Topics CoveredLogistics & Capabilities 1. Describe Facilities such as manufacturing, warehousing, retailing. 2. Describe Distribution, if applicable. In case of retailer storage with customer pick-up explain replenishment and customer home delivery, if any. 3. Describe the information infrastructure, if specially set by the organization. 4. If Global network, then explain its global reach
Planning Processes 1. Demand Forecasting methods or processes used, periods, scope (entire supply chain or organization or only function or operation) 2. Aggregate Planning if exist, describe methods used, scope of plan and its utilization 3. Sales and Operations Planning How supply is managed and how demand is managed 4. Inventory Planning Cycle and Safety inventories 5. Sourcing Plans if outsourced then assessment and selection, quality control and performance monitoring plans
Execution 1. Pricing Multi-segment and/or dynamic pricing 2. Plans followed or not. How checking and controlling occurs? How performance is evaluated? 3. Information technology in executing plans and getting, analysing data, what macro processes are catered? 4. How collaborations, coordination and cooperation are achieved in Supply Chain?
History
PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-foryou items to product choices that contribute to healthier lifestyles. PepsiCos mission is: To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. (www.pepsico.com)
convenient basis. The company also decides where production plants are to be placed. Haidri has production plants at Peshawar and Hyderabad. The production process is 65% automated. The company has to provide and manage transport for the delivery of products as well as the arrangement of third party services for the procurement of products. The shipping department handles orders and the transport department decides the vehicles for safe delivery. Material planning and sourcing is carried out as well. Sources of supply of raw material both local and foreign are identified and terms and conditions are negotiated. Capacity planning is also done at this stage. Sales forecasting and production planning depends upon the capacity of the organization with respect to: 1. Production (180,000 converted 250 ML crates per day). 2. Storage: Raw and packing (80,000 Sq Ft) 3. Storage: Finished goods (120,000 Sq Ft) Haidri has a procurement budget of Rs 2.9 billion. Approved suppliers cannot go beyond this budget. The supplier is audited by the most cost efficient quality control department. Distributors are also decided by the company, keeping in mind past performances. The company has increased its distribution capacity from one to six filling lines during the last few years lending it a competitive edge over Coca Cola.
Supplier
Manufacturer
Distributor
Retailer
Customer
Figure 1
Pepsi Sales order and processing: The Shipping Manager receives sales order from Sales Team, distributors through telephone, fax & email one day before dispatch. The sales are made to base distributors on advance payment against orders then shipping manager plans according to the demand of distributors on daily basis.
There are three major sustainable advantages that give PepsiCo a competitive edge as they operate in the global marketplace: 1. Big, muscular brands, 2. Proven ability to innovate and create differentiated products and 3. Powerful go-to-market systems.
PepsiCo's overall mission is to increase the value of shareholder's investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity. A customer while purchasing a bottle of Pepsi will consider product quality, price and availability of the product. Thus, Pepsi in India particularly focuses its competitive strategy as to producing sufficient variety, reasonable prices, and the availability of the product.
After determining the demand uncertainty it is important to take a look at the uncertainty resulting form the supply chain. Pepsi is not a new product and its market is going towards maturation. The company does not have many difficulties in delivering a product and has a fixed delivery schedule (on daily basis). Pepsi hence has a predictable supply and somewhat uncertain demand depending on market conditions.
PEPSI
Highly
Somewhat Responsive
Highly
PEPSI in cities
The efficiency and responsiveness varies according to the consumer needs, implied demand uncertainty, product type and market segments. In remote areas the company focuses on being somewhat efficient as other modes of transportation could turn the product to be highly expensive. According to the company it does not deal with distributors who do not have 20 to 25 vehicles, therefore as the company has focus on cost reduction, uses slow and inexpensive
modes of transportation, the demand is certain, and uses economies of scale in production, the product Pepsi is more inclined towards being somewhat efficient. In cities, the company focuses its attention on being highly responsive as Pepsi has to meet short lead time, meet a high service level, handle a large variety of products and respond to wide ranges of quantity demanded especially at the retail stage.
Drivers of Supply Chain Performance Connecting the drivers with PLC Supply chain strategy: Within the twin cities of Hyderabad and Pune, Pepsi mainly follows a combined cost effective responsive supply chain strategy. The intensive supply of the product is being ensured throughout the twin cities market with the help of several distributors. Pepsi has been able to reach out to all market segments without any delays because of its business maturity and comparative business strength. It has the highest beverages sales volumes as compared to any other beverage in Pune and Hyderabad. Although there is an overwhelming stability in the
product market yet there are some remote areas where there are conditions for a possible stock out due to their remoteness. For addressing this risk Pepsi has financed different whole sellers in those areas to respond immediately. Pepsi in Hyderabad and Pune and in most parts of India can be rightly placed into the category of an ever growing mature business. Responsiveness: In case of Fast Moving Consumer Goods (FMCGs) that target a huge segment of market, responsiveness is a deciding factor for the organizational success. In a typical Indiai market, quick response enables supply chains to meet the customer demands for ever-shorter lead times, and to synchronize the supply to meet the peaks and troughs of demand. Pepsis supply chain has been able to reinforce a greater response to the uncertain and unpredictable market behavior only because it has multisided processing facilities and corresponds to a systematic production network with both dedicated and multi-product facilities. The major focus is to determine the processes that are to be integrated in the supply chain network with their corresponding suppliers, distribution centers and the associated transport links between them. The major considerations in the design are the supply chain responsiveness and profitability.
The framework is based on a motive to create strategic fit between the competitive and supply chain strategy. Pepsi Competitive strategy stands to provide a large variety of products very quickly; simultaneously the supply chain strategy stands to materialize the availability of that variety of products. Pepsi mainly follows a responsive supply chain strategy. Alignment of Pepsis business strategy to a corresponding supply chain strategy is achieved through proper
deployment of supply chain drivers. Pepsi has to deal with different set of market segments simultaneously. Most of the time the approach needs to be responsive enough to grow substantially to be able to compete with uncertain demand, while in many areas demand is certain and very much predictable, so there it incorporates an efficient supply chain strategy. The Inventory Driver: Haidri has established a comprehensive plan to ensure the sufficient inventory levels to keep up with the market demand effectively. For this purpose the main inventory storage has been established within the main plant area Kahuta road, Pune. It has the storage capacity of 120,000 Sq Ft and the area is being utilized both horizontally and vertically. The shipping department is in charge for storage and subsequent displacement of the product orders. The inventory capacity is being utilized and maintained in coordination with the production department and is based on the term production estimates. Apart from the main storage house, Haidri has established more than 10 storage facilities nearer to the market in Pune and Hyderabad. Increasing inventory makes the supply more responsive to the customers. At Haidri Beverages, managers bear a high inventory cost to ensure maximum levels of inventory and to reduce the production and transportation costs. The Transportation Driver: Transportation driver has a large impact on the responsiveness of the business. Faster transportation of the products allows Haidri to maintain sufficient levels of stock on the shelves. Haidris transportation network is the collection of routes, modes and locations along which the product can be shipped. With the help of several distributors the product is being supplied to the market. There are multiple supply and demand points within the twin cities which cater to the market demand. Haidri decides and selects different modes of transportation having different characteristics with respect to the speed and size of shipment. The transportation network has been designed with a view to ensure responsiveness and boost the availability of the product. For Haidri using fast mode of transport increases responsiveness as well as the transportation cost but lowers the inventory holding cost. The Information Driver Connects all the supply chain stages effectively allowing them to coordinate and maximize total supply chain profitability. It is also crucial to the daily operations of each stage in the supply chain. The unit manager utilizes the production scheduling system that is based on information on demand to create a schedule that allows Haidri Beverages to produce the right amount of product. The warehouse in charge uses this information to create visibility of the warehouses inventory items. Information sharing helps this firm improve its responsiveness within the market. It helps to accurately forecast demand and realize frequency of updates, measurements of the effects of seasonal factors influencing the production, measurements of
variances from the plan and the ratio of demand variability to order variability. Timely and accurate information enables the distribution managers to fix potential stock out or oversupply problems. The Facility Driver In order to ensure the responsive strategy implementation, the role of facilities is of prime importance in the supply chain of Haidri Beverages. Pepsi has established a flexible and a product-focused production facility in order to respond effectively to the variability in demand. The storage facilities are designed in order to provide maximum possible capacity for the inventory. The large amount of excess capacity allows the facility to be very flexible and to respond to wide surges in demands placed on it. In alignment with the responsive supply chain strategy the facilities have been geographically located close to the market.
Distribution Channels
Direct distribution: o Delivery of post mix cylinders & handling of key accounts: The key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro which serve as a place for key sale. These are known as national key accounts and are very important in terms of competition. o Export Parties Indirect distribution: o Through Base market distributors o Through Outstation distributors Before delivering the product some certain guiding principles are followed for the assessment of distributors capability by Haidri:
Applicant must have 20 to 25 vehicles (depending on the area). Applicant must have 20,000 cases of empty bottles. Applicant must deposit Rs.1, 000,000 as a security.
Haidri uses light and heavy vehicles for safe delivery of goods to the distributors for timely delivery. It follows the just in time concept which is applicable in Non-seasonal period and not applicable in the seasonal period. Review and Revise Distribution: This is usually done through taking over key revenue areas. If the distributor does not achieve its sales target, the distribution is taken back and an addition of new distributor is done. Therefore Pepsis supply is low supply uncertainty. Some of its supply source capabilities are: Less breakdowns High quality Flexible supply capacity Mature production process
Availability of Pepsi is very high and the product is always available in stock whenever an order arrives. Whenever the distributors feel that after one loading there could be a stock out they place an order to Haidri Beverages in advance just to keep the floor with enough stock in hand. The Distributors have 3 days stock as back up with them in order of any malfunctioning of the plant or other such external factors. Customer Experience for Pepsi has always been positive as they receive the product with ease and on time. The retailers are the direct customers as they place an order to the distributors. There has never been a shortage or a delay for Pepsi in Metro or Pizza Hut which are the key accounts for the company. Order Visibility in Pepsi is not really an electronic phenomenon where you can track your order through computer. It is more of person-to-person contact and one can easily track down their orders through the designated staff in each sector of Hyderabad and Pune or for that sake all over India. Returnability of Pepsi has always been very strong in a sense that unsatisfactory items can be returned and changed on the spot. This is true for both the consumers and the retailers. Pepsi has laid down a system through which they can effectively manage this requirement. The retailers are told to take down the comments and the address or phone numbers from the person who is returning the bottle. It seems at fist that a customer always wants the highest level of performance along all these dimensions, in practice however this is not always the case.
convenience is high and order visibility with manufacturer storage becomes easier. Distributor storage is well suited for medium to fast moving goods and it can also handle higher level of variety than retail stores.
The storage facilities of Hyderabad Beverages are designed in order to boost the timely availability of the product. For this purpose the distributors are fully equipped with facilities that are needed to ensure intensive supply of the product. The storage facilities are designed to contain the maximum possible inventory items that are needed at any given time. Hyderabad Beverages has established several storage units nearer to the market in order to boost availability. Transportation conducts inventory movement from point to point in supply chain of Haideri Beverages. It incorporates a combination of modes and routes at different stages. Transportation choices have a large impact on the responsiveness strategy of the business. Hyderabad has several contracts with several distributors with multiple transport facility that ensure the maximum possible transport of inventory within a short period of time. The distribution does not work between specific supply chain components but it performs a basic function of integration amongst all supply chain components. In case of FMCG like Pepsi, the value of systematic distribution process can not be undermined. The Pepsi distribution system linked the entire supply chain for all product categories. The distribution centers and its information network play a key role in that regard. The major object is to carefully track sales of items and offer short replenishment cycle times. The distributors offer stored deliveries too many retail outlets in the twin cities. Different products are being delivered conveniently on
pre-orders. The distribution system is flexible enough to alter delivery schedule depending on customer demand. The Territory Distributor Managers maintain a contact with the retailers in order to book and place the orders. Whenever a store places an order it is immediately transmitted to the supplier through the distribution manager. Now Hyderabad receives orders from all distribution centers and the shipment department delivers the orders. At the distribution centre, products from the manufacturer are delivered into different trucks and each truck makes deliveries to multiple retail stores. The number of stores depends upon the sales volume. The system works on trust and does not require the delivery person to be present when store personnel scan the delivery. This reduces the delivery time at each store. To support this distribution network they have a transport department which consists of more than 30 ten wheeler trucks in Hyderabad alone. Each truck has a capacity of 1572 Pepsi cans. Pune distribution is made possible through Shehzore and Suzuki because of the narrow and congested roads. The distribution department is in direct contact with the manufacturers and keeps updating inventory levels. They keep in stock spare three days stock to combat external uncertainty. The distribution department is responsible for all the variety of the products in their portfolio. PepsiCos overall distribution network spreads throughout India connecting the remotest of places and providing great customer service. Globalization has increased the competition that Pepsi is constantly coming up with new projects, campaigns and distribution. Pepsi with more than 180% of profits this year and with the annual review of their rates (last revised on 14th November 2007) is looking more and more competitive and as the logo says: Ye Dil Maangay Aur!
Product Life Cycle (PLC) can be divided into several stages characterized by the revenue generated by the product.
Warehouse Operations In pepsi: PepsiCo is having two warehouses at Sangareddy plant, Hyderabad. One stores GRBs (Glass Returnable Bottles) & Aquafina outside the old plant & other storing PETs ( ), Aquafina outside new plant.
Old warehouse Block storage is implemented in old warehouse. For product retrieval, FIFO is followed. Total floor area utilized for finished goods storage is = 19000 sq.ft. GRBs are stored 3 pallets high, whereas Aquafina is stored 2 pallet height. Total pallets storage capacity for GRBs = 2110 Pallets, Aquafina = 450 Pallets As is monthly dispatches per day o During season - 62000 cases o During non-peak months - 40000 cases Actual man hours required & made available o During season 240 men/ day o During non-peak months 100 men/day Current availability and capacity of MHE 60 pallets / hr Vehicles loaded per day o During season - 120 o During non-peak months 80 What is the average storage time of a particular SKU in the warehouse?
o During season - 4 days o During non-peak months 10 - 12 days Four lines are run in old plant 1. CSD GRB line 1 - At production rate of 16 pallets per Hr (200ml) 2. CSD GRB line 2 - At production rate of 16 pallets per Hr (200ml) 3. Hot fill GRB line - At production rate of 7 pallets per Hr (200ml) 4. Aquafina line At production rate of 8 pallets per Hr (1000ml)
New warehouse Racking system is used for storage of finished goods as well as raw material/packaging material. For product retrieval, FIFO is followed. Total floor area used for racking system to store FG = 30000 sq.ft. Total pallets storage capacity for FG is = 5250 Pallets Total storage capacity for FG till 3 pallet ht is = 4650 Pallets Total storage capacity for FG for 4th pallet ht is = 600 Pallets Total pallet storage capacity for RM/PM = 1100 Pallets Duty paid goods which are received through stock transfer are stored on 3000 sq.ft. area, with pallet storage capacity = 650 pallets. Storage is done only up to 2 pallet height. Current availability and capacity of MHE 25-30 pallets/hr Three lines are run in new plant 1. PET line At production rate of 20 pallets per Hr (600ml PET bottles) 2. Hot fill line - At production rate of 17 pallets per Hr (500ml Slice PET bottles) 3. New Aquafina line - At production rate of 15 pallets per Hr (1000ml bottles)
House keeping 1. Floor: Well maintained 2. Structure: Paintwork, dust, : - Very Good 3. Storage Product:
State of packaging mostly well packed, 0.1-0.2% of the times you will find the packaging is not proper or seals are broken. Even Slice 500 ml pallets are wrapped in plastic films to avoid damage & spillage Damage very less Age fast moving SKUs are dispatched sometimes online. During season, stock doesnt stay in the plant for more than 3-4 days. During off season, it can be upto 1 month Spillage Very less Orderliness Very Good
Activities 1. 2. 3. 4. Loading/Unloading dock congestion: It appear Busy & professional Delays in & out of warehouse for orders/trucks Yes Fork Lift trucks movement rates: A bit slow due to presence of racking system Order Picking: Overall Order Picking Rates 25 mins for GRB 50 60 Mins for PET Observe the pickers: Pickers try to pick & load the pallets carefully so that no spilling of case occurs from the pallet. Overall - Very good
Equipment
1. 2.
3. 4.
Inventory kept 7 forklifts - Old Plant 8 forklifts New Plant Age & physical condition of the equipment 8 FLTs from new plant are purchased 2 months back Battery operated, 7 FLTs from old plant are purchased 3 years back Gas operated Maintenance facilities for equipment - Regular Damage to equipment - especially to racking because that indicates aisle width issues or training issues of labor Damages observed in Racks
1. Management visibility Shipping office is exactly in front of the stacking area. So, visibility is good from management point of view 2. Pallet position utilization Excellent pallet position utilization as racking is employed in the new WH which stores product 3-4 pallet ht & in old WH, only GRBs (3 ht) & aquafina (2 ht) are stored without racking. 3. Utilization of height Very good apart from DPG (cans, tetra packs) 4. Width of Gangways Appropriate. Not very narrow, not very wide 5. In case of block stacking- floor markings yes there are floor markings 6. Stock Rotation (E.g. Check expiry dates) clear distinction is made while stacking of FG in racks according to the shift in which it is produced and the type of production (GRB, hot fill etc.). For dispatch, FIFO is implemented. 7. Stock Location In old plant, material is stored in the area of WH which is exactly in front of the production lines. FG from every line are located in front of the line producing it. New plant has a separate WH in which, racking is present Safety FLT practices hazard operators drive safely Stacking/stripping of pallets care is taken by forklift driver. Pedestrian ways - Safe Fire precautions & Inflammable material - Present First aid present at the security booth Sign Postings implemented strictly
Security Spot checks on security staff Very poor records maintained Entry & Exit doors : - Very good Lighting of the warehouse : - Very Good
Demand Forecasting for Frito- Lay Products In Below section we will see how to forecast for fritolay products. Frito Lay India Brands: Frito Lay India Product portfolio:
Category & Variants: Frito Lay India brands comes under two categories. 1) Salty category 2) Break fast category Salty category: Salty category is divided into two categories. 1) Traditional Lehar comes under this category 2) Western salty Further divided into three categories a) Bridge Kurkure, Kurkure Desi beats b) Extruded Cheetos, Cheetos whoosh c) Potato chips Lays, Uncle chips
Salty category
Traditional
Western salty
Bridge
Extruded
Potato chips
Quaker
Lehar
Kurkure
Cheetos
Cheetos whoosh
Lays
Uncle chips
Demand Planning at Frito Lay India: Current Demand planning process at Frito Lay: Forecasting is done based on Primaries at SKU depot level.
Forecast Sheets sent to Regions at the begining of third week of every month Region will send the filled in forecast sheets to HO by the end of third week All India Consolidated demand sheet is prepared for M0, M1 and M2 Based on the consolidated demand sheet S&OP slides are prepared by the end of fourth week S&OP meeting will be done during first week of every month Based on inputs of S&OP meeting demand sheets are modified and M0 demand is freezed Forecast Sheets are prepared during second week of every month and the cycle is repeated
Forecast Sheets are prepared at SKU depot level SM wise and are sent to Regions. In these sheets SM have to fill M0 Latest estimate, M1 and M2 expected Primary and secondary sales at depot wise SKU level. These values are compared against AOP, Yago, M-1, I2M1 and I2M2 values. The sheets at depot level are consolidated to SM Level and SM Wise sheets are consolidated to Region Level. Regions will send the filled in sheets to HO and all these region consolidated sheets are linked to All India consolidated sheet and depot wise SKU level forecast values are captured in the consolidated sheet. This sheet gives SKU Depot matrix, where each cell gives the forecast value of particular combination. In the similar way for M0, M1 and M2 SKU Depot forecast matrix is prepared. SM Wise comparison is done at Brand Pack level in a separate sheet which is used to compare M0 forecast demand against M-1, AOP and Yago. This sheet also gives SM Wise forecasted turnover of M0. Using this consolidated sheet S&OP slides are prepared. Here brand wise forecasted demand is compared with M-1 and Yago for both Primaries and Secondaries. Demand Planner will discuss with all RLMs, Marketing and Sales people in the S&OP meeting about the forecasted demand and the demand is finalized. Modifications are done to consolidated M0 sheet as per the inputs received from S&OP meeting and final M0 demand sheet is prepared. Production Planning will be done based on this M0 demand and the cycle repeats. Sources of data: 1) Primary sales data will be obtained from SAP and DW (data warehouse) at SKU level. 2) Secondary sales data is obtained from WOL at Brand Pack level which will be received from all regions on weekly basis. 3) Tertiary sale data is obtained from Pack report, which is received from Neilson on every month.
Demand Planning Reports: 1) Daily Sales Report which will compare Primary and Secondary sales till last date with Last month, Last Year and Plan data. 2) WOL Report Regions send this report on weekly basis which will give secondary sales volume at Brand level. 3) Brand Pack Report Regions send this report on weekly basis which will give secondary sales data at depot wise Brand Pack Level. 4) Forecast Accuracy is calculated at SKU Depot Level from Aligned Availability Report.
Proposed Demand planning process at Frito Lay: Demand forecasting should be done based on secondary sales data. Secondary sales is the sales from distributors to retailers. Secondary sales advantage is aimed at improving the supply chain related business analytics and will also aid the senior management to make strategic sales and marketing decisions for achieving better sales and performance results for the company. Other benefits of secondary sales based forecasting is: Improved control and visibility of secondary sales and stock information Ability to manage distributor performance using facts and figures Ability to monitor distributors and sales teams efficiency Improved data collection and human resource utilization Improved ability to track new promotions and product information effectively Shortened month-end processing time
Secondary based forecasting should be done at ASM SKU level channel wise.
Templates were designed for each region. The following templates were designed: 1. Template 1: Depot level sheets were designed which were further roll up to SM and Region level. The sheets had O/s, Primary and Secondary sales, C/s in kg and value term for EC ,TT and MT channel. The data had to be entered in cases and further we can obtain in Kgs and values. One depot sheets can be further scaled down to ASM and CE level. Also channel wise distributors were differentiated.Depot level sheets ( working sheets) were prepared were all the depots all India ie for 36 depots and were scaled for 15 SMs.
2. Tempate 2 : TMR Timely Availability Check and Data Integrity Check template was made for all regions. It is used for entering the date on which the TMR is received so that defaulters can be traced. In this we can get SM wise, state wise and region wise. Data integrity check can also be done for any SKU. This check must be done for different SKUs every month. This check will aid in accurate demand Planning. 3. Tempate 3 : ASM level -Channel wise forecast templates were made for 58 ASMs.The parameters included were M-1,M0, M1,M2, YAGO , AOP etc.These sheets were also made ASM wise channel wise can were further scaled up to depot ,SMs and regions. 4. Regional package Regional package was made for north ,east, south and west which contained respective number of depot sheets, SM Package and Forecast sheets Sales data is entered in the webportal every month and can be updated. This can be used for forecasting. Strategies for Outsourcing As part of PEPSICO Responsible & Sustainable Sourcing (RSS) strategy at PepsiCo, they are committed to working in partnership with its suppliers to follow a specific code of conduct in the areas of employee labor conditions, health & safety, environmental management and business integrity, all part of PEPSICO corporate social responsibility (CSR) assurance program. We have updated PEPSICO policies to simplify communications about PepsiCos values and how they extend to PEPSICO supply chain partners. PepsiCo-wide supplier code of conduct explicitly communicates PEPSICO corporate social responsibility expectations to PEPSICOs suppliers and their chain of suppliers. While the vast majority of PEPSICO suppliers are already working to these or similar standards, and may well have supplier standards that reach back into their own supply chains, we continue to work closely with PEPSICO suppliers to ensure they fully comply with PEPSICO code of conduct provided below. Integrating the supplier code of conduct into all new contracts is one way we assure compliance. Additionally, in 2007 PepsiCo joined Sedex (www.sedex.org.uk) as the means for PEPSICO supplier community to articulate and verify their activity in the areas of employee labor
conditions, health & safety, environmental management and business integrity. Sedex is the standard tool we are using to gain visibility into PEPSICO supply chain regarding these issues in a consistent and reportable manner. PepsiCo is pleased to be working with Sedex and other firms committed to making the assessment process easier for suppliers. We encourage PEPSICO suppliers to work with these partners, as well, to identify improvement opportunities, and facilitate corrective action plans to drive Performance with Purpose - achieving business and financial success while leaving a positive imprint on society - throughout PEPSICO supply chain.
Information Systems:
ROLE OF INFORMATION SYSTEMS IN BUSINESS: Achieve operational excellence. Develop new products & services. Attain customer intimacy & service. Improve decision making. Promote competitive advantage. Ensure survival.
Software Costs @ Pepsi Software costs includes : 1. Direct cost of materials & services utilized in developing or obtaining computer software. 2. Compensation & related benefits for employees who are directly associated with the software project. 3. Interest costs incurred while developing internal-use computer software.
ERP in PepsiCo:ERP systems integrate business processes & information from entire enterprise . The system helps in coordinating the operation of business functions. ERP systems are software packages that can be used for the core systems necessary to support enterprise systems. ERP Systems Vendors:ERP vendors into 3 groups : Tier I, Tier II and Tier III
Tier I SAP Oracle Oracle eBusiness Suite Oracle JD Edwards Oracle Peoplesoft Misrosoft Dynamics
Tier IIII ABAS Activant Solutions Inc. Bowen and Groves Compiere Exact NetSuite Visibility CGS Hansa World Consona Syspro
Market Share:-
Do you think that one can keep the customer on the phone throughout this process?
Before ERP