PepsiCo’s ambitious venture into integrated business planning marks a significant step in the company’s digital transformation journey. Speaking on the subject, Gretchen Talley, the global supply chain planning process owner at PepsiCo, described the previous state of affairs as a “mishmash” of varying planning systems across its diverse business units and geographical markets. This fragmentation spurred the company’s efforts to seek a more cohesive strategy that aligns with an “end-to-end vision” for its supply chain operations.
A key component of this initiative has been the utilisation of SAP’s S/4HANA enterprise resource planning (ERP) application. Having already implemented the inventory-optimisation module of SAP Integrated Business Planning (IBP) with great success, Talley noted that expanding this partnership to encompass the wider IBP suite was a logical progression. “So moving into the rest of the IBP suite end-to-end made total sense to us,” Talley stated. Dominick Metzger, president and chief product officer at SAP Supply Chain Management, echoed her sentiments, recognising PepsiCo’s commitment to achieving advanced, state-of-the-art planning across its global operations.
The integration effort is designed to extend beyond PepsiCo’s internal capabilities, encompassing planning for co-manufacturing partners and material suppliers. “It’s totally integrated,” Talley remarked, underscoring the depth of collaboration facilitated by this new system. Following the implementation process, a comprehensive template was created using data from all aspects of PepsiCo’s operations; this model was then tailored for each market and product line. The overarching aim was to establish “a single source of truth,” offering flexibility to cater to the distinct needs of various brands and regions.
The tangible benefits of this integrated approach have been significant, as cited by Talley: “The end-to-end threading of demand throughout the system in native integration.” Not only does this streamline operations, but it also enhances decision-making processes, allowing PepsiCo to respond more agilely to market changes.
Furthermore, as part of this digital transformation, PepsiCo has had to address skill gaps within its workforce to ensure a smooth adoption of these advanced systems. The company has implemented tailored SAP training courses, leading to over 925 training sessions and more than 9,240 learning hours in a year. This focused effort has fostered employee engagement, retention, and innovation, ultimately contributing to the successful rollout of the PepsiCo Global Template.
PepsiCo’s efforts are not merely confined to its integrated planning. The company also faces challenges in other areas, such as financial performance reporting. Previously, PepsiCo Mexico Foods struggled to close month-end financials within an acceptable timeframe due to performance bottlenecks with legacy systems. However, with the implementation of TruAllocations, a solution designed to enhance performance using enhancements to BPC 7.5, PepsiCo managed to dramatically reduce the time taken from over 80 hours to just 10 hours. This optimisation further highlights the multifaceted approach PepsiCo is taking in modernising its operational frameworks and financial reporting.
Overall, PepsiCo’s comprehensive commitment to enhancing its business processes through integrated planning and robust training initiatives exemplifies its dedication to leveraging technology for operational excellence. This strategic focus not only supports their expansive global operations but also positions the company as a forward-thinking leader in the fast-evolving landscape of supply chain management.
As PepsiCo continues to innovate and adapt, the effectiveness of their integrated business planning strategy will likely serve as a benchmark for others in the industry striving for similar seamless integration and efficiency.
Reference Map
- Case Study on Integrated Business Planning with PepsiCo and SAP.
- Enhancements in Employee Training and Certification Initiatives at PepsiCo.
- Performance Optimisation in Financial Reporting for PepsiCo Mexico Foods.
- Historical Implementation of Unified Business Platforms at PepsiCo.
- Strategic Insights into Inventory Optimisation within PepsiCo’s North American Division.
- Modernisation of Financial Operations in PepsiCo Mexico through SAP S/4HANA.
- Adoption of SAP S/4HANA for Financial Operations in PepsiCo, USA.
Source: Noah Wire Services
