Pepsi America Case Study
1. The following listed factors made PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business. * Growth in product variety from 35-40 to nearly 400, * Lowering of PAS profit margins, * Recession in U.S economy, * Decline of U.S market for carbonated soft drinks, * National Clients like CVS, Wal-Mart and Mobil Gas Stations preference of highly centralized procurement arrangements, * Hard to track product flow on various process like distribution, sales, raw materials and so on.
2. The investments in information management capabilities with their impacts are listed below: INFORMATION TECHNOLOGY | IMPACTS | 1. Supply Chain Management (SCM) | 1. Took tracks of requirement and supply, It also compared fulfilled the requirement since real time client necessity was fetched.2. Real time product flow information and helped to make next production. | 2. Enterprise Resource Planning (ERP) | 1. Integration in business processes.2. Automated data capture on real time.3. Collection and measurement of business process outcomes for better management, control and planning.4. Helped to negotiate better contracts for raw materials.5. Monitor consumer demand, and ultimately strike profitable deals with its large retail customers.3. | 3. Data Warehouse | 1. Used customers’ data for competitive asset, and collecting information.2. Helped in management and control of the business process flow.3. Predict business flow. |
3. PepsiAmericas Before Its Investment in BI | PepsiAmericas After Its Investment in BI | Operations: 1. Manual and much of human efforts. 2. Operation like supply was time consuming and hard to perform. 3. Operation like supply was not meeting the requirement or was over. | Operations: 1. Automatic Operations were performed that reduced time and effort. 2. IT tool like SCM helped to meet customer requirement. 3. Tools like MM helped to manage material flow
2. The investments in information management capabilities with their impacts are listed below: INFORMATION TECHNOLOGY | IMPACTS | 1. Supply Chain Management (SCM) | 1. Took tracks of requirement and supply, It also compared fulfilled the requirement since real time client necessity was fetched.2. Real time product flow information and helped to make next production. | 2. Enterprise Resource Planning (ERP) | 1. Integration in business processes.2. Automated data capture on real time.3. Collection and measurement of business process outcomes for better management, control and planning.4. Helped to negotiate better contracts for raw materials.5. Monitor consumer demand, and ultimately strike profitable deals with its large retail customers.3. | 3. Data Warehouse | 1. Used customers’ data for competitive asset, and collecting information.2. Helped in management and control of the business process flow.3. Predict business flow. |
3. PepsiAmericas Before Its Investment in BI | PepsiAmericas After Its Investment in BI | Operations: 1. Manual and much of human efforts. 2. Operation like supply was time consuming and hard to perform. 3. Operation like supply was not meeting the requirement or was over. | Operations: 1. Automatic Operations were performed that reduced time and effort. 2. IT tool like SCM helped to meet customer requirement. 3. Tools like MM helped to manage material flow