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LOG503 MOD 5 SLP - Essay Example

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LOG503 MOD 5 SLP Introduction Frito- Lay is the largest manufacturer of salty snacks in the world assimilating around 35% and 60% of world and the United States market respectively. It is essentially a division of PepsiCo Inc which generates around half of the revenues and two-thirds of profits of the organization…
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Download file to see previous pages Logistics Structure of Frito Lay The logistics process of Frito- Lay is carried out in six geographical zones and is quite complex in nature. The channel of distribution is quite an essential element for the organization. It has been observed that in the logistic department Frito-Lay engages women and minorities which facilitates in development and growth of the organization. A Supplier Diversity Program was established in 1983 in order to supply better quality of products and services through diverse suppliers at competitive prices. The program has permitted the organization to maintain proactivity through the development of communities in economic sphere. This comprehensive strategy enables the organization to integrate the operations with supply chain department for assisting suppliers and distributors to handle and deliver products within a stipulated time period. With the incorporation of women and minority groups in business activities, effective productivity can be ensured leading to greater sales and profitability. It enables the organization to gain competitive advantage in order to propagate effective results in business. Minority groups as well as women assist in building grater supplier base for smooth functioning of product deliverance in wider markets nationally as well as globally. Effective supply chain stimulates organizational effectiveness and enhances sales through efficient logistics systems. The Supplier Diversity Program is enabling to maintain effective supply chain activities and it also helps Woman Owned Business Enterprises (MWBEs) in various divisions of PepsiCo (Frito-Lay North America, 2013). Furthermore, in terms of the other crucial components in the logistics structure of Frito-Lays, it can be recognized that it follows an incorporated outbound supply chain based activities. It aims to optimize the transportation as well as inventory decisions. Moreover, there are a number of distribution centers of the company on a global basis which provide required amount of products to the retail outlets on time. Through the process of supply chain optimization, key performance indicators in the logistics process of the company are looked after by a number of teams. It facilitates to reduce the amount of travel required by vehicles to reach out to their desired destinations. Superior technologies are used within the process of implementing best practices in the logistics related activities. Strategic sequencing technique is used streamline the sales which facilitates to reduce travel distance (Transport Canada, 2010). Improving the Logistics Process of Frito Lay It has been recognized that Frito- Lay’s logistics activities consist of outbound activities in the supply chain management that stimulate the transportation and inventory decisions. The logistic processes also include the delivery of products through trucks in an efficient manner. The organization possesses efficient information technology process through which the shipment of products, availability of raw materials and the level of inventory are effectively handled at any point of time. With relation to the learning obtained during the course, it can be recognized that despite having efficient informa ...Download file to see next pagesRead More
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