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Pepsi America

Essay by   •  March 28, 2016  •  Case Study  •  310 Words (2 Pages)  •  1,781 Views

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  1. What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business?
  1. 2009 recession
  2. The product line multiplied in a short period of time
  3. Declining US market for soft drinks
  4. Chains like walmart, cvs, gas stations preferred high centralized agreements and contracts

  1. What investments in information management capabilities were taken in this regard? Why were they obtained and how did they actually contribute?

Information System Investment

Information Management Need

Contribution of the System in Operation

Customer relationship management system

Facilitate the capture and retrieval of qualitative information concerning individual customer relationships within the new customer serving structure

Capture the details of the interactions with customers and document past meetings and contract negotiations

SCM system

The need for a complex three tiered distribution platform

Allowed PAS to navigate and optimize 3 tiered platform

Supply chain management

Better enables the management of bottling and distribution

Helps with integrating its core

  1. Establish for yourself a picture of PepsiAmericas before and after the decision to exploit the use of information to inform business processes across the enterprise.

PepsiAmericas Before Its Investment in BI

PepsiAmericas After Its Investment in BI

Operations:

  • Distrubution by local delivery persons
  • Owned routes to retail stores
  • System reliant on one person

Operations:

  • Automated data capture at every step of the operation
  • Lowered supply chain operating costs
  • Correctly monitor customer demand

Management and Control:

  • Distribution by local delivery person
  • Each person tracked own data
  • Each region had their own contracts

Management and Control:

  • Used customer data as an asset
  • Ability to strike more profitable contracts
  • .

Planning, Corporate Learning, and Innovation:

  • Unable to modify uniformity of product packaging
  • Couldn’t adapt to centralized procurement and contracts
  • .

Planning, Corporate Learning, and Innovation:

  • Innovating new packaging for less
  • Increasing efficiency and accuracy of distribution networks
  • .More detailed info means more detailed contract negotiations

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