A report about Pakistan beverages limited, a visit was held in pbl nazimabad site area plant and mr AHSAN manager of supply chain give us knoweledge about it.

1. ACKNOWLEDGEMENT
Our thanks to ALLAH with his blessings this report has reached its stage of accomplishment.
This report is a result of comprehensive and much enthusiastic work. We extend our sincerest
thanks to Sir Tauseed Iqbal, for directing this course and making it knowledgeable, without his
efforts and assistance this report would impossible. We also thank for his confidence he had on
us. We are similarly thankful to Iqra University ’North Campus’ for providing this chance. We
hope that the readers of this report can complement the deepness of this study and effort we put
into it.
We are also thankful to Pakistan Beverage Limited for allowing us to visit their site to have more
practical knowledge.
Place Visited : PAKISTAN BEVERAGES LIMITED
Submitted by
Rida(6395)
Abdul Sami (6327)
Professor: TAUSEEFIQBALKHAN
Course : Supply Chain Management

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Contents
Brief History of Pepsi Co Page#3
SWOT Analysis of PepsiCo Page#5
Supply Chain Hierarchy Page#6
PAKISTAN BEVERAGES LIMITED Page#7
Suppliers Page#14
Customer Relationship Management Page#14
Software Used Page#14
Challenges Page#15
Recommendation and solutions for the challenges Page#16
Conclusion Page#17
Brief History of PepsiCo

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One of America’s favorite soft drinks, Pepsi-Cola, didn’t make it to the Taste test stage … several times.
The ability of the product to survive several bankruptcies, numerous management changes, and major
internal squabbles made it an even stronger player in the bid for consumer taste acceptance.
PepsiCo. story begins with the birth of Caleb D. Bradham in 1867. Bradham was born in Chinquapin,
North Carolina in 1867. Chinquapin is a rural community about forty miles south of New Bern, North
Carolina. New Bern is a seaport town which was first settled in 1710 by Swiss and German emigrants.
Caleb Bradham attended the University of North Carolina and the University of Maryland Medical School.
While at the University of Maryland, he worked part-time in a local drug store. When his father's’
business failed in 1891, Caleb dropped out of medical school and decided to open a drug store of his own
in New Bern. This drug store was the first home of Pepsi-Cola, and it was located at Middle and Pollock
Streets in New Bern.
Organizational Structure
Regional Head:

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Regional head is responsible for all the activities which are taking place in Pakistan under any
other head of department. Regional Head directly reports to the head office located in America.
Country Manager:
Country Manager is controlling the other four department heads. He looks after and supports them in
implementing the Pepsi International strategies, policies and rules. At the end he is responsible to report
the Regional Head
Franchise Director:
To look after and to give the moral and practical support Franchise Director uses two other Designations
which are Franchise Manager and the other one is Sales Development Manager. Any query from any of
the bottler can be solved through these two designations.
Marketing Director:
Brand Manager of colas, Brand Manager of Flavors & Brand Manager Aquafina work to support the
Marketing Director. This department is responsible to promote and advertise the products in the country.
No promotion and advertisements can be done by the bottler itself.
Operation Director:
All the activities which take place under the administration of operation head are supervised supported
and controlled by the Operation Director with his two other subordinates i.e. Operational mangers.
Chief Finance Officer:
All the activities like cost evaluation, budgeting, financial analysis and controlling the taxing system etc
are performed under this department with the support of Planning manager, Controller and Business
Analysis Manager. Chief Finance Officer is directly reports to the Country Head.
Type of Ownership:
Ownership of Pepsi is franchise in Pakistan, because Mother Company of Pepsi is located in USA. In
Pakistan Pepsi is working as a franchisor. There are seven franchisers who operate Pepsi Co in different
cities of Pakistan include
1. Riaz Bottler Lahore
2. Pakistan Beverage Karachi
3. Punjab Beverage Faisalabad
4. Naubahar Bottler Gujranwala
5. Haidri Beverages Islamabad
6. Northern Bottlers Peshawar
7. Sakhar Beverages

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SWOT Analysis of PepsiCo
Strengths
Brand equity: it is one of the most prominent and famous brands in the world in the food
and beverage sector.
Customer Loyalty: PepsiCo has an extremely loyal customer base.
Supply Chain: It has one of the best supply chain networks in the world, making the
products available throughout the world. Apart from this they also have a very efficient
reverse logistics associated with it.
Weaknesses
Competition: It has heavy competition from Coca-Cola in their soft drinks category.
Products perceived as unhealthy: Most of the soft drinks of the PepsiCo is perceived as
unhealthy.
Opportunities
Healthy Options: It should work more on improving the health implications of their
products and make the customer aware of the same.
Diversification: Business diversification into different market segments is a huge
opportunity.
Threats
Competitors: PepsiCo’s main competitors are Coca-Cola, Kraft foods, Nestle, Dr
Peppers Snapple Group and Mondelez.
Health Factor: The unhealthy factor associated with its products can take a toll on the
health conscious customers and might lose them.
Challenges

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Product Availability.
Complex Hierarchy
Decision making complex and not timely.
Supply Chain Hierarchy
INTRODUCTIONOF PAKISTAN BEVERAGES LIMITED:
On the 14th of August 1950, one of the most dynamic beverage manufacturers in Pakistan came
into existence. This young business enterprise then launched Pakistan’s first local carbonated
soft drink (CSD) brand, Pakola, which is now uniquely and easily recognizable. Set up in the
coronary heart of Karachi’s Lawrence Road, on a thousand rectangular yard plot, this budding
SUPPLIERS
(PepsiCo)
MANUFACTUR
ER AND
BOTTLERS
(Pakistan
Beverage
Limited)
CUSTOMERS
(Retailers)

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corporation has since blossomed into the biggest beverage manufacturing and companies of
sellers in Pakistan. This is the story of Pakistan Beverage Limited (PBL).
In the years following its inception, PBL overcame many challenges, subsequently becoming the
market leader in beverage manufacturing. It was this stellar overall performance and dedication
to excellent products, that invited the attention of many multinational corporations looking for a
partner in Pakistan. This paved the way for PBL to acquire a franchise license from Pepsi Co,
allowing PBL to become a Pepsi-Cola bottling associate in 1979.
PBL continued to excel as a Pepsi-Cola Bottling Partner in the years that followed. Under the
robust leadership of its chief executive and managing director, Mr Yasin Haji Kassam, his
brother and director Mr Siraj Kassam Teli, and his son, Mr Zaid Yasin, PBL has been capable to
reach tremendous heights such as turning into PepsiCo’s 2015 Global Bottler of the Year,
triumphing this coveted title out of over one hundred PepsiCo bottlers globally. PBL additionally
grew to be the first franchise in Pakistan to produce and promote one hundred million cases (8
oz.) of Liquid Refreshment Beverages (LRB). With the current induction of Mr Nusair Siraj Teli,
PBL is poised to pursue and attain even increased heights.
● Mission
Our aim and objective is to provide branded beverages of the absolute best quality and
value that the provision of these fulfils the needs, expectations and aspirations of the
consumers we serve. This has and will continue to our customers to reward us with
market leadership, sales and profits, enabling our people, our stakeholders and the
communities we stay and work in, to prosper.
● Vision
We aspire to be, and be constantly recognized as the biggest and most revolutionary
beverage manufacturing and promoting corporation in Pakistan. We purpose to supply
the most numerous branded beverage portfolios, supported with the aid of large-scale,
kingdom of the art manufacturing and impeccable patron service.

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PAKISTAN BEVERAGES LIMITED BRANDS:
Pakistan Beverage limited consists of some of the world's most recognized and trusted brands.
Brands of PBL are listed below.
▪ Aquafina
“Purity Guaranteed…”
Aquafina was launched in Pakistan in 2005 and since then it has rapidly turn out to be
one of the leading manufacturers in the country. Aquafina is pure to the core as it is
purified via a rigorous, seven step purification method called Hydro-7.
▪ 7UP
7UP, the refreshing clear drink with a natural lemon and lime flavor was created in 1929.
7UP's lemon refreshment preferences you up and leave you feeling upbeat. Its sparkling,
crisp lemon and lime flavor continues you effective in opposition to all odds.
▪ Mountain dew
Because of its active, high-energy, extreme citrus taste, mountain dew exhilarates like no
other. Mountain dew is liked by the people who are adventurous.
▪ Pakola Fruit Plup

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Pakola Products Limited (PPL) a sister concern of Pakistan Beverage Limited, a
franchisee bottler of Pepsi Cola International (PCI), manufacturing Pepsi Cola beverage
portfolio on the grounds that 1979. As Pakistan’s leading Beverage Company, new
markets were tapped via Pakola Products Limited (PPL), such
As Pakola flavored milk and Slice Juice Drink have been launched in 2006, now one of
the set up manufacturers as a end result of their freshness, excessive vitamin content and
vibrant packaging.
▪ Mirinda
Mirinda is an international soft drink brand from Spain that was launched in Pakistan in
1991. Mirinda has flavor of fresh oranges.
▪ Pepsi
Pepsi has emerged as a friend to youth and youth culture. Over generations, kids have
grown up with Pepsi and have shared an emotional connection with it in contrast to with
any other cola brand. Be it parties, hangouts with friends, or just every other day at home,
a day is in no way whole besides the fizz of Pepsi!
▪ Slice
Slice was launched in Pakistan in 1993 as a refreshing mango drink and quickly went on
to become a leading player in the category.
▪ Sting
Sting Energy Drink is a carbonated energy drink from PepsiCo International. Sting comes
in three flavors, such as original Gold Rush, Gold (with Ginseng), Power Pacq (Gold
Rush with Malunggay), Power Lime (Kiwifruit/Lime) and Berry Blast (Strawberry).
SUPPLY CHAIN STRATEGYOF PBL:
Supply chain strategy of a company discusses how the company is going to manage their
warehouses, inventory, transportation and etc. Supply chain strategy of Pakistan Beverages
Limited is,
I. Facility:

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As the competitive strategy of PBL is cost leadership, they build their warehouses in the
areas which are centrally located between their customers and supplier. It helps them to
reduce the transportation cost.
Other than that, PBL does not hold large inventory and stocks in their warehouses which
ultimately results in reduction of overhead cost.
II. Inventory:
Supply chain strategy of Pakistan Beverages Limited is to reduce the cost of inventory
and for that they do not hold large inventory stocks. Their maximum inventory turnover
rate is 3 days.
III. Transportation:
Supply chain strategy of Pakistan Beverages Limited is to have the best transportation
and they have 300 to 400 vehicles just in Karachi. This helps them to ensure the
availability of the product 24/7 at every place.
From the above analysis we can conclude that the transportation ensures the availability
of product. The facilities and inventory helps to reduce the cost.
As the competitive strategy and supply chain strategy of Pakistan Beverages Limited
have same goal, we can say that “Pakistan Beverages Limited” is strategic fit.
WAREHOUSE OWNERSHIP CLASSIFICATION:-
Private Warehouse:-
The company has private warehouse that owning the products stored in the facility. They think
that the private warehouses give freedom to the company to manage their inventories and they
are more flexible than the public warehouse. By using private warehouse the company can easily
control or manage all the operations of the warehouse by itself. They also able to control each
and every step or getting details of the process done in the warehouse. The purpose of private
warehouse is that it is less costly and they can change the placing according to the need for
convenience. The one of the warehouse established within the company so it is easy for them to
store their product in the warehouse safely. Through private warehouse they have almost
absolute control regarding their products and manage their placing and supervision. They
schedule their incoming and outgoing inventories on daily bases. They also ensure the overall

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security of their warehouses as the public warehouse don’t get the surety of the security so it is
beneficial for them to have private warehouse as compare to public warehouse for their business.
But they bear high fixed costs and utilities for their warehouses.
1. Whether or not to build warehouse:
Pakistan Beverages Limited decided to build warehouse because they believe that
warehouse plays a vital role in managing the supply chain of the inventory.
2. Number of warehouses:
Pakistan Beverages Limited has numerous warehouses all over the Pakistan. In Karachi,
PBL has 4 warehouses out of which 3 are owned by them and for 1 they pay rent.
3. Specific Location Of Warehouse:
Pakistan Beverages Limited chose locations which are centrally located between their
customers and supplier.
Some of their warehouses are located within the factories of PBL.
Location Analysis:
Every company needs to setup their warehouse in order to store their inventories. It is very
necessary to first know the location before we established a warehouse. Location should be good
enough for storing inventory and distribute goods. Pakistan Beverages Limited ensure that their
every warehouse should be built on those areas from where they can be easily connected to both
customer and supplier, and there should be enough space for storing their inventory.
● Location Factor Rating:
The location factor rating technique may be used when many sites are available and every
site has some appealing characteristics. PBL (Pakistan Beverages Limited) score each
side to identify which location is best enough for their warehousing.
● Center of Gravity:
The center of gravity technique may used when a company have lots of customer and
supplier in different geographical location, so company should identify the central point
to built a warehouse from where the both suppliers and customers are near. Pakistan
Beverage Limited (PBL) has a direct interaction with both, so they make sure that their
location must be in center of the map. Being a FMCG product their beverages supplies in

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a bulk quantity to retailer and suppliers on daily basis that’s why they established their
warehouses in a mid point.
Site Selection:
Once they are done with a site selection PBL then take a look on different aspects of that
location. The basic key element is that a labor cost and also labor can easily be hired for that
location. Now utility expenses and taxes are the most common factors which companies ignore
but PBL follows there international protocols when they select a site for their warehouses, they
thoroughly check that there should be no mess in any area there should be no problem with
utility and taxes must be clear. Transportation cost must be minimized and reached on desires
places on timely basis. The land of that site much be strong enough to support the structure of
warehouse and all the necessary utilities must be available there.
Design Criteria:
PBL warehouse design criteria address physical facility characteristics and product movement.
They should consider three factors in the designing process;
● The Number of Stories:
It is necessary to decide how many stories company should established for storing their
goods but it’s good to establish a single story warehouse because it can help labor to
move product easily by using less energy. Pakistan Beverage Limited always construct a
single story warehouses because the goods in a bulk quantity and must be supplied on
daily basis and due to single story warehouse it’s easy for their labor to move products
from one place to another in less time.
● Height Utilization:
The height of PBL (Pakistan Beverage Limited) warehouses is approximately 100 to 120
feet high and they use fully automated system for moving goods from one place to
another. They also use heavy machinery and lifting for loading goods on trucks.
● Product Mix:
As all know that Pakistan Beverage Limited own lots of beverages like Pepsi, Sting,
Miranda, 7up, Slice and Aquafina. They stored their inventories under a same roof but
they distribute different beverages in their particular section. By separating those product
it’s becoming quite easy to pick specific beverage from them particular section.

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Future Expansion:
Many organization neglected future expansion when they initially established the warehouse but
well managed organization often established 5 to 10 years expansion plan and PBL is one o those
companies they considered these expansions and purchase 3 to 5 times the size of initial size
structure for future establishment.
SOFTWARE USED
A Pakistan beverage limited is one of the largest bottlers of Pepsi Cola International products in
Pakistan has entered into a technology. They are using SAP’s ERP software at Pakistan
Beverages limited.SAP is also integrated with 3rd party logistics to save time and for more
efficient decision making. So with the help of software Pakistan beverages is able to automate its
operational process.
PLANTS:
We have our plants in Karachi. Pakistan beverages limited have overall 5 plants. 3 plants in
Karachi out of the three 1 is located in the site area which is carbonated soft drink plant. We have
our slice bottling plant in site area as well. We have also our Aquafina plant.1 carbonated soft
drink plant in Hyderabad and 1 carbonated soft drink plant in Quetta.
SUPPLIERS
It is very compulsory to select the best supplier for the company the suppliers who have the good
quality of the product because quality is very important part. And also the reliability because if
the supplier is not reliable then it will cause difficulty for the company. Service is also the main
part because if supplier is not giving us the good services so we will definitely switch us to other
suppliers. So Pakistan beverages limited have total 40 to 50 suppliers in which each product have
2 suppliers because if 1 supplier is not available then the other one can fulfill our requirement. So
that is the way to save us from any type of trouble.
Customer Relationship Management

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Retailors are the customers of PBL so they manage their relationship by always being their to fill
their demand, as they have strategy of cost leadership so they have remote warehouse to fulfill
demand of their customers more easily.
PAKISTAN BEVERAGES LIMITED’S IN-HOUSE PRODUCTION:
Pakistan Beverages limited perform most of the production process in-house. They do not
outsource most of their productions.
They have their canning line only in Karachi, that’s why they transport cans through fleets and
trucks to the other cities.
INVENTORY CONTROL:
Inventory is one of the most expensive assets of many companies it represents as much as 50%
to 60% of the total invested capital. Pakistan beverages limited have own 4 to 5 warehouses
located in Karachi in which 1 is rented and 1 is within the company which is located with the
factory and 1 is little bit far which is located with our sales office. 2 warehouses are remote base
1 is located in Korangi and the other one is located in federal b area in which they store their
inventory. They store their inventory for 3 to 4 days maximum because it is basically a FMCG
product so being a FMCG product we do not have much inventory for the finished goods. We fill
our inventory on daily basis and also we dispatch it on daily basis. We hold inventory basically
to improve our customer service and to reduce ordering cost. We also hold inventory to avoid
delays because if our customers will not get their desired product it will cause bad impression on
them but if we have enough inventory we can easily dispatch our product and it will show our
efficiency and responsiveness towards our customers.
COMPETITORS OF PAKISTAN BEVERAGES LIMITED:
The direct competitors of Pakistan Beverages Limited are Coca-Cola and Nestle Pakistan.
Challenges
Availability PBL has convenience product so their availability is also a big challenge.

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Meeting Standards PBL also obliged to mantain standards as it work as a franchisee.
Loading as PBL production is more so loading all products from one plant is not easy so they
transfer products to near by warehouse for maximum loading .
Transportation PBL has 300 and above vehicles to manage those vehicles are used for
within city transportation futher for city to city transfer of good they go for third party logistics.
COMPETITIVE STRATEGY OF PBL:
Competitive strategy provides a business distinctive edge and makes it better than the
competitor. The competitive strategy of Pakistan Beverage Limited is explained in detail below.
I. Cost Leadership:
Pakistan Beverages Limited’s competitive strategy is to successfully reduce the cost as
much as possible. PBL has a competitive advantage of cost leadership. It performs all the
operations with low cost.
II. Availability:
As Pakistan Beverages Company has direct competitors, they have to make sure that their
products are easily available at every place and at every time so that the customer does
not switch to competitor’s products.
Their competitive strategy is to ensure the availability of their product at every 5 star
hotels, restaurants, local food chain, stalls, kiosks and everywhere.
RECOMMENDATION:
After analyzing Pakistan Beverages Limited's warehousing system in detail. We came
into conclusion that PBL must engage with other distributors rather then self distributkon,
because in this way they can have more product lines of PepsiCo.
PBL must also try to increase it's territory scale by increasing their product line this will
also increase their revenues.
Futher as PBL is managing it's warehousing operations very efficiently. There warehouse
strategies are very well focused on their organizational goals. They are good at managing
inventory and warehouse planning.

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But the only flaw we found in their warehousing is that they lack in managing the
security of their warehouse. They are taking few steps to ensure the warehouse security
but they do not have any proper strategy of warehouse security. Here are few
recommendations by us to PBL which can help them to ensure their warehouse security,
- They should hire trained employees and have supervision team who observe the
presence of products and their conditions time to time and they should have remote
monitoring to look after the warehouse.
- The height of racks carrying the inventory should not be too high so that the inventory
does not break easily on falling down.
- The entrance and exit doors of the warehouse should have guards who have powerful
physical access control system who inspect all the vehicles, inventory and people.
Conclusion
We believe that ruther then any other nation doing business in pakistan, pakistan must try to fill
those gaps in franchisee system biggest challenge are standards. BPL is doing excellent by
hunting the opportunity or serving international beverages with their own local baverages.
.