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Suppliers Selection at Pepsico Europe (Portuguese Version, Brazil)

In 2018, Pepsico is considering adding a new supplier of CO2 to its manufacturing process in Eastern European plants. The new supplier offers a very competitive price, but other key aspects, such as reliability, service level, etc. should be carefully pondered before making a decision. Also, adding a new supplier implies removing one of the extant ones. Which one should be removed? The proposal made by Migdalski, head of purchasing in Eastern Europa, has to be analyzed before a firm decision is made.

Collection: IESE (España)
Ref: P-1190-PB
Format: PDF
Number of pages: 11
Publication Date: Feb 26, 2021
Language: Portuguese Brasil, English, Spanish

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Description

In 2018, Pepsico is considering adding a new supplier of CO2 to its manufacturing process in Eastern European plants. The new supplier offers a very competitive price, but other key aspects, such as reliability, service level, etc. should be carefully pondered before making a decision. Also, adding a new supplier implies removing one of the extant ones. Which one should be removed? The proposal made by Migdalski, head of purchasing in Eastern Europa, has to be analyzed before a firm decision is made.
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Year: 2018
Geographic Setting: Europa

Learning Objective

The goals of the case are as follows: 1. Understand the importance of the purchasing function for manufacturers and retailers alike 2. Learn what key drivers of purchasing decisions are. 3. Present Kraljic's matrix and its implications for management 4. Understand that price is just one driver of supply decisions, but there are many more. The case has enough numbers to be addressed in programs such as MBA, EMBA, or MiM. But it can also be tackled at the strategic level, without performing many numbers, which makes the case also suitable for PDG, PDD, PADE, and the like.

Suppliers Selection at Pepsico Europe (Portuguese Version, Brazil)

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"Suppliers Selection at Pepsico Europe (Portuguese Version, Brazil)"