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  • Subject Name : Management

Supply Chain Management

Contents

Introduction.

Operations and supply chain management

Competitive strategy.

Procurement of raw material

Manufacturing operations.

Relationship with suppliers.

Distribution strategies.

Innovation and knowledge management

Conclusion.

Reference.

Introduction to PepsiCo Operation Management

PepsiCo is an international food, snacks, and Beverage Company. The headquarters of the company is situated in New York. The company mainly focuses on marketing, manufacturing, and distribution of different products. It is considered a pioneer in foods, snacks, and beverages. The main products of the company are soft drinks such as Pepsi and many more. The main aim of this analysis is to assess the operations management of the company. It will further assess the role of knowledge and innovation management in the organization. Finally, the conclusion will summarise the overall analysis.

Operations and Supply Chain Management

Operation management focuses on planning, development, and controlling all the activities that can transform the company’s inputs into final products.

Competitive Strategy

The company operates in a competitive environment and it attains competitive advantage by offering modified products and services that meet the preferences of customers in the most effective manner. The supply chain management of PepsiCo is based on the thought of partnership and integration (Meredith & Shafer, 2019). Furthermore, the company took different initiatives to make the supply chain more collaborative and integrated. All these efforts are highly effective in providing a competitive advantage.

Procurement of Raw Material

The raw material used in manufacturing included beverages and food products. Furthermore, raw material also comprises plastic beverage bottles and packaging material (Hofstetter, Zhang & Herrmann, 2018).

Manufacturing Operations

The company uses numerous effective distribution approaches to deliver the products in the marketplace. It delivered fragile and delicate products which were less likely to be impulse purchase from its manufacturing plant and warehouses (Lambert & Enz, 2017). In addition, the company uses third party food services and trade distributors to distribute different products.

Relationship with Suppliers

The company also enhance its supply chain by making a collaborative relationship with the suppliers. The continuous efforts of the company help to make the supply chain and operations more effective and efficient.

Distribution Strategies

The company uses direct and indirect distribution channels. Furthermore, the direct distribution channel includes wholesalers, restaurants, export parties. For distributing the products company uses distribution channels (Barrett, Haug & Gaskins, 2020). The company has also developed a system of product differentiation in order to distinguish itself from other competitors.

Innovation and Knowledge Management

Innovation in the supply chain includes three key drivers such as technology advantage, environmental sustainability, and digitizing the value chain. Environmental sustainability is an imperative part of PepsiCo's performance which helps to improve supply management. Furthermore, the major focus of the company is to reduce its impact on the environment. Technology is another crucial factor that provides a competitive advantage. The company uses automation technology in order to enhance the efficiency of the plant and to meet customer needs in the most effective manner.

Knowledge management has driven many organizations to attain a competitive benefit. The knowledge management PepsiCo has a deep association with collaboration (Sehrawat, 2019). It contributes to the nature of not just a structure but an enormous system where the people can communicate with the business network based in a dissimilar country. This nature will assist the managers to evaluate how much information is required to increase customer satisfaction. Knowledge management plays a vital role in strategy implantation as it defines the areas which need further enhancement. It also acts as a strong critical point where the business seeks assessments or collects information to further enlarge the operations.

The first area company seeks to innovate is delivering; they want to cater to the needs of target customers by finding new ways of delivering beverages and food products. The delivery industry has been changing a lot in the last few years. Furthermore, the company understood that customers are demanding fast and effective services (Dutta, Dutta, & Sengupta, 2016). To cater to this challenge, the company wants to identify new ways to deliver the product directly to the customers.

PepsiCo has also increased the marketing and advertising budget in order to increase market share. One of the major things is that the company is focusing on meeting the changing demands of customers. Now the company has reshaped its portfolio to capitalize on consumers increasing interest in health and wellness. PepsiCo has invested in research and development to create low-calorie products in order to meet the customer’s demands.

Conclusion on PepsiCo Operation Management

It has been identified from the overall analysis that operation management is a crucial function for a company. Furthermore, it also helps in the development of an effective strategy. It has also been identified that the company must focus on enhancing its operations through continuous innovation. The consistency and product innovation are highly essential and also play an important role in providing a competitive advantage to PepsiCo. With the help of effective supply chain and innovation, the company has been able to add to market share and customer loyalty.

Reference for PepsiCo Operation Management

Barrett, P. T., Haug, J. C., & Gaskins, J. N. (2020). An Interview on Leadership with Al Carey, CEO, PepsiCo Beverages. Southern Business Review38(1), 31-38.

Barrett, P. T., Haug, J. C., & Gaskins, J. N. (2020). An Interview on Leadership with Al Carey, CEO, PepsiCo Beverages. Southern Business Review38(1), 31-38.

Dutta, A., Dutta, A., & Sengupta, S. (2016). A Case Study of Pepsico Contract Farming For Potatoes. IOSR Journal of Business and Management, 75-85.

Hofstetter, R., Zhang, J. Z., & Herrmann, A. (2018). Successive open innovation contests and incentives: Winner‐take‐all or multiple prizes?. Journal of Product Innovation Management35(4), 492-517.

Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management62, 1-16.

Meredith, J. R., & Shafer, S. M. (2019). Operations and supply chain management for MBAs. John Wiley & Sons.

Sehrawat, S. (2019). Pepsico’s Sustainable Strategies. Journal of Management6(2).

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