More effective supply chain lowers costs and improves customer service

Each day in the U.S., 2,000 trucks pull away from more than 120 PepsiAmericas distribution centers, stocked with more than 450 SKUs for over 200,000 customers. We rely on exacting processes, sophisticated technology and well-trained employees to forecast our production needs, and then accurately fill and deliver our customers’ orders.

As the number of SKUs we manage grows, it adds complexity and, potentially, costs. A sound supply chain strategy helps us manage this complexity.

In 2006, we began a test of new applications. Named Customer Optimization, the initiative will improve demand forecasting, increase selling capability through technology, and enhance warehouse processes to build highly accurate orders. With real-time customer and inventory information on the go, our front-line sales teams will be better equipped. The end result will be reduced out-of-stocks, a more efficient supply chain and better customer service.

Also in 2006, PepsiAmericas introduced One Touch, an innovative delivery solution to high-volume accounts with limited in-store display options. This initiative routes product from the manufacturing plant, bypassing our distribution centers, directly to our customers’ stores, which lowers our handling and transport costs.

We also installed new production lines that blow and fill bottles in line. Producing more than 18 million cases a year, the “combi-lines” are both helping to fill consumer demand and lowering production costs.

This innovative approach is what helps PepsiAmericas’ supply chain stay on top of the change curve.

Effectiveness and efficiency. Enhanced hand-held technology provides real-time customer and inventory information for our front-line sales teams. In addition, our international operations added capabilities for unique packaging on our Toma juice line.