Caroline Giltinan
Supply Chain Director, PepsiCo Ireland
Joe Burke
Supply Chain, Senior Director, PepsiCo Ireland
Since the beginning of 2019, PepsiCo has experienced a significant rise in the number of supply chain disruptions across our global network.
Since the beginning of 2019, PepsiCo has experienced a significant rise in the number of supply chain disruptions across our global network.
Proactive supply chain risk management
We have taken key learnings to help us shape our overall risk management strategy, where we are driving to move from a reactive to a proactive risk management approach. This is grounded in a step change in data insights and visibility and combined with more integrated processes. It is challenging our overall supply chain footprint and helping us make more informed decisions ahead of time. This approach is intended to not only reduce the number of disruptions but also the impact of each disruption on our cost to serve.
With the right technology, we can enable
key concepts that will create a more
proactive operating environment.
Enhancing supply chain resilience
Supply chain disruptions ultimately impact profit sales and service. With the increased risks we are facing on an ongoing basis, we have elevated, reducing the rate and impact of disruptions, to be a more central consideration in our overall business strategic planning.
This requires us to go beyond traditional risk management tactics, like investing in technology for risk visibility and hedging inventory, by implementing global network modelling capabilities to assess our supply chain’s scope and resilience. If we can work, over time, to reduce our overall supply chain surface area from our experiences to date, this will help us reduce the rate and impact of disruptions.
Simplify, automate, reduce supply chain
Reducing our overall supply chain surface area means we need to simplify and automate key supply chain processes, reduce movement within supply chains, reduce the number of logistics routes and reduce supplier sites. This reduced footprint naturally reduces our exposure to the multiplicity of global events and associated disruptions.
To reduce our supply chain surface area, or number of touchpoints required for us to deliver great service, we are undertaking a programme of Digital Transformation in Supply Chain. This encompasses people, processes and technology. Technology on its own will not solve current or future challenges. However, with the right technology, we can enable key concepts that will create a more proactive operating environment.
These concepts have been developed by understanding best practices, truly knowing our own business end-to-end and identifying opportunity areas. With the right people and organisational structure, smart process design and the right technology, we can bring our supply chain organisation to the next level.
