Frito_Lay Case - 1257 Words

Bryan Robichaud Professor Desmarais POM 465 October 8, 2013 Frito-Lay: The Backhaul Decision Frito-Lay was the largest manufacturer of salty snacks in the United States. With 27,000 employees and sales of $2.053billion in 1982, it was the only full-line salty snack manufacturer distributing its product nationwide. Before the Motor Carrier Act of 1980, companies with private trucking fleets are generally prohibited from selling transportation services to other companies. Deregulation of the trucking industry in 1980 allowed private operators to provide transport services for hire. In 1983, as part of efforts to offset the increased costs of distribution, Frito-Lay considering selling your miles on other bands transports†¦show more content†¦By adding more products to ship you must do things faster to keep on schedule. A huge con in this program is contamination of company equipment, agricultural products might harbor rodents and insects that could infest the trailers and harm Frito-Lay goods. Another huge con is there could be an increase in theft depending on what the trucks are shipping. The trucks could be shipping items such as electronics, tobacco, or alcohol. I feel that Frito-Lay should come up with some type of insurance policy so that they are not held reliable if something happens to other companies products. The drivers will also most likely not be on board with this program because it keeps them away from home longer and worker harder and longer. There are strengths and weaknesses of the service offering from a customer’s perspective. The strengths are potential savings because Frito-Lay trucks must always drive back to their original distribution center, so they can offer low prices to ship other company’s products. Also, fuel costs go up because of weight, but with the amount of money that they will make shipping other companies products, the price of fuel would not even be a factor. Strength is that companies that are looking to ship low weight low cost goods for a low price, they could us the backhaul program. The weaknesses are that Frito-Lay is not a 3 party logistics, so cannot offer things that a 3 party logistics company could offerShow MoreRelatedPepsico Case8696 Words   |  35 Pagesmisleading. Additionally, many consumers do not realize that labeling laws are not as strict in the U.S. as in other countries. For example, U.S. manufacturers do not have to label whether a food product contains gene tically-modified ingredients. In these cases, it is often the informed consumer or watchdog group that calls for action, as PepsiCo inevitably discovered. On top of the tap water dilemma, water bottle companies are dealing with criticisms for the amount of plastic these bottles contribute to