Pepsico Case Analysis

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With that being said, knowing the routes products take in getting from point A to point B requires a planning process with the ability to create practical shipment arrangements by consolidating orders to optimal shipping volumes by also taking into consideration the variety of trucks, the number of stops in routes, and the potential for outside restrictions according to the Supply Chain Digest (Web, 2014). With most companies that process shipping trucks, drivers spend valuable time waiting for the trucks to be loaded and unloaded with product shipment, causing a loss in revenue gained through quicker delivery times customer. With proper planning and implementation of a network wide system throughout PepsiCo’s supply chain, the delivery function more specifically that shows outbound and inbound capacity, appointment schedules, and available times for delivery receipts, drivers can be aware of time slots that they can get in and out with to better utilize time and capital. With the determination between the differences of inbound and outbound shipments, PepsiCo will be able to further improve carrier efficiency and reduce their overall transportation costs. With the implementation of such a system that can handle appointment scheduling, payment tendering, settlement, and rate change management which PepsiCo had desired, PepsiCo will be able to have a sole server for accessing freight audits and payments that previously took up to a month before the centralized accounts payable. Before such a system could be fully implemented, each audit cost PepsiCo $25-$28 per invoice to pay each freight bill (Web, 2014). With more than 90,000 invoices per year, the costs quickly add up. Completely eliminating these costs with the system Pe... ... middle of paper ... ...o purchase more greener vehicles to replace those that are not. Overall PepsiCo’s delivery segment within the SCOR model is already making strides towards more efficient and cost effective pathways, and the continuation of such efforts will allow PepsiCo to continue being a top competitor in its industry. With the implementation of greener trucks and the pending patent to move towards paper bottle packaging, PepsiCo shows the initiative that it values the world it operates in as well as the consumers that live in it. PepsiCo should focus on implementing a system throughout its network that allows for the delivery segment to view all inbound/outbound capacity, appointment schedules, and available times for delivery receipts to be made so that communication can flow effectively, carrier efficiency can further improve, and wasted time can be effectively eliminated.

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