Supply Chain Management Essay

417 words - 2 pages

The supply chain management (SCM) is a set of management functions that are applied for the purpose of integrating the chain members (suppliers, manufacturers, distributors, retailers and end users). This in turn will have its effect on reducing system costs and increasing customer service quality level and produces effective use of the supplier base in order to facilitate supplier relationships and to develop strategic relationships with them. Therefore SCM is viewed as a strategic approach for integrating demand, operation, procurement and managing logistical processes.
Organizational Performance (OP) is defined as “An analysis of a company’s performance as compared to goals ...view middle of the document...

They produce, market, sell and distribute a variety of convenient and enjoyable foods and beverages serving clients in over 200 countries and territories around the world. PepsiCo is recognized for its leadership in this area by earning a place on the prestigious Dow Jones Sustainability World Index for the seventh consecutive year and on the North America Index for the eighth consecutive year. The business results and financial conditions of the corporate are monitored by many indicators including growth and volume, revenue, organic revenue, growth on operating profit, market share, safety, product and service quality, brand equity, employee diversity, productivity savings, net capital spending and free cash flow.
PepsiCo operates in different parts of the world including Asia, Middle East and Africa excluding South Africa (AMEA). Jordan PepsiCo lies within the AMEA region business. Due to the fact that the researcher could not find information on the Jordan PepsiCo website, the researcher choose to use proxy indicators from the AMEA region to reflect the business growth. AMEA makes, markets, sells and distributes a number of leading snack and beverage brands. AMEA’s net revenue during 2013 was $6.5 billion, which made about 10% of the overall global total net revenue. PepsiCo products compete on the basis of price, quality, product quality and variety distribution. The CocaCola Company is the primary beverage competitor of the corporate. Examples of other food and beverage competitors but not limited to Kellogg, Redbull and Kraft Foods. PepsiCo employs around 274000 worldwide. Its subsidiaries are party to numerous collective bargaining agreements.

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