Prior to developing a supply chain map, it is important to identify and understand the nature of the plan, the importance of mapping, and the role the map plays in the strategy. The supply chain represents all companies that are in contact with a particular product. The supply chain is a network, which outlines the steps it takes to get a good or service from production to the final customer. The map links strategic processes of a firm to facilitate the evaluation of supply chain structure. In short, the supply chain categorizes the responsibilities of the manufacturer, distributor, dealer so duties avoid overlapping or duplication.
The goal of a supply chain is to become more effective and efficient, which gives a competitive advantage over other competing supply chains. The following will map the supply chain of Pepsi-Cola beverage. The map will illustrate the process of manufacturing the product and continue until the retailer passes the product to the consumer. In the preceding supply chain map, the manufacture and distributor are both part of PepsiCo. The retailer makes up all grocery stores, convenience stores, and mass merchandise stores.
Pepsi-Cola beverage is a favorable soft drink beverage that drinkers have become accustomed to its unique flavor. In order to ensure product consistency, around the world, manufacturing must follow strict guidelines. These guidelines include the quality of raw materials, ensure packaging meets company standards, finished product quality meets specifications, and ingredients are similar. To provide consistency in product quality is crucial to outline the supply chain tasks for the manufacturer. The functions of the manufacturer are specific to product quality, packaging, and shipping a high quality finished product to the operations facilities. Following the supply chain map in manufacturing outlines the duties of manufacturing that ensure the product formula is identical regardless of which manufacturer produces the product. sources raw materials, such as sugar and aluminum for cans
designs the packaging and graphics
determines the proper ingredients and quantities
regularly calibrates and calculates the formula throughout production produces
the product and ensures quality
introduces new products based on customer demands
ships product to sales operations
The next step in the supply chain map is the distributor. Once the distributor receives the product from the manufacturer, they allocate the quantities based on retailer needs. The distributor uses their relationship to secure product displays, write product orders, extend short-term credit to the retailer, and delivers product to the retailer. Pepsi-Cola distributors also supply manpower to ensure the product makes it to the shelf is maintained daily. The product chain tasks break down the required steps a distributor is responsible for. These tasks provide efficiencies and are assigned to make sure there is zero overlapping between the manufacturer and distributor. receives shipment from the manufacturer
establishes relationships with retailers
extends credit to retailers
breaks down orders for direct store delivery (DSD)
sale, deliver, and service product at retail location.
The retailer allocates a specified amount of space for Pepsi Cola. The distributor is responsible for ordering, filling, and maintaining this space. The retailer determines products placed in advertisements, based on the distributor’s product allowances given to the retailer. The retailer also employs customer service representatives to support customer needs and provide them with the needed services to make the exchange of products for cash value. This completed process finalizes the transfer of the product to the consumer. provides shelf and display space for Pepsi Products
advertises to drive consumers to the store
determines product selection based on distributor’s allowances employs customer service representatives
to assist the consumer processes the transaction
transfers possession to the consumer
In the supply chain of Pepsi-Cola beverage each company has a particular role. These functions are essential to the success of providing the product to the final consumer. A successful supply chain map designates specific tasks that each company is responsible. These tasks are specific and are meant to ensure the product makes it to their business in the most efficient and effective manner. Depending on how detailed and well thought out a supply chain map is, determines whether the plan can improve the efficiency of getting the product through each company channel. Many companies strive for an optimized supply chain because it can lead to lower costs for the enterprise. Other purposes of an optimized supply chain are to eliminate issues when product flows between businesses and to create a standard throughout the global market.
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