Evaluate the design and operation of Frito-Lay's logistic network.

The first 200 words of this essay...

XP 75 Operations Management

Frito Lay, Inc: The Backhaul Decision

1. Evaluate the design and operation of Frito-Lay's logistic network.

Logistics is a supply chain effort involving the planning, implementation and control of the forward and reverse flow, storage and services of goods from origin to destination.

Frito-Lay's logistics defined its mission as delivering the right product, to the right place at the right time, in the right amount, in a cost effective manner.

The logistics system is complex and consists of six geographic zones. The managers of the zones were responsible for their own logistics and there was very little interaction between the zones. They primarily utilized their own private fleet of trucks and supplemented it with third party carriers to transport its less service sensitive shipments such as inter-plant shipments. They had a very high on-time delivery rate of 99.1%.

The private fleet coupled with the CADEC system allows fleet drivers to maximize productivity and provide excellent customer service. The CADEC system is designed to support regulatory reporting. It routinely tracks trip events from the perspective of the driver and the time between significant points of travel. It has good reports and