Essay on Supply Chain Analysis: Frito-Lay

1544 Words 7 Pages

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,
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Not outsourced activities Flavoring activities outsourced
Logistics services ( intermediation) Vertical Supply Chain from farms to Store
(Source: America, 2013; Frito-Lay, 2013; Newswire, 2013; PepsiCo, 2013; UOL, 2013).
Frito-Lay Agile Supply-chain partnering with farmers for developing cooperation and flexibility (Lun, Lai & Chen, 2010;Frito-Lay, 2013) increases sustainable crops production in compliance with law-regulations. Introducing vertical-supply-chain for agricultural activities, Frito-Lay ensures water management procedures and soil protection for deforestation. The long-term agreements ensure agricultural suppliers and supporting welfare in the agriculture communities (PepsiCo, 2013) generating a win-win situation.
Problems detected in Frito-Lay supply-chain were:
1. Inventory Replenishment Problems because wrong forecasting

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