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Pepsico's Distribution & Pepsico's Distribution & Logistics Operations Logistics Operations
By (Group - 8) Sec C Arun K.P - 12129 Gaurav Jhunjhunwala- 12138 Md.Shahbaaz Roomy Akhtar- 12149 Roshan v shetty- 12158 Vinay Prakash- 12178 Sarthak Rohatgi- 12182
Introduction
• PepsiCo is the US based world’s leading beverage and snacks food companies.
• Headquartered in New York.• Largest share in US beverage markets with 28% with
revenue of $25.11bn and growth of 6.8% .
`
Contd…PepsiCo served diverse market with its six group
companies such as
1) Frito-lay North America
2) Frito-lay International
3) Pepsi-Cola North America
4) Pepsi Beverage International
5) Gatorade/ Tropicana North America
6) Quaker Foods North America
Contd…Contd…
• Success mainly due to logistics and distribution management operations.
• Technical Capabilities to support logistics.
• Power of one program by Roger Enrico.
• Integrating and streamlining operations of various companies.
Background• In 1898, Caleb Bradham invented Pepsi-Cola.• Started marketing in 1903 and developed system of
bottling franchise for the drinks.• Went bankrupt in 1923.• Charles, head of Loft candy company bought in
1931 and merged it with Loft candy to create Pepsi-Cola bottling company in 1941.
• Merged with Frito lays international in 1965 to create PepsiCo Inc.
Contd…Contd…• Diversification into restaurant business.
• 1980s Pepsi Co acquired its franchisees to build its bottling business.
• 1990s Overseas expansion of bottling operations.
• 1998 Formation of Pepsi Bottling Company (PBG).
VENDING & FOODSERVICE SYSTEMS (V& FS)
BROKER WAREHOUSE
DISTRIBUTION (BWD)
DIRECT STOREDELIVERY
(DSD)
MAJOR DISTRIBUTI
ON SYSTEMS
DISTRIBUTION OPERATIONS
Direct Store Delivery Direct Store Delivery (DSD)(DSD)
• DSD was the oldest method employed by the PepsiCo
• Employees take Direct orders and delivers the previous orders
• Orders are taken manually .
• Timely delivery and shelf arrangement
• Ensured maximum visibility for passers by.
Contd…Contd…• To launch new products in pretty quick time
• Market response can be determined more easily
• No labour costs -unloading the trucks , placing the products on shelves.
Broker Warehouse Broker Warehouse
Distribution(BWD)Distribution(BWD)• Less delicate & perishable products• “IMPULSIVE BUYING” products were not included• Employed third party distributors • Employees at the stores handled the products and placed
them on the selves.• For the products which are less delicate and
perishable.eg cold drinks and juice. ADVANTAGES:-• No additional employees• Economical