Arab Academy for Science & Technology & Maritime Transport

College of Management and Technology

Marketing and International Business Department
12th week project outline – Spring 2020/2021

Course Title: Materials and Logistics Management Course Code: EA311

Lecturer: Dr: Abd El Fatah Salem Grade: 20
Name: reg no:

Company: PepsiCo

Phase I:

 The nature of the company (product, service, etc.) (ILO 3.1)

PepsiCo, Inc. takes part in the production, promoting, dissemination and offer of refreshments, food,
and tidbits. It is a food and refreshment organization with a correlative arrangement of brands, including
Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana.

 The hierarchy of the logistics department. (ILO 3.1)

PepsiCo initially had a various leveled hierarchical structure in its initial years. In any
case, after various key consolidations and acquisitions, alongside worldwide extension,
the organization has changed its hierarchical structure in like manner. Coming up next
are the fundamental qualities of PepsiCo's authoritative structure:

Market divisions

Utilitarian corporate gatherings/workplaces

Worldwide pecking order

Market Divisions: The most unmistakable element of PepsiCo's hierarchical structure is

its market divisions. These divisions depend on two factors: business and geology.
Regarding business, PepsiCo's keeps up one worldwide division for Frito-Lay and
another worldwide division for Quaker Foods. As far as topography, the organization
has divisions for the Americas, Europe, and different locales. Coming up next are the
market division in PepsiCo's authoritative structure:

PepsiCo Americas Beverages

Frito-Lay

Quaker Foods
 Latin America Foods

PepsiCo Europe

PepsiCo Asia, Middle East and Africa

Practical Corporate Groups/Offices: This trait of PepsiCo's hierarchical structure

alludes to fundamental business capacities. The organization has worldwide or corporate
workplaces for these capacities. PepsiCo's target in having utilitarian gatherings is to
guarantee corporate control and fast usage of approaches and procedures. An Executive
Vice President or Senior Vice President heads every one of these gatherings. Coming up
next are the fundamental practical corporate gatherings/workplaces at PepsiCo:

Worldwide Categories and Operations

Worldwide Research and Development

HR

Money

Government Affairs and Legal

Ability Management, Training and Development

Correspondences

Worldwide Hierarchy: PepsiCo’s authoritative structure likewise includes an order that

traverses the worldwide association. A pecking order regularly bolsters checking,
control and administration at the worldwide/corporate level. PepsiCo has kept up
significant progression for top-down correspondences, checking and control. This trait
of the authoritative structure likewise gives a method through which PepsiCo limits
deviations from its approaches and procedures.

 The description of different logistical activities that are performed by this company.
(ILO 3.1)

Primary Activities

Inbound logistics: Pepsi has a worldwide inventory network and it sources crude
materials from a few countries around the globe.
The organization works with a large number of providers around the globe to source
crude material and principally agrarian crude material.
The organization has set up a solid store network and dissemination organization.
The coordinated coordination’s capacity of the organization assumes a critical function
in the smooth activity of inbound coordination’s and to guarantee that crude materials
stream into the framework flawlessly.
As of late, the organization has made a ton of interest into its current armada to make it
more effective, modernized, and climate neighborly.
The organization has set up distribution centers at key areas worldwide and in closeness
to its providers to lessen transportation and coordination’s related costs.
The organization additionally utilizes progressed programming for stock administration
and to oversee coordination’s.

Operations: The organization has partitioned its worldwide tasks into six territories or
topographical divisions which include:

1) Frito-Lay North America (FLNA) – PepsiCo’s marked food and nibble organizations
in the United States and Canada;

2) Quaker Foods North America (QFNA)- PepsiCo’s oat, rice, pasta and other marked
food organizations in the United States and Canada;

3) North America Beverages (NAB) – PepsiCo’s drink organizations in the United

States and Canada;

4) Latin America – PepsiCo’s drink, food and nibble organizations in Latin America;

5) Europe Sub-Saharan Africa (ESSA) – PepsiCo’s drink, food and nibble organizations
in Europe and Sub-Saharan Africa; and

6) Asia, Middle-East, and North Africa (AMENA) – PepsiCo’s drink, food and nibble
organizations in Asia, Middle-East and North Africa.

The organization has additionally settled a huge organization of workplaces, dispersion

focuses, stockrooms, plants, and different offices.

Outbound logistics: Outbound coordination’s implies the outward progression of

products from inside the association or just put the circulation and deals organization of
an organization.
Outbound coordination’s assumes a significant function in the worth chain of an
organization and is a basic connection whose proficiency guarantees operational
viability and business achievement.

Pepsi has kept up a solid worldwide presence through its multichannel circulation
organization.
The organization carries its items to the market to its clients through a blend of different
deals and dissemination channels.
Pepsi essentially utilizes direct-store-conveyance (DSD), client stockroom, and
wholesaler organizations to carry its items to the market.
 Be that as it may, the sort of channel utilized relies upon the necessities of the clients,
qualities of the item just as the nearby exchange rehearses.

Products and services: Pepsi offers an enormous and enhanced scope of refreshments,
tidbits, and food items.
The item arrangement of Pepsi incorporates refreshments, low calories drinks just as an
enormous scope of sound tidbits and food items.
An exceptionally expanded item portfolio has likewise helped the organization find
quicker development regarding generally deals and income.

Support Activities

Technology: Pepsi vigorously utilizes innovation to amplify the effectiveness of its

worldwide tasks.
Aside from that, it has kept on developing its interest in advanced innovation and
supportability to improve the productivity of its store network, fabricating, advertising
just as deals and conveyance organization.
The organization utilizes innovation for worker preparing just as stock administration
and to develop client connections.
Aside from operational effectiveness, the focal point of the organization is on
manageable business tasks and consequently it puts resources into innovation to create
climate benevolent arrangements, limit its carbon impression, and influence information
and investigation for serving clients better.

HRM: HR the board is one of the vital zones of key concentration for the organization.
Workers are a wellspring of upper hand in the business and in this manner separated
from pulling in gifted individuals, the organization needs to zero in on their preparation,
maintenance, and ceaseless development.
As of December 29, 2018, PepsiCo and its combined auxiliaries utilized roughly
267,000 individuals around the world, including around 114,000 individuals inside the
United States (Annual report, 2018).

Phase II:

 Does this company apply the supply chain management concepts? Why/ Why not? ILO
3.1)

Yes, it applies supply chain management concept based on of joint effort furthermore,
coordination. The partnership takes numerous activities to claim an extra worked
together and

coordinated inventory network, which may turn into a wellspring of upper hand.

Acquirement of Raw Materials

The crude materials used in delivering PepsiCo's refreshments/drinkables and food

 item was: apple, pineapple juice and diverse drinkable organic product juice condensed,
corn, aspartame, corn sugars, flour, seasoning, grapefruits, oats, oranges, rice potatoes,
sucralose, sugar, vegetable and various oils, and wheat. Crude materials moreover
included bundling material — plastic natural mixes

like manufactured gum terephthalate and polyprotein pitch utilized for plastic
refreshment bottles, film bundling for nibble nourishments, metallic component
aluminum for jars, and furthermore energizes and petroleum gases.

Assembling Operations

PepsiCo used a few advancements at its creation office while it understood that creation
stream wasn't level owing to the incessant breakdown of machine and fumbled stock.
Creation at PepsiCo plants started with the dumping of void bottles from the trucks by
means of the transport and their being moved to the DE palletizer.

Conveyance Network and calculated Management

PepsiCo utilized totally extraordinary dispersion systems to carry its item to advance
depending upon item qualities, local exchange practices, and clients' cravings. It
conveyed delicate and unpreserved item that were less conceivable to be motivation
buys,

from its assembling plant and stockrooms to customer distribution centers and retail
locations. PepsiCo utilized outsider foodservices and distributing wholesalers to disperse
its tidbits, nourishments, and refreshments to cafés, schools, arenas, organizations, and
various areas.

 How does the company perform its procurement function? ILO 3.2)

Procurement of Raw Materials

The crude materials used in delivering PepsiCo's refreshments/drinkables and food item
was: apple, pineapple juice and diverse drinkable natural product juice condensed, corn,
aspartame, corn sugars, flour, enhancing, grapefruits, oats, oranges, rice potatoes,
sucralose, sugar, vegetable and various oils, and wheat.

Crude materials also included bundling material — plastic natural mixes

like manufactured gum terephthalate and polyprotein tar utilized for plastic drink bottles,
film
bundling for nibble nourishments, metallic component aluminum for jars, and moreover
fills and flammable gases.
 How does the company perform the transportation function? (ILO 3.2)

Transportation

Transportation could be a piece of start to finish answer for planning, execution, and
the board of the total transportation cycle.

It is intended to alter an organization to use and deal with a total transportation

organization, moreover brought down expense while rising vehicle execution.
Transportation is proposed to utilize controlled advancement and data strategies to
layout and survey different transportation ways.

It is furthermore intended to give thorough data the board, investigation, and reportage
of key transportation worth and administration compromises.

 How does the company perform the warehousing function? (ILO 3.3)

Stock Management Inventory is an inactive supply of actual merchandise that contain

financial worth, and are held in different structures by an association in its guardianship
anticipating pressing, preparing, change, use or deal in a future purpose of time.
Explanations behind keeping stock Time Uncertainty Economies of Scale 9

Warehouse Management

A warehouse is a commercial building for storage of VARUN BEVERAGES goods.

Varun Beverages has come equipped with loading docks to load and unload trucks; or
sometimes are loaded directly from railways, airports, or seaports. Cranes and forklifts
for moving goods into pallet racks. High-bay storage areas more than 10 meters high,
with some over 20 meters high.

 Explain how to improve the inbound and outbound logistics inside that organization.
(ILO 4.3)

Optimize the Inbound Logistics Process

Building Strategic Relationships with Your Supplier Partners

Decide your most ideal course and work with providers to execute it such that is useful
for the two players. Make a steering guide as a feature of this cycle to plainly
characterize working systems and rules of commitment. Your directing aide will
include:

Modes and transporters to use in specific paths

Rate prerequisites
Administration prerequisites

While steering aides can be physical or advanced, specialists suggest internet directing
aides. They can adjust to changes in the transportation scene, for example, fluctuating
rates.

By executing a steering guide, you can restrict rebel costs by providers. For example, it
presents rate benchmarks and takes out the utilization of non-approved transporters.
Normally, however, a directing aide is best when a specific individual or specialty unit is
accountable for administering and refreshing it.

Developing and Implementing Vendor Inbound Compliance Standards (VICS)

Explicit provider conduct upsets an organization's capacity to deal with a smoothed out,
effective production network. So you'll need to create Vendor Inbound Compliance
Standards (VICS) that all providers must consent to work with your organization. By
strengthening positive conduct and setting up punishments for negative ones, you can
enhance your inbound coordination’s measure.

Remember, however, that it's insufficient to simply create VICS. You should remember
punishments for rebelliousness for the VICS and apply these punishments reliably. For
one, this guarantees providers pay attention to your consistence necessities. For another,
monetary punishments counterbalance the expense of wasteful practices.

Optimize the Outbound Logistics Process

By all accounts, this sounds more straightforward than inbound coordination’s. Be that
as it may, there are a few factors engaged with a fruitful outbound coordination’s
activity. These include:

Warehousing stock

Handling orders

Picking items

Effectively bundling completed merchandise

Shipping completed products to clients

Booking drivers and distribution center staff

Working with outsider transportation organizations (if relevant)

With regards to getting completed products to shoppers on schedule and to their
mentioned determinations, there are steps stockrooms can take to improve their
outbound coordination’s measures.

A large number of your stockroom tasks can be smoothed out with distribution center
administration framework (WMS) or a 3PL WMS. Executing a WMS would improve
your outbound coordination’s operational execution.

Negotiate with Your Carriers for the Best Rates

Everything is debatable. Thus, in the event that you work with outsider transporters,
don't expect that the rate you've been given is the delivery rate you should acknowledge.
Fabricate a relationship with your transporter account administrator. Simultaneously,
investigate likely purposes of exchange. There are a few zones of your transportation
understanding that you can arrange. It is smarter to utilize shipment rule robotization
calculations to streamline the transportation rules.

To begin, cautiously audit all parts of your present transportation arrangement, including
following day air rates and overcharges. Glance through your transportation information
to comprehend where you're going through the most cash.

When you have a comprehension of your transportation movement and business needs,
arrange volume limits or start a RFP cycle to request the best proposals from various
transporters. Here you can check our page to learn best transportation methodologies for
new age satisfaction organizations.

Reduce Your Inventory Costs

Overseeing stock costs keeps stockroom costs low. Keep in mind: the outbound side is
tied in with getting items to clients on schedule. One of the manners in which you can do
this is by requesting more item than you need to guarantee you can quickly react to
request changes.

Watch out however — while stock forestalls stock outs, a lot of it could build your
outbound coordination’s costs. You'll have to pay for staff to examine and check stock,
charges to guarantee the merchandise, lease to store the items, and that's only the tip of
the iceberg. Some helpful procedures for keeping stock costs low are:

Utilizing wellbeing stock recipes

Applying lean administration methods

Embracing a seller oversaw stock (VMI) system

utilizing a stock administration framework