Supply Chain Analysis: Frito-Lay

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Introduction: Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013). Coolcargo packaging fresh asparagus in cool-controlled temperature was comparing with other logistics-solutions more expensive but had had the tradeoff advantage of more product packaging instead of ice (Coolcargo, 2013; UOL, 2013). Transport cost represents 70% of total product cost. Frito-Lay transport cost of fresh products to warehouses represents 5% of total product cost but energy ( electricity and gas) represent 80% of total product cost (PepsiCo, 2013) making Frito-Lay looking for solutions that reduces energy consumption. Both supply-chains should deal with (Zanjirani, Rezapour & Kardar, 2011): 1. Minimize cost of procurement materials, 2. Achieve the lowest delivery cost, 3. Deliver best class products and services, 4. Operates with efficient work-capital cost, 5. Developed demand forecast. Frito-Lay supply-chain deals with (Frito-Lay, 2013; Zanjirani, Rezapour & Kardar, 2011): 1. Manufacture high volume, 2. Work as integrated organization, 3. Brand-name position. Frito-Lay controlled 40% of the USA-market assuring high volume production by increasing internal coordination with PepsiCo developing the Power of One strategy consisting in mixing snacks with beverages and sauces produced by Peps... ... middle of paper ... ...o Lay [Online] Available from: http://www.foodbusinessnews.net.ezproxy.liv.ac.uk/articles/news_home/Business_News/2013/02/Frito_Lay_making_good_progress.aspx?ID=%7BDF990F34-A29E-45F6-A868-ED51F0F530DC%7D&cck=1 (Accessed: 15 December 2013). PepsiCo. (2011) Pepsico News [Online]. Available from: http://www.pepsico.com/PressRelease/PepsiCo-Announces-Formation-of-Power-of-One---Americas-Council-and-Creation-of-G09202011.html (Accessed: 24 December 2013). PepsiCo. (2013) News and pdf documents [Online]. Available from: http://www.pepsico.com/ (Accessed: 24 December 2013). UOL (2013) Coolcargo Supply Chain [Online]. Available from: https://my.ohecampus.com/lens/login;jsessionid=781E4904D1D3599708C72CFD40C54478 (Accessed: 15 December 2013). Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.

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