delivery (DSD), customer
warehouse and distributor networks to bring its products to
the market.
BUSSINES VALUE CHAIN OF PEPSICO
Support Activities
Technology Infrastructure
Pepsi heavily uses technology to maximize the Pepsi has divided its business operations into
efficiency of its global operations. The company also divisions based on geographical regions. This
uses technology for employee training as well as has helped the company with efficient
inventory management and to grow customer management and a leadership model which
relationships. ensures higher success and organizational
productivity.
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Procurement
HRM
The company places a special focus on managing
As of December 29, 2018, Pepsico and its
suppliers, supplier relationships and sustainability in
consolidated subsidiaries employed approximately
its supply chain. Apart from product quality, the
267,000 people worldwide, including
procurement team at Pepsico also oversees other areas
approximately 114,000 people within the United
related to the supply chain like the Code of Conduct
States (Annual report, 2018).
as well as supplier audit and training. This ensures a
continuous supply of good quality raw material to the
company for its manufacturing operations as well as
ethical supply chain operations.
6.PROJECT PROCESS
PERT CHART
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Project Process
GANTT CHART
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Project Process
GANTT CHART
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THANKS
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FOR LISTENING

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Lecturer: Ho Trung Thanh

01 Nguyễn Thanh Hương K184060719

02 Dương Lê Cao Kỳ K184060724

03 Lương Gia Huy K184060716

04 Đinh Hữu Nam K184060736

05 Trần Xuân Lộc K184060729

V and beverages by winning with purpose.”

Goals G -For associates and communities

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TPS PEPSICO MIS PEPSICO

DSS PEPSICO EIS PEPSICO

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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

Distribution Network And Logistic Management Pepsico's Relationship with Retailer

Difficulties without Just-in-Time

When it comes to delivering high cost and perishable products to

Just-in-Time (JIT) is a philosophy that defines the manner in which a

satisfaction in terms of availability of options, assurance of quality,

I2 Transportation is a part of end to end solution for planning,

It is designed to enable an organization to utilize and manage an entire

transportation network, as well as reduce cost while improving transport

I2 transportation is designed to employ sophisticated optimization and

Pepsi's transportation is consolidated to a central location to reduce costs.

I2 Supply Chain Visibility

• Customer-specific solutions for replenishment, fulfillment, and manufacturing

• The ability to forecast and respond to supply/ demand events

• Reduced process, personnel, and expediting costs

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High overall supply Low forward Moderate size of

Low switching costs 02 03 High availability of

Low switching costs

Most firms in the food and beverage industry are

2. Bargaining power of buyers or

As noted, consumers can easily shift from one

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The high overall supply increases PepsiCo’s

PepsiCo consumers can easily shift to these

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To say honestly, this threat isn’s that big.

environmental impact and theft along the way

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PEPSICO Inc. has selected SAP SCM

across its enterprise.

Applications which helps in communicating with suppliers and

around the world to source raw material and

also uses outdoor promotions to advertise its products and

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感谢您下载包图网平台上提供的 PPT 作品为了您和包图网以及原创作者的利益请勿复制、传播、销售否则将承担法律责任！包图网将对作品进行维权按照传播下载次数进行十倍的索取赔偿！

感谢您下载包图网平台上提供的 PPT 作品为了您和包图网以及原创作者的利益请勿复制、传播、销售否则将承担法律责任！包图网将对作品进行维权按照传播下载次数进行十倍的索取赔偿！

感谢您下载包图网平台上提供的 PPT 作品为了您和包图网以及原创作者的利益请勿复制、传播、销售否则将承担法律责任！包图网将对作品进行维权按照传播下载次数进行十倍的索取赔偿！