PepsiCo’s Distribution Overhaul: A Bold Bid to Boost Margins

Facing persistent margin pressure, PepsiCo is initiating a profound operational shift within its North American business. The core concept is straightforward: one warehouse instead of two, one delivery truck instead of two, and a single invoice. The beverage and snack titan is currently trialing this model in Texas, testing the outcome of delivering chips and soda together, rather than maintaining their traditionally separate supply chains. This operational revolution raises a critical question: can it effectively counter eroding profitability, or is it merely a costly endeavor to buy time?

The impetus for this restructuring is clear. PepsiCo is navigating a challenging landscape characterized by softening consumer demand, shifting eating habits, and compressed Read more...