PepsiCo's Distribution and Logistics Operations
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"PepsiCo has continually been at the forefront of standards adoption, promoting industry efficiency and adding value throughout our supply chain."1
- Al Carey, Chief Operating Officer, PepsiCo Beverages and Foods, North America.
Analysts felt that one of the main reasons for the company's massive growth over the decades and the leadership status it has acquired in almost all its business segments was PepsiCo's efficient distribution and logistics management operations. Depending on the product involved, PepsiCo chose between the various standard distribution methods employed, such as the Direct Store Delivery (DSD) system, the broker warehouse system, the vending and food service system and the pre-sell method.
This was undoubtedly a difficult task, but the then CEO Roger Enrico (Enrico) announced the launch of the 'Power of One' program through which, he said, the company would achieve this streamlining of operations, in 1998. PepsiCo would generate savings worth millions of dollars if the program was implemented well. However, the program had not got off the ground even by early 2004.
1] As quoted in the article, "PepsiCo Joins UCC net for Global Services," posted on knowledgebase.uccnet.org, dated December 12, 2003.
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