8.1 Limitations of Study
The following limitations were identified during
study:-1. Rough-cut Method: The supply chain management system proposed for Pepsi Haidri Beverages was, in the first stage, has been designed using the Rough-cut model only. These models typically assume a "single site" (i.e., ignore the network) and add supply chain characteristics to it, such as explicitly considering the site's relation to the others in the network. Therefore, the supply chain system proposed for the company would only contain suppliers and distributors of Pepsi Haidri Beverages Islamabad only. The other franchise owners of Pepsi will be connected to the supply chain in future, as mentioned in article 8.2,
2. RFID Technology: RFID technology has not been proposed due to the huge budget required to implement this technology. Moreover, the company does not need this technology since, firstly, tracking of the items being sold is already supported by the SCM features and secondly, the distribution area is limited to urban and rural areas of Rawalpindi and Islamabad district only.
3. Supplier Connectivity: the number of suppliers connecting to the proposed system is expected to be more or less 10-20%. For this purpose, the company is expecting to connect only those suppliers who supply major items like concentrate, cans, sugar and plastics suppliers.
8.3 Customization vs. Re-engineering
Most of the modules proposed in the supply chain system are re-engineered, that is, they need major changes in the core business processes. The modules which needed some customization include the
following:-• Forecasting
• Sales
• Distributor and manufacturer inventory
• Production scheduling and control
From the above modules, sales module is the module that needs maximum customization. The payment modes are proposed to be changed although the payment method would remain the same, that is, advanced payment. The requirements for distributor and manufacturer inventory management system remain that same with some addition in fields to support decision-making process.
8.3 Future Recommendations
The following enhancements and upgrades are recommended for the proposed system in
future:-1. Expansion of supply chain management system to customers, and in this case, retailers to whom the distributors sell out the product. Retailers will also be provided a facility to connect to the system from where data relating to the actual sales to consumers can be collected.
2. Point of Sale system for distributors: The distributor will be provided a point-of-sale application connected to the system from where real-time data will be captured
3. Distributed database approach: The database supported by the system will be distributed, that is, replicas of database will be created at a number of host sites (the other franchise owners of Pepsi). Local databases to distributors will also be provided to support efficient POS system. This database will be highly synchronized with master databases arranged in a peep-to-peer network arrangement of distributed system.
4. Network security 5. Data mining
6. Connecting other manufacturing locations to Haidri beverages Rawalpindi
7. Complete transformation of legacy systems to ERP-II systems
8.4 Conclusion
Supply chain management is an exploding field, both in research and in practice. Major international consulting firms have developed large practices in the supply chain field.
Through better information engineering, supply chain improvements have resulted in a reduced bullwhip effect, lower inventory levels, reduced logistics costs, and streamlined payments. These improvements appear to have helped macroeconomic benefits such as more stable economic output and higher productivity growth. However, Firms who operate in global environment and deal with multiple suppliers and customers, are required to manage inventories in new and innovative ways, and are faced with possible channel restructuring. The field promises to continue growing as the research advances and as firms continue to apply knowledge in their global networks. Finally, as the internet changes fundamental assumptions about business, firms operating in supply chains will be required to understand this new phenomenon and respond accordingly.
As for Pepsi Haidri Beverages, in order to survive in the current economic conditions as well as the increased competition in beverage industry with the ever growing competitors like Coca Cola adopting new techniques of expanding their supply chain and reaching their customers in a much more efficient manner and producing beverages according to consumer demand, it is more advisable to Pepsi Haidri Beverages to conduct the business in a strategic way with technological support and efficient demand and supply network which seems impossible without supply chain collaboration and information technology support.
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