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Pepsico implements TMS and VMI

Pepsico predicts 3% transport cost savings and 2,000 tonnes less of co2 in one year

ROI REACHED IN 6 MONTHS

20% INCREASE OF TRUCKS FILLING

DECREASE INVENTORY BY UP TO 50%

SERVICE RATE : 99,6%

An entity of the world’s second largest food group, PepsiCo France claims a “start-up” spirit to develop its brands on three distribution channels.

Within the framework of a major project to revamp the Supply Chain, the industrial firm set up a radically innovative organisation of its production and logistics. It transferred production to four factories in France, outsourced to industrial firms in the sector, hence to competitors such as Orangina Schweppes or Refresco. It then removed its old storage platforms. 80% of customer deliveries are now made directly from the production sites in a pooled manner.

Results speak for themselves and ROI was achieved within six months. For the restaurant and catering channel, the TMS On Demand solution by Generix Group makes it possible to calculate the best delivery circuits, at the same time optimising lorry loads thanks to combining heavy and light products. For example, pallets of crisps are positioned on top of pallets of drinks. This increases truck loads by 20% for this activity, where previously the load was 40% full.

With VMI by Generix Group, each factory calculates replenishment orders of its supermarket customers by mixing the products of four pooled players (co-managed inventory – CMI). Truck loads are always full and customers receive smaller quantities of each reference on a more regular basis. Stocks are thus reduced by up to 50% and the customer fill rate is 99.6%.