Demand Forecasting for Pepsi
PEPSICO, INC.
Custom Supply-Chain Planning Solution Enables PepsiCo to Optimize Manufacturing and Distribution against Seasonal Sales Demand
PEPSICO BUSINESS NEEDS AND CHALLENGES PepsiCo approached PCA, seeking improvements to how they managed their supply-chain planning and forecasting operations — their ability to optimize manufacturing, distribution and warehousing of hundreds of different beverage products and snack foods against seasonal sales projections across European, Middle East and Asian continents. Under-production meant lost revenue; over-production resulted in unnecessary manufacturing costs and waste of highly perishable product with a short (30 day) shelf-life. Joanne Metzke, PepsiCo’s senior Supply Chain Manager for EMEA was tasked with making such improvements, including implementing proprietary best practices. These processes have been a mainstay in PepsiCo culture – providing the company with competitive advantage and vital insight into product sales, production, distribution, and scheduling. “At the time, most of our facilities weren’t quite ready for SAP, but we did require more sophistication than Excel spreadsheets could provide,” stated Joanne. “Ultimately, we needed to connect key people and processes, all under PepsiCo’s best practices, which many commercially-available software tools struggled to support.” PepsiCo’s unique requirements demanded a custom solution that could make immediate improvements in their overall demand forecasting and supply planning process, enable centralized administration of EMEA’s entire demand, product, and deployment planning process, and offer the flexibility to support expansion into new markets and cultures. In the end, PepsiCo needed a secure “one-stop shop” for distributed planning managers to forecast, report and track sales, production, and distribution numbers.
ESSENTIALS
Challenges Requirements Too Complex For MS Excel Dynamic Reporting of Daily Supply, Consumption, Distribution,
Custom Supply-Chain Planning Solution Enables PepsiCo to Optimize Manufacturing and Distribution against Seasonal Sales Demand
PEPSICO BUSINESS NEEDS AND CHALLENGES PepsiCo approached PCA, seeking improvements to how they managed their supply-chain planning and forecasting operations — their ability to optimize manufacturing, distribution and warehousing of hundreds of different beverage products and snack foods against seasonal sales projections across European, Middle East and Asian continents. Under-production meant lost revenue; over-production resulted in unnecessary manufacturing costs and waste of highly perishable product with a short (30 day) shelf-life. Joanne Metzke, PepsiCo’s senior Supply Chain Manager for EMEA was tasked with making such improvements, including implementing proprietary best practices. These processes have been a mainstay in PepsiCo culture – providing the company with competitive advantage and vital insight into product sales, production, distribution, and scheduling. “At the time, most of our facilities weren’t quite ready for SAP, but we did require more sophistication than Excel spreadsheets could provide,” stated Joanne. “Ultimately, we needed to connect key people and processes, all under PepsiCo’s best practices, which many commercially-available software tools struggled to support.” PepsiCo’s unique requirements demanded a custom solution that could make immediate improvements in their overall demand forecasting and supply planning process, enable centralized administration of EMEA’s entire demand, product, and deployment planning process, and offer the flexibility to support expansion into new markets and cultures. In the end, PepsiCo needed a secure “one-stop shop” for distributed planning managers to forecast, report and track sales, production, and distribution numbers.
ESSENTIALS
Challenges Requirements Too Complex For MS Excel Dynamic Reporting of Daily Supply, Consumption, Distribution,