Supplier Relationships: An Inside Look at Pepsico

Supplier Relationships:

An inside look at PepsiCo

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Report by Regan Jones

S2799945

Word Count: 1943

Table of Contents:

1. Executive Summary
2. Introduction

2.1        Why are Supplier Relationships Vital for Success?

1. The Elements of a Successful Supply Chain Partnership

3.1        The Key Elements

1. A Different approach to building stronger supplier relationships

4.1        Collaboration Approach

4.2        Dimensions of Collaboration

5.0        Relational Supplier Relationships

5.1        Why Choose Relational Mechanisms?

6.0         Building Trust within your Supply Chain

7.0        Conclusion & Recommendations

Executive Summary

This report was commissioned to investigate how PepsiCo can foster better supplier relationships in the future. SermSuk and PepsiCo ended their supplier relationship; this resulted in cola market share in Thailand decreasing substantially. The research conducted illustrates different methods and approaches on how to maintain and manage supplier relationships.
It is suggested in the report that:

• PepsiCo use Collaboration approach to relationships within the supply chain
• PepsiCo learn the correct ways to develop trust through the trust development models
• Relational techniques are used in the future with business dealings
• Use the key elements to create better partnerships within the supply chain

The report evaluates and recommends that if PepsiCo wishes to be successful in the future with dealings and create stronger supplier relationships, it’s suggested that the methods and techniques described throughout the report are implemented promptly.

2.0 Introduction

Managing a supplier relationship is complex and critical within an entities supply chain. With the global market place being as fierce as ever, it is vital for organisations to forge and build successful foundations for stronger supplier relationships. In 2012, PepsiCo sent shock waves through the soft drink industry as they severed ties with long-standing supply chain partner, SermSuk. For 59 years SermSuk had been providing Thailand with PepsiCo’s products without fault or complications. This report will illustrate the current issues within the PepsiCo supply chain. It will be discussed how PepsiCo can improve it’s future dealings with suppliers in order to practice these relationships successfully in the ever expanding globalised world.