• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


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. ...read more.


As a general approach, it should target companies that do not have transport/logistics as their core competencies. For instance, manufacturing companies may not necessarily have strengths in logistics/transport services and Frito-Lay, given its success in logistics and transport can leverage its strengths and capabilities in this area. This would then allow the customers to focus on their own core competencies. b. Company analysis: Frito-Lay should then evaluate its own core strengths in providing backhaul services. Does success as being its own logistics provider translate to efficiencies in being a third party logistics provider or are its current services too specialized for its needs? Does Frito-Lay have a unique positioning/competitive advantage in providing this service as opposed to other logistics providers? Arguably, Frito-Lay's current delivery system may be too customized for its own customers demands and it may be a challenge to coordinate backhaul services especially with its existing VSP system (vehicle scheduling program) which appears to be inflexible and unsophisticated to serve even Frito-Lay's own transport needs. c. Competitor analysis: Frito-Lay should systematically evaluate whether competitors exist in the market that can have a competitive advantage in providing logistic services. ...read more.


d. The evaluation of the expected gross margins seems aggressive at 65% after 11 years of operations, especially since at no point is competition introduced into the assessment. e. Another factor is that management would like to halt the rise in delivery costs, which may have more to do with excessive service to sales policies. Backhauling may simply mask a larger growing problem. f. The overwhelming lack of company support from the sales department to the drivers makes it very difficult to launch. Instead, in order to reduce the rise in delivery costs, Frito-Lay may consider the following: a. Invest in IT improvement, particularly their vehicle scheduling system (currently VSP), which is currently ineffective and cumbersome to use. A more efficient and coordinated IT system can streamline the scheduling process, thereby reducing delays and their attendant costs. b. Reevaluate its distribution network (plants, regional units) to find a way to minimize interplant transfers, or the tiered delivery process for specialty products. One way to address this is to evaluate the flow of goods through the various plants followed by reconfiguring the delivery routes to increase efficiency. An IT system (as mentioned in part a) can facilitate this process. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Computer Science section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Computer Science essays

  1. Review of the article "Supply Chain Analysis at Volkswagen of America".

    As a result, dealers and OEMs were only loosely attached within the system creating many disadvantages for both parties. Dealers were encouraged to carry as much inventory as possible, even though realizing that it was threatining for their businesses. Moreover, they were dependent on OEMs because they could restrict supply or appoint competing dealers.

  2. I have been given the task to design a database for a company called ...

    * A computerised system can find files within seconds where as on a card filing system it would take people a lot longer as it has to all be done by people and then the process is subject to human error.

  1. ict implementation

    eg when I made the customer details macro I will do the following as shown below. Once customer details has been selected I then clicked stop on the macro button as shown below . Step 5 once I had clicked stop I then clicked on the picture which was relevant

  2. Smart Card System

    The default filename is "htaccess". In Basic Authentication (lower authentication method) operation, the password is passed over the network, it is not encrypted but not as plain text, it is "uuencoded." Anyone watching packet traffic on the network will not see the password in the clear, but the password will

  1. CP3 - Proposed Solution to a Realistic Problem - Apartment Administration software

    It will also be possible encrypt the text located in the file. The data will be in a record format as follows; Field name Field type Field size username string 10 password string 8 Contact details file The contact details file will hold several more fields than any other file.

  2. Computer Aided Design Package

    After finding out more on DeltaCAD, TurboCAD and AutoCAD I have found out that the latest versions of these three CAD packages are DeltaCAD 5.0, TurboCAD 10 and AutoCAD 2005. DeltaCAD is made by a company called Midnight Software, TurboCAD is made by a company called IMSI and AutoCAD is

  1. Robot Prototype design principles.

    This Prototype becomes easy and user friendly when the user has a variety of options, e.g. the decision of how many players want to play the Prototype, and what Prototype they want to play etc. The algorithm which will be used to implement the prototype program will be as follows: Packages random, system, calendar Start Read system time (in seconds)

  2. Processor Scheduling

    First Come First Served (Also known as First in First out F.I.F.O) This method makes the processor process in order of arrival. It can be a very slow method of processing due to the illogical order. The average speed of processing can be minimised when processing in the reverse order.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work