Question
Pepsico is a global giant with an impressive lineup of various types of consumable products. PepsiCo products are distributed and sold in over 150 countries,
Pepsico is a global giant with an impressive lineup of various types of consumable products. PepsiCo products are distributed and sold in over 150 countries, with its operations being expanded yearly into more. According to PepsiCo, they spent over $700 million in research and development as part of their continued investments in the development of innovative and quality food products. They operate over 290 production and manufacturing facilities to bring together a dedicated team of innovators and operations teams continue to develop efficient means of production while utilizing energy, water and ingredients to create their iconic products.
Since their inception, their company owned logistics and transportation vehicles have traveled billions of miles, bringing PepsiCo products to millions of its customers. As technology advances in the realm of sustainability, PepsiCo has upgraded its fleet of vehicles and operations to reduce their carbon footprint as much as possible. Its implications of globalization while designing and developing its supply chain strategies is their pledge to achieve their marketing and profitability goals by utilizing the most sustainable means necessary. In their website, they state their goals are as follows " to design 100% of packaging to be recyclable, compostable, or biodegradable by 2025; increase recycled content in our plastics packaging to 25% by 2025; reduce 35% of virgin plastic content across our beverage portfolio by 2025; invest to increase recycling rates in key markets by 2025" (Pepsico, 2021).
The key drivers of change that affect their supply chain strategy is their pledge to actively target every stage of their supply chain, continue to utilize resources efficiently, replenish the water supplies in communities they operate in, reduction of dangerous greenhouse gas emissions, and maintain a functional reverse logistics solution for packaging materials. Their dominant strategy is operating a global supply chain where product packaging never gets wasted after consumption. Their reverse logistics program called Beyond the Bottle drives the development of sustainable product packaging and leads the way to improve recycling facilities in every country they have operations. My recommendation is for PepsiCo to continue their course towards their sustainability goals for 2025 and beyond. The race with other companies towards the use of recycled plastic and a zero carbon footprint creates a positive environmental and profitability impact in every country they operate in.
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