Pepsi 2005 Annual Report Download - page 15

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Business Process Transformation/Project One Up
Execution begins long before our products are delivered. PepsiCo’s Business
Process Transformation (BPT) initiative is addressing the changing market and
needs of our customers. In the past, PepsiCo divisions operated on separate
information systems and had varying business processes. In 2004, we
embarked on a journey to change our business model to better meet the
needs of our retail customers. The most central piece of our BPT efforts is an
implementation called Project One Up, so named because it will allow us to
“one up” the competition. It’s a multi-year project to simplify and synchronize
our business processes and tools into one common platform.
We believe Project One Up will help PepsiCo in key areas:
• Customer insights — We will collect more and better consumer behavior
and marketing insights to increase sales.
• Procurement — We will consolidate and optimize purchasing to reduce
costs and ensure supply.
• Supply chain — We will manufacture and distribute our products faster and
more efficiently, based on the increased information and new processes.
• Finance — We will consolidate billing and provide more complete and
responsive financial data to our trading partners.
• Go-to-market — We will share information throughout PepsiCo faster and
with more efficiency, improving customer service.
We have a dedicated team of representatives from various divisions and
functions working on Project One Up.
Making Every Penny Count
Innovation can improve our processes. When our treasury team required a
banking system with global visibility to optimize PepsiCo’s investments, they
teamed with Citigroup to develop a web-based tool called “TreasuryVision” that
provides views of real-time balances, cash positions, investments and borrowings
worldwide. Every day, in countries around the world, our sales force receives
payments from stores for products and deposits those funds across hundreds of
bank accounts. In the past, there may have been a lag of up to several days
before our treasury team had access to these funds. The new system will provide
visibility to these funds and will enable us to invest them more efficiently.
-600 -400 -200 0 200 400 600 800
Kellogg
Coca-Cola
Top Contributors to U.S. Supermarket Growth
$ Retail Sales in Millions 2002-2005
During the period from 2002 to 2005, PepsiCo was the largest
contributor to U.S. supermarket growth.
0 500 1000 1500
Mountain Dew
Lay’s Potato Chips
Fresh Express Salad
Oscar Mayer Lunchmeat
Gatorade
Campbell’s Soup
Diet Coke
Tropicana Pure Premium Juice
Pepsi-Cola
Coca-Cola
Dole Fresh Cut Salad
Diet Pepsi
Doritos Tortilla Chips
Largest Food Brands in U.S. Supermarkets
Estimated $ Retail Sales in Millions. Excludes alcoholic beverages.
Seven of PepsiCo’s brands rank among the best-selling food
and beverage brands in U.S. supermarkets. No other company
comes close.