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Compressing Order Lead Time to Reduce Safety Stock Inventory

With the goal of achieving divisional, as well as corporate, financial objectives, Pepsico executives sought to improve inventory management leading to a reduction in inventory. 

The Tauber team developed and piloted recommendations that resulted in considerable inventory reduction without adversely affecting service levels or increasing transportation costs.

The team also recommended process changes including enhancing inventory visibility for order planners to tender truckloads in parallel with finalizing order quantities, exploring adding headcount to the supply planning group and hub facilities to enable further lead time compression and utilizing existing SAP modules to more accurately project safety stocks and order quantities.

View team project summary

Student Team:

Shantanu Bhattacharyya – Master of Supply Chain Management

David Gordon – Dual (MBA & Master of Science in Natural Resources & Environment)


Project Sponsors:

Alex Baxter – Vice President, Supply Chain Planning, PepsiCo

Erika Lewis – Senior Director, Supply Chain Strategy, PepsiCo


Faculty Advisors:

Mark Daskin – College of Engineering

Brad Killaly – Ross School of Business

Project Photos