quản trị mua hàng
quản trị mua hàng
quản trị mua hàng
INTERNATIONAL UNIVERSITY
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1 .Intro
In the current era of economic integration, the birth of multinational companies has
created many opportunities for developing countries, including Pepsi. Pepsi has long
gradually asserted its position and become a familiar drink to everyone. However, no
company has problems in purchasing management, and Pepsi is no exception.
We had time to research the media to synthesize and plan the company's solutions for
future development.
The layout of the article includes 3 parts:
+Part I: Overview of PepsiCo Corporation and PEPSI products.
+Part II: PepsiCo's purchasing management process.
+Part III: Conclusion.
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Although Pepsi products were born nearly 13 years after Coca-Cola, they still have a
great advantage and become the main product line bringing huge profits to the
company of about 20 USD annually (accounting for about 1/5 of the total revenue of
the parent company). To meet the needs of consumers PepsiCo has diversified its
packaging and ingredients to suit customers such as cans, plastic bottles, glass
bottles of different volumes, and zero-calorie, low-calorie varieties. sugar, or
original flavor..
2 PepsiCo's purchasing
management process.
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2.1.2 Supplier Scoring and Assessment
When comparing suppliers, Pepsi does not only focus on the quoted price but also
on other dimensions that may affect the total cost of the supplier. The following
factors other than the quoted price are being considered: replenishment lead time,
supply flexibility, supply quality, pricing terms, exchange rates, duties, and supplier
viability. For Pepsi, the supplier scoring and assessment is based on the feature that
the supplier performance, in terms of replenishment lead time and on-time
performance, distinguishes them from their
competitors. Soon after the tender notice for the procurement of raw materials is
advertised, the suppliers are asked to send samples of the products. For example, for
the manufacture of Pepsi, concentrate and sugar are demanded of high quality which
is the forte of the company. These samples are tested in total-quality laboratories. If
the samples match the standard set then the sales department selects that particular
supplier. Pepsi is an ISO-9001-certified company and cannot sell low-quality
products, therefore it has strict standards set for the purchase of raw materials from
suppliers
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4. Being a global business, PepsiCo works with a wide variety of products, each having
unique needs. Certain products require cold chain logistics, whereas others depend on
ingredients that are acquired from different parts of the world.
5. The business arranges for a large number of manufacturers, shippers, merchants,
warehouse managers, and suppliers. It also takes into consideration possible
disruptions such variations in demand, seasonal requirements for sourcing, and
weather changes1.
6. Data-Driven Methodology:
○ PepsiCo makes investments in cutting-edge technologies and digital tools to
build a more effective supply chain.
○ In order to obtain insights into consumer behavior and purchase trends, the
organization focuses on data integration. PepsiCo can enhance its supply chain
by gaining purchase insight about the individuals and households that its
goods.
○ Purchasing and Sourcing:
○ The two main pillars of PepsiCo's supply chain strategy are procurement and
sourcing.
○ The business builds trusting connections with suppliers and chooses
ingredients with care. Taste consistency and adherence to strict quality
standards are guaranteed by this dedication to quality.
○ Diversity of Suppliers: PepsiCo aggressively encourages diversity of
suppliers.
○ They plan to double their spending efforts with Black-owned suppliers by
2025, focusing on growth across services, agriculture, sustainable packaging,
and operations .
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○Their sustainable sourcing program includes formal risk assessments, third-
party audits, corrective actions, and capability building.
2. Technology and Innovation:
○ PepsiCo collaborates with emerging technology start-ups through programs
like PepsiCo Labs.
○ They scout for breakthrough tech solutions related to procurement needs, such
as spend analytics, market intelligence, supplier relationship management, and
more.
3. Regenerative Farming:
○ PepsiCo aims to spread regenerative practices across 7 million acres by 2030.
○ They sustainably source crops and work closely with farmers to embed
integrity, fairness, and stewardship throughout their agricultural supply chain.
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2.4 Analyze purchasing ABC
ABC (Activity Cost Analysis) is an effective cost management method that helps businesses identify
and allocate costs to specific activities, products and services. For PepsiCo, ABC analysis can be
applied as follows:
1. Raw materials:
- Group A: Main ingredients such as sugar, water, flavoring, etc. These are big costs and greatly affect
the product price.
- Group B: Secondary materials such as packaging, labels, etc. These are costs that have less impact
on price.
- Group C: Other materials such as cleaning chemicals, protective equipment, etc. These are small
costs and have little impact on price.
2. Finished product:
- Group A: Key products such as Pepsi, Mountain Dew, Gatorade, etc. These are the products that
bring main revenue and profits to PepsiCo.
- Group B: By-products such as Lay's snacks, Doritos, Cheetos, etc. These are products with good
revenue and profits but are not the mainstay.
- Group C: Less important products such as local beverage lines, experimental products, etc. These
are products with low revenue and profits.
By analyzing ABC, PepsiCo can focus resources on key activities and products (group A), while well
managing less important activities and products (group B and C). This helps PepsiCo improve
operating efficiency and optimize profits.
Applying the EOQ model to calculate the optimal order quantity of Pepsico Company:
For the management of raw materials inventory. Currently, the company applies the EOQ
ordering model. However, because the characteristics of each material are different as well as
the packaging method of the manufacturer, supplier, order cycle, waiting time from ordering
to delivery, etc., the quantity This optimal ordering cannot be fully compliant with the EOQ
model but also from the experience of the staff in the production planning department. In
some cases, the order volume is also dependent on the requirements of the export manager
when there are situations where the shortage of raw materials occurs during the production
process as well as on the programs of company promotions. For many years, the demand for
Pepsico's raw has been rapidly growing. To meet this demand, the company has actively
invested in partnerships with raw material suppliers, sustainable agricultural production and
effective supply chain management. In addition, research and development of more efficient
production methods is also an important solution to meet the increasing demand for raw
materials.
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on the one hand and has steadily grown its purchase and development of soft drinks from
manufacturing on the other. As a result, the team decided to investigate the inventory of soft
drinks.
EOQ formula:
We call:
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$50,000.
So we have: D = 300,000 units; S = $50,000; H = $80
Thus, EOQ = 19,365 units
This depicts that at the order quantity of 19,365 units per order, the company would
have minimum costs while keeping the required stock in hand.
2.5 E-Procurement
E-Procurement Procedure for Pepsi Soft Drink Items
1. Demand projections and requirements analysis:
-Forecast demand for Pepsi Soft drink products using market trends, consumer insights, and
historical sales data.
-Perform routine reviews to find out about impending promotions, depletion rates, and
inventory levels.
2. Find and pre-qualify vendors:
- Use supplier databases, industry recommendations, and market research to find possible
suppliers for Pepsi Soft drink items.
-Pre-qualification of suppliers is done on the basis of factors like competitive pricing,
delivery capabilities, sustainable practices, and adherence to legal requirements.
3. Negotiation and involvement of suppliers:
-Start negotiating advantageous conditions, such as price, terms of payment, delivery
schedules, and service level agreements (SLAs), with eligible suppliers.
-Insist on the significance of product quality, uniformity, and adherence to PepsiCo
guidelines and specifications.
4. Establish an electronic bidding system: -Update or implement the e-procurement system to
make the Pepsi soft drink products purchase process easier.
-Set up the system to handle vendor management, orders, approvals, reporting, and
purchasing requirements.
5. Submit buy request: - Using the electronic procurement system, the authorized person
sends a purchase request including the amount, packing, delivery address, and any specific
needs for Pepsi soft drink items.
6. Oversee the procedure of approval:
-In the e-procurement system, create a hierarchy for the approval process to assign purchase
requisitions to review and approval.
-Assign approvers in accordance with procurement policy, financial authority, and
organizational responsibility.
7. Create and submit purchase orders: -In the e-tendering system, approved purchase
requisitions are automatically converted into purchase orders.
-Orders, along with pertinent information including product specifications, quantities, prices,
delivery instructions, and contract terms, are sent electronically to a list of approved
suppliers. select.
8. Order fulfillment and delivery:
- After confirming receipt of the order, the supplier begins supplying raw materials for Pepsi
production.
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-Monitor order fulfillment status using e-procurement system and liaise with suppliers to
ensure that delivery dates and quality requirements are met.
Inspect incoming shipments of Pepsi production materials to ensure compliance with quality,
quantity and specifications.
9. Processing bills and payments: -Check supplier invoices against matching purchase orders
after receiving Pepsi soft drink items, and obtain reports via the e-procurement system.
-Approve payment invoices in accordance with financial regulations and agreed terms of
payment.
In order to preserve supplier relationships, process payments using the business's accounts
payable system, making sure they are accurate and made on time.
10. Performance evaluations and vendor input: -Keep an eye on supplier performance
indicators like SLA compliance, responsiveness, quality of product, and on-time delivery.
-Give suppliers constructive criticism based on performance reports, emphasizing areas for
development or incentives.
-Collaborate with suppliers to promptly and proactively address any problems or challenges.
11. Continuous improvement and optimization:
-Continually assess the e-procurement procedure to identify areas for improvement in terms
of cost, efficiency, and streamlining.
-Ask end users, suppliers, and internal stakeholders for their opinions in order to pinpoint
issues and possible fixes.
- Optimize the procurement of raw materials for the manufacturing of Pepsi by putting
precision measures into place, streamlining procedures, or updating technology as needed.
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2.Variations by Region: PepsiCo adjusts its product lineup to suit local preferences
and tastes. This entails creating products, tastes, and formulas especially for regional
markets.
3.Point of Purchase (POP) Displays: Pepsi uses visibly striking POP displays in retail
establishments to draw customers in and encourage impulsive sales. To get people to
purchase Pepsi products, these displays may include new products, limited-edition
packaging, or exclusive deals.
4.Promotional Pricing: To increase sales and entice consumers to buy its products,
Pepsi regularly offers promotional pricing in the form of discounts, packaged offers,
and exclusive deals. These promos are frequently connected to occasions, special
occasions, or the introduction of new products.
5. Pricing Discrimination: To appeal to various customer categories and reach a wider
market, Pepsi uses pricing discrimination based on variables like geography,
distribution channel, and packaging size.
6. Pepsi employs psychological pricing, setting prices just below whole numbers to
entice customers to think they're getting a better deal and change their purchasing
habits.
● Customer Preferences
+Pepsi's marketing strategy involves leveraging celebrity endorsements, creative campaigns,
potent advertising, and a strong brand logo to connect with consumers and maintain a
competitive edge.
+To ensure its longevity and relevance in the market, Pepsi focuses on leveraging its brand
power, investing in continuous innovation, and staying tuned to consumer needs
+From teenagers to adults, the company's target market is diversified. To effectively target
this population through a variety of marketing channels, including digital campaigns, TV ads,
and content marketing, the company has identified important regions, demographics, and
preferences.
2. Planning Inventory
● Based on the anticipated demand, calculate the amount of Pepsi carbonated
soft drinks that are required.
● Determine the necessary quantity of each Pepsi product variation, including
special seasonal editions like Pepsi Salted Caramel, to have on hand.
3. Coordination of Suppliers
● Build ties with regional distributors or PepsiCo to ensure a steady supply
chain.
● Reach a deal on bulk purchases to get goods at a discount.
4. Purchasing Raw Materials
● Obtain raw materials according to the needs of the production, such as sugar,
citric acid, essence, activated carbon, and others.
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● To avoid shortages, keep a buffer reserve of necessary raw materials.
5. Scheduling of Production
● To achieve the desired inventory levels for every Pepsi product variation, set
up a production schedule.
● In order to reach production targets, make sure that the machinery is
maintained and run efficiently.
6. Inspection of Quality
● Put quality control procedures in place to keep Pepsi goods tasting and looking
consistent.
● Verify that completed goods and raw materials adhere to requirements on a regular
basis.
- Products: PepsiCo has successfully positioned itself in the hearts of customers over
the past 100 years. Building a prestigious and highly famous brand comes with good
quality, beautiful packaging, and product diversity consistent with the goals the
company is aiming for.
- Price: Price is stable and receives loyalty and support from customers. Aim for the
low price segment and discount regime to limit competition between companies and
decline in output for new products.
- Distribution: Always pay attention to intermediary distributors who cooperate with
fast-food restaurant chains so that products can reach customers quickly. In Vietnam,
Pepsi's branch cooperated with the Kinh Do Joint Stock Company to expand its sales
network to boost revenue.
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- Marketing: The marketing department contributes greatly to successfully attracting
people to identify the product. At the same time, Pepsi spent a large amount of money
to invite famous representatives to promote and increase brand recognition.
3.1.2 Limitations
- Products: Although Pepsi has products designed with diverse designs and materials,
they are still less attractive than the current market - a market that is easily attracted
to eye-catching things.
- Price: Currently, the market is quite competitive because there are beverage products
that still have price differences at a certain level, causing difficulty in pricing. If
PepsiCo prices its products against competitors, it will miss out on paying attention
to costs and market needs. Therefore, pricing needs to be timely and consistent with
market needs.
- Distribution: The direct distribution function to customers is still not working well,
investment in distribution still has many limitations and limitations.
- Marketing: Spend quite a lot of money on marketing. Choosing a product attendee
will bring many disadvantages if not carefully considered. Targeting product
promotion to young people but not keeping up with trends.
4 Conclusion
4.1 Prospects of product/service development of the company's purchasing
management:
4.1.1 Opportunities:
+ Pepsico has certain and large suppliers. Easily access information about new suppliers
that may be more suitable for certain regions or products thus ensuring overall
satisfaction among the customer's end products.
+ Thanks for comprehensive and proactive management of suppliers, bringing positive
results in the company's global operations.
+ Pepsico's Supply Chain Management has taken a proactive stance on Quality
Management to ensure the highest quality of their product offerings.
4.1.2 Challenges:
+ The market has many competitors, so it will require stronger supplier capabilities.
+ Ineffective data management.
+ A company that decentralizes its purchasing activities down to the regional level
creates problems with inventory standardization, which affects the quality of the
company's products.
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+ Outsourcing ICT services to a third-party provider also risks leaking important and
confidential company information because it can be a source of a company's
competitive advantage.
4.2 Propose solutions to improve the company's purchasing management based on the
above analysis.
+ Find many different suppliers to avoid risks when the supplier does not provide timely
or unqualified quality raw materials for the production process.
+ Suppliers link together in a mutually beneficial direction, strengthening relationships
with suppliers will maintain and create favorable conditions in the process of
operation and development.
+ Maintain high standards when improving supplier relationships by placing great
importance on improving supplier relations they can secure better prices but also take
steps to ensure the Company's compliance in emerging markets.
Table of contents
1 Overview of PepsiCo Corporation and PEPSI products ..........................................................2
1.1 .Intro ..........................................................................................................................2
1.2 2. Operating System ....................................................................................................2
2 PepsiCo's purchasing management process. ..........................................................................3
2.1 Analyze the current practices of the company's purchasing management which might
include: .................................................................................................................................3
2.1.1 Supplier selection .................................................................................................3
2.1.2 Supplier Scoring and Assessment ..........................................................................4
2.2 Supplier management ..................................................................................................5
2.2.1 How do pepsico manage supplier ...........................................................................5
2.3 How to develop the supplier management of pepsico? ....................................................6
2.4 Receiver process. .........................................................................................................6
2.5 Analyze purchasing ABC .............................................................................................7
2.5.1 Analysis of the EOQ inventory model of Pepsico ....................................................8
2.6 E-Procurement ............................................................................................................9
2.7 Value added when keeping goods in the warehouse. .....................................................11
3 .Assessment of the company's ............................................................................................13
3.1.1 Achievements: ...................................................................................................13
3.1.2 Limitations ........................................................................................................13
4 Conclusion .......................................................................................................................14
4.1 Prospects of product/service development of the company's purchasing management: .....14
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4.1.1 Opportunities: ....................................................................................................14
4.1.2 Challenges: ........................................................................................................14
4.2 Propose solutions to improve the company's purchasing management based on the above
analysis. ..............................................................................................................................14
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