Describe the challenges faced by the company from a global perspective in distributing its products or services

Transportation and storage make the system of distribution. The demand for Pepsico keeps on fluctuating with the season which is considered a major challenge for the company. Pepsico produces beverages that are only demanded in the summer season but some of its beverages like Tropicana have a constant demand over the year. Thus, the supply chain needs to be very flexible and should assure the on-time distribution. For this purpose, there is a need to synchronize the inbound and outbound of services. Pepsico already possesses a strong and flexible distribution network which will minimize the transportation and storage cost.

Pepsico forecast the product demand and then make arrangements for the storage as space according to that which is called cross docks. The efficiency of the supply chain network also depends on the mode of transportation the company is taking like ships, air, or roadways and what route they are choosing to optimized, and hence, reducing the cost.

Wide research has to be made in order to collect the factors which will recognize the quantity of the product to be distributed in order to reduce the storage cost when storing them. Now, here the company can either own the warehouses or take the space on rent for the store.

Pepsico can have a direct network that supplies the product to the retailer instead of taking the wide network range which consists of so many participants and then the retailers can directly sell the products to customers. Pepsico can also have the online channels to distribute its product under the pantry section of the websites which also offers and delivers groceries online.