Snapple 2012 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2012 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 135

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135

As an example, we’re using RCI to develop a strategy to help meet stretch goals related to inventory and warehousing
across all of North America. As part of the process, each business unit followed a structured sequence of events
that began with improving changeover times on production lines as well as transit times and implementing the Lean
technique of replenishment pull systems. As a result, we lowered inventory levels in our warehouses while receiving
awards from customers for service. Although we see more opportunity to improve, DPS is now world class among
large CPG companies in the food and beverage industry for maintaining the lowest days sales in inventory.
In 2013, we’ll focus on driving Lean principles into more of our business, including direct-store-delivery order
fulfillment, cold drink productivity and the procure-to-pay process. In addition, we’ll collaborate with our suppliers
and bottling partners, using Lean principles to improve the entire value stream.
DPS DAYS SALES
IN INVENTORY
55.0
50.0
45.0
40.0
35.0
30.0
25.0
20.0
2010 2011 2012
DPS has reduced the number of days sales in inventory
by nearly 40 percent since 2010, while our rate for
filling customer cases has improved.
49.1
39.6
31.6 29.3
RETURNING CASH
TO SHAREHOLDERS
OVER TIME
(In Millions)
‘10 ‘11 ‘12
*One-time payments of more than $1.6 billion from The Coca-Cola Co. and
PepsiCo, Inc. in 2010 helped fund additional share repurchases.
**DPS made tax payments of $54 million in 2011 and $531 million in 2012 related
to the PepsiCo, Inc. and The Coca-Cola Co. licensing agreements.
Dividends Paid
Share Repurchases
$1,307*
$773** $684**
13
RCI helps free up critical resources that
we can redirect toward building our brands,
growing our business and providing strong
total shareholder returns in the years ahead.