Pepsi has been in business since 1893 and produces beverages and snacks. It manages supply chain operations through various initiatives including using a logistics software called I2 to optimize transportation routing and costs, sharing data with suppliers to coordinate production and delivery, and implementing new sensor technologies in warehouses to reduce downtimes and improve efficiency. By taking a collaborative approach and leveraging technology, Pepsi aims to offer high quality products at low prices while increasing value for shareholders.

1. How did pepsi overtake problems using SCM?

2.  Founded in 1893 – 126 YO
 American - multinational
 Produces beverages and soft drinks
 Produces foods and snacks

3.  Pepsi cola
 Aquafina
 Cheetos
 Lay’s
 Doritos
 And more than 30 brands and products

4.  Increase value of shareholders’ investment.
 Offering best quality, so it can make them rich.
 Cheapest prices, with best qualities.

5.  Indra Krishnamurthy Nooyi
 Healthier snacks
 Net-zero impact on environment
 1.3 billion $ spent on healthier snacks

6.  Diversity in products -> Diversity in suppliers
 Diversity in products -> Diversity in customers
 Commitment to buy from suppliers
 Partnership with minority-owned and women based owned suppliers

7.  Supplier with cheapest price -> quality
 Transportation cost + good cost
 They couldn’t make the production process better

8.  Manage their transportations
 Manage the logistic
 Manage 2 warehouses

9.  Penske made I2 for them
 Chooses the best routes
 Calculates cost of fuel
 Marks cars with high fuel consumption
 Alerts when there is delay
 All transportation companies put their offer in I2 and Pepsi chooses from them
 Using I2, delivery time is 99% accurate

10.  Observing all process from supplier to consumer
 Sharing data with all people, from managers to suppliers
 Alerts when there is upcoming events (like typhoon)
 Suppliers submit their products every week
 Has a plan for more than 100 events
 Predicts the need for market
 Asked HP to manage their IT system in 2006

11.  They had used more than 120 different kind of sensors
 The had a warehouse only for sensors
 They had sometimes 30 minutes of shutdown

12.  A contract with Allen Bradly company
 Reduced the sensors to 46 (66%)
 A contract for maintenance
 A contract to use their specialists 24/7
 A contract to replace all the sensors freely while they are in the warranty time
 Reduced downtimes to 5 mins

13.  Pull
 Push
 Make what we sale, not sale what we make

14. Pouya Heydari