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PepsiCo Latin America Achieves Over 80% Forecast Accuracy, Driving Greater Precision
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
- Functional Applications - Inventory Management Systems
Applicable Industries
- Food & Beverage
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- Software Design & Engineering Services
- System Integration
The Challenge
PepsiCo Latin America, a long-time Blue Yonder customer, was seeking a customer-focused and perfectly synchronized value chain, supported by standardized usage of its supply planning and execution solutions across 16 countries. As demand variability, materials costs and transportation expenses increased, this value chain would enable greater speed, accuracy and responsiveness. The company was looking for a solution that could integrate and roll out its solutions in demand planning, supply planning, inventory optimization, shipment scheduling and promotions across 34 countries.
About The Customer
With $7.2 billion in annual sales, PepsiCo Latin America employs more than 70,000 people in 34 countries. Its beverage, food and snack products include major global brands such as Pepsi, Quaker, Lays and Gatorade as well as brands tailored to regional and local markets. The company was looking for a solution that could help it manage its supply chain more efficiently, reduce costs, and improve forecast accuracy.
The Solution
PepsiCo Latin America partnered with Blue Yonder to integrate and roll out its solutions in demand planning, supply planning, inventory optimization, shipment scheduling and promotions across 34 countries. Horizon, the largest supply chain transformation effort in the company’s history, seeks to transform supply chain planning, as well as automate and integrate all the processes that comprise it. Blue Yonder’s demand planning capabilities consolidate and synchronize demand signals, as well as external variables, across PepsiCo Latin America’s diverse markets. The company can make more accurate, profitable decisions, from inventory staging to maximizing usage of manufacturing resources. Fulfillment capabilities from Blue Yonder help PepsiCo Latin America balance all the factors that determine inventory placement, including demand signals, customer service targets, safety-stock policies and shelf-life constraints — all while keeping inventory costs low.
Operational Impact
Quantitative Benefit
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