CARGOCONNECT JULY2024 - Flipbook - Page 52
NAVEEN TIWARI
ASSOCIATE DIRECTOR– SUPPLY
CHAIN PLANNING AND LOGISTICS
PEPSICO
Sustainability and
Innovation Driving
PepsiCo’s Supply Chain
P
epsiCo: A Global Food and Beverage Leader
PepsiCo Inc. is an American multinational food, snack,
and beverage corporation headquartered in Purchase,
New York. Its business spans all aspects of the food and
beverage market, overseeing manufacturing, distribution, and marketing. Formed in 1965 by the merger of
Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has grown from
its original Pepsi Cola product to a diverse range of brands. Major
acquisitions include Tropicana Products in 1998, Quaker Oats (adding
Gatorade) in 2001, and Pioneer Foods in 2020 for US$1.7 billion.
PepsiCo is a global leader in the food and beverage industry, with a portfolio that includes household brands like Pepsi,
Mountain Dew, Gatorade, Lay’s, and Doritos. Operating in over
200 countries and territories, PepsiCo’s diverse product mix and
international presence ensure a strong competitive stance. Its
broad portfolio caters to varied consumer needs, from lifestyle
drinks to favorite snacks, and bene昀椀ts from cross-functional
promotional opportunities. The extensive global distribution
network leverages economies of scale and best practices across
regions. In 2023, PepsiCo’s supply chain was consistently ranked
among the top 10 in the FMCG sector.
Resilient Supply Chains in the F&B Sector
Geographically, the growing markets of Asia and the Middle East
have faced the challenges of unstable political environments,
war-torn economies, and devaluing currencies, putting today’s
brands under immense pressure to remain pro昀椀table. We live in
a Volatile, Uncertain, Complex, and Ambiguous (VUCA) world,
where a brand’s success is often judged by its pro昀椀tability. The
cost and availability of crucial ingredients have become signi昀椀-
52 | CARGOCONNECT JULY 2024
PepsiCo continues to navigate a dynamic landscape marked by digital
transformation, sustainability imperatives, and volatile global markets.
Founded through the merger of Pepsi-Cola Company and Frito-Lay in 1965,
PepsiCo has expanded its portfolio to include iconic brands like Pepsi,
Gatorade, and Doritos, operating in over 200 countries. Embracing advanced
technologies like AI, IoT, and blockchain, PepsiCo optimizes its supply chain for
agility and efficiency. Naveen Tiwari, Associate Director– Supply Chain
Planning and Logistics at the American multinational food corporation, in
discussion with SMITI SURI shares how they leverage innovation and strategic
partnerships to uphold industry leadership, manage global challenges, and
deliver superior products through robust supply chain strategies.
cant challenges, complicating the delivery of quality products
consumers demand.
The F&B sector is evolving, driven by changing consumer preferences, technological advancements, and environmental concerns.
Trends include the rise of convenience foods, a focus on health and
wellness, demand for sustainable and ethically sourced products,
and the increasing in昀氀uence of technology. Today’s supply chains
must demonstrate cost leadership through sustainable processes
and innovations like upcycling food waste, which reduces costs
and minimises environmental impact. Sustainable packaging
remains a priority, and achieving net-zero status, especially given
the industry’s signi昀椀cant water usage, is now critical.
Supply chains must become antifragile, e昀昀ectively managing VUCA
with resilience. Embracing uncertainties, designing robust supply
chains, and executing 昀氀awlessly are essential. Educating all supply
chain stakeholders on managing uncertainty is crucial for success.
Driving Agility through Supply Chain Digitisation and
Mitigating Risks
In today’s VUCA world, e昀昀ective demand forecasting is crucial for
