Describe the challenges faced by the company from a global perspective in sourci

Question

Describe the challenges faced by the company from a global perspective in sourcing materials for its products or services. What are the options? Which is the best option? Make recommendations to resolve the challenges.every company sources raw materials. You must find your company’s sources and how they coordinate buying in all the foreign countries in which they operate. How do they maintain consistent quality from manufacturing facility to manufacturing facility?

Can you help me with any of this information on PepsiCo? I have tried numerous times to figure out what I am being asked, and am getting the information wrong. Any information should have references. Thank you in advance.

Explanation / Answer

The company operating in different countries face several challenges in sourcing of materials. The one of the reasons may be the different climatic conditions which is different and considerably varies across the different nations. The countries which are having tropical climate may face issues in handling and storage of perishable products, extreme conditions may bring change in chemical and physical properties of the raw materials. The extreme conditions can cause logistics halts also disrupts the whole supply chain management .The environmental degradation and social movements against the depletion of resources in the different countries can pose a challenge to sourcing of particular material. The poor economic and social setup may affect sourcing since availability of resources from the area may not be congenial to operate business due to pilferage, threats. The unstable political setup and ever changing laws of land, taxation, legislation of particular countries may put hurdles in sourcing of material. The non standard practices applied by the suppliers, uncontrolled process , ways and in consistent quality of materials from the suppliers is also a challenge. Unless the input material is of good quality, the output cannot be expected to be good.

The options for the multinational companies is to apply uniform criteria for supplier selection and set standards of operations which are expected from suppliers with extent to their environment , social and economic responsibility towards the area and community in which they are operating .The suppliers should be treated as a family and integrated part of the company. Their processes , their manpower skill sets , their technology is to be audited and supported by the company in terms of providing training to increase skill set of employees , helping them in standardization of the processes , helping in upgrading the technology like air conditioning of the plant , warehouses , refrigerated vehicles for carrying perishable products , improved SCM system.

The company in which I work has set up standard operating procedures for all the suppliers and signed off a contract for fair trade practices and code of business ethics. The regular audits , corrective and preventive action plan for non conformities and steps towards environmental , socio-economic sustainability and strict adherences are ensured. The rewards and recognitions for suppliers for good manufacturing practices and other parameters like delivery , quality are mapped. The quality teams are providing training at suppliers’ facilities too for there in process checks .Our company is firm believer of treating our suppliers as our partners .

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