Supply chain management (SCM) strategies of PepsiCo Essay

Supply chain management (SCM) strategies of PepsiCo - Essay Example The paper further evaluates the ways through which PepsiCo complies with few of the most challenging aspects of business in the modern day phenomenon, such as fluctuation customer buying behaviour, forecasting needs and complexities in its SCM approach. As observed with reference to the findings obtained from the study, the SCM strategies of the company have been quite efficient in driving its success within the global periphery. The company also deals in various products and maintains strong network of supply chain for each of its product line which further increases the complexity issues by a large extent in its SCM processes. Moreover, it has also been noticed that the company always seek to adapt new technologies and maintain good relationship with its suppliers in order to enhance its supply chain efficiency to satisfy the customers, its suppliers and also the interests of the business. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Critical Evaluation of PepsiCo’s overall Distribution Strategy and Discussion of the "Direct to Store" Delivery Model 5 Critically Discussing How PepsiCo Handles Relationships with Its Suppliers and Explaining How It Has Been Using These Relationships to Increase Its Efficiency In The Supply Chain 7 7 Assessing PepsiCo’s Efficiency to Deal with Fluctuations in Demand and Supply within Its Supply Chain 10 Conclusion 14 References 15 Introduction Supply chain is the backbone of the modern business organizations. Emphasizing on the conclusions derived from various studies, it shall not be pious to state that the success of companies or any business is dependent on various aspects wherein supply chain can be considered as one of the major attributes. A supply chain may be defined as the combination of one or more companies for flow of products, services and other aspects of business from a source to the customers. It has been analysed in this context that a basic supply chain would include of a company, a supplier and an instantaneous customer directly linked in the flow of goods, services as well as information of the business or companies. The importance of supply chain in context of the modern day business is quite significant as it aims to provide competitive advantages to the companies in the targeted market. Comprehensively, based on these aspects, the systematic and strategic management of a supply chain network is often termed as ‘supply chain management’ (SCM) (Chopra & et. al., 2010; Mentzer, 2001; Christopher, 1998). This paper would intend to analyse the overall distribution strategy of the PepsiCo Beverage Company. Furthermore, the paper would also evaluate how the company deals with its relationship engaging suppliers. Additionally, the paper would discuss about the ways in which PepsiCo attempts to manage different aspects of business such as demand fluctuation and demand forecasting through its supply chain. Critical Evaluation of PepsiCoâ⠂¬â„¢s overall Distribution Strategy and Discussion of the "Direct to Store" Delivery Model In the year 2010, PepsiCo Beverage Company, the second major global food & Beverage Company, received the supply chain innovation award for its innovative network of SCM. Based on the understanding of the case study, it has been analyzed that PepsiCo always seeks for streamline operation and facilitate more rapid as well as integrated product delivery procedure in order to maintain a strong supply chain, strengthen its supply chain as well as improve the overall revenue growth of the company. It is worth mentioning in this regard that the award the company had received