Supply Chain

PepsiCo is one of the world’s biggest service businesses. Its headquarters is located in New York. It services are spread all the over the world. Due to this, the company has well developed supply chain. The structure of its supply chain involves the following stages: the supplier, manufacturer, distributor, retailer and the consumer. The location of their warehousing facilities is strategically located in order to serve its entire branches world wide. The planning of its supply chain involves long term decisions made by the top level managers. Production process is dependent on the supply chain. Thus, it has to be managed through all its activities such as transportation, shipping as well as delivery (Webber, 110). The source of raw materials is also an integral factor in the supply chain.

Planning of supply chain is vital as it helps in establishment of parameters. This helps in the forecasting of its performance within a given period of time. Moreover, through the supply chain the company is able to identify the level of demand and supply of their products. This helps in implementation of the necessary changes.

In the case of PepsiCo, the execution of supply is by the customer order (Andreas, 160). Therefore, the company experiences seasonal demand. The cycle in terms of procurement, manufacturing, replenishment as well as customer are highly affected by different seasons. The process of ordering and processing of its products involves the following: the shipping manager always receives orders to be sold from the sales team and distributors. This is usually through telephone calls or through emails. Normally, sales are made based on distributor’s location. This is normally with the advancement in payment of the required orders. This is followed by the shipping process that is under the management of the shipping manager. Supply can be done on daily basis. However, this depends on the amount of demand that has been made within that particular day.