ERP CIA- 1
ON
DESIGN OF ERP MAPPING
A Report submitted in partial fulfillment of the requirements for the
degree of
Master of Business Administration
By
Anushka Singh- 2027938
Shruti Kumari- 2027940
Mohammed Abrar- 2027933
Rehmat Singh Gandhi-2028104
Alen George - 2028220
Shivani k Nair - 2028149
Under the guidance of
Dr. Vasudevan Murthy
MBA PROGRAME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGLORE
PEPSICO – Introduction
About PepsiCo PepsiCo is a leading global beverage and snack company. A number of salty,
easy, sweet grain-based beverages, snacks, carbonated and non-carbonated beverages and
foods are made, marketed, and sold. Creator of Historical Research Caleb Bradham Indra
Nooyi Pepsi Co Inc., founded in 1965 in North Carolina, is the new CEO of PepsiCo Inc. In
1992, through an agreement with Ocean Spray to sell single-serving juices, Donald M
Kendall launched new items such as Doritos and Funyuns Entered the markets of Japan and
Eastern Europe In 1992, Tropicana was acquired in 1998 and PepsiCo merged with the
Quaker Oats Group, including Gatoradad, in addition to carbonated drinks., in 2001.
Implemented a number of acquisitions with Taco Bell in 1978, Kentucky Fried Chicken in
1986 and Pizza Hut in 1977.
The 4 major business functions are as follows :
1. Manufacturing and production
2. Sales and marketing
3. Finance and Accounting
4. Human Resource
ORDER FULFILMENT PROCESS AT PepsiCo
SALES:
Order fulfilment involves receiving order for the goods, processing the same and delivering
orders to the customers. The process in PepsiCo starts with an order placed by a customer
which is redirected to the sales department. The order is generated by self-automated
computers and is submitted for further process.
The technology in PepsiCo supports order fulfilment with real time data, providing an insight
into the inventory availability and demand productions. The fulfilment strategy is
complemented with the complemented with the online sales channel and technology stand
point . In case if the buyer wants to return a product or there is non-availability of product
then the order fulfilment manages the return transaction process.
ACCOUNTING:
PepsiCo has an integrated accounting ERP software which helps in creating and tracking the
sales order received from the clients. Various activities are undertaken the help of the
software in PepsiCo;
- Prints and mail sales order directly from the CRM
- Integrating the accounting with CRM system
- To create invoices from orders
- Helps in tracking pending order and availability of inventory of inventory at various
locations
All invoices are linked with the ERP account system which helps in identifying unbilled
challans. This helps PepsiCo in saving time in the processing order and eliminating the orders
which has been occurred while processing the same. It gets easier for PepsiCo to centralise
the order which has been received from multiple marketplaces across the world. The efficient
accounting software used in PepsiCo helps in following up the desk tasks to its full potential
PepsiCo has been able to minimise their cost efficiently and effectively by using the account
ERP system. There are three levels in accounting system:
- Apex level: Manages long term investment goals, long range forecasts of firms
financial performance
- Operational level: Oversees firm’s financial resources
- Functional level: Tracks flow of funds and forms through transactions.
MANUFACTURING AND PRODUCTION:
The third-party logistic’s ability to deliver the product has been successfully handled in
PepsiCo. Several technological components have been added to automate the warehousing
process to make the fulfilment process more efficient. Some of these technologies include
radio frequency identification, AI, IOT etc.
CUSTOMER RELATIONSHIP MANAGEMENT in Pepsico
Customer Relationship Management (CRM) is a concept for the information field
Methodologies, tools, and typically internet capabilities that allow an organisation to
coordinate and effectively manage customer relationships. In many instances, an organisation
builds a database of its customers. This database defines relationships in sufficient detail so
that details can be viewed by managers, salespeople, and customer service reps; align
customer expectations with product plans and offers; remind customers of service
requirements; know what other items a customer has bought; etc.
CRM systems play a crucial role for Pepsi in integrating almost 400,000 businesses across
the company. Pepsi has been able to deliver top-line growth and superior customer support
through the use of the CRM system. The new CRM application from Pepsi has facilitated the
conversion of previous fragmented distribution processes into an integrated Internet
application solution, a 360-degree view of the entire consumer base, simplification of the
resolution process, precise and timely deliveries, and a one to two-day reduction in product
inventory close time.With the use of real-time customer data, tel-sel agents, or telemarketers,
through their account, are able to provide up-to-date details on any problems of customer
needs, allowing a clear image of their customers and their relationships with the business.
This often helps staff with their clients to uncover new sales opportunities. The use of real-
time data is often used to boost customer loyalty.
Interaction and satisfaction by using support desks, members of customer service, and
allowing real-time information to be obtained by consumers themselves
Pepsi uses CRM applications to determine profitable customers, uncover potential sales
opportunities, improve customer interactions and relations, and provide the enterprise with
up-to-date customer information.
FROM ORACLE TO SAP:
Consumer product companies are searching for SAP to displace various processes, provide
real-time process visibility to geographic locations and eliminate process redundancies.
PepsiCo is also interested in the functionality of mySAP trade promotion, Grozier
commented, although he did not know when it could be implemented. PepsiCo joins other big
consumer goods firms using SAP as one of the biggest participants in the dynamic food and
beverage companies in the world. A year ago, Dial Corp, a detergent manufacturer, said it
intended to spend $35 million over 18 months to install and configure a full suite of SAP
ERP apps, replacing Oracle's related products.In terms of dollars, SAP's contract with
PepsiCo is expected to surpass Dial's investment several times over. And for reasons similar
to PepsiCo, just a month ago, Tyson Foods also chose the mySAP Business Suite as the
backbone technology framework to complete the integration of its operating units.
LEAD MANAGEMENT IN Pepsico
The influence of Lead is evident by the strength of the leadership pipeline of PepsiCo, the
data-driven approach to discussions between managers and executives, and the strong input
and growth culture of the organisation. In order to quantify the GREAT5 as well as the
related behaviours, LeAD employs numerous methods such as 360-degree feedback,
cognitive assessments, personality indicators, and personalised market simulations. The
evaluation and growth work emphasises various facets of GREAT5 at different levels of
opportunity in the company, using a tiered approach focused on leadership transitions.
OPPORTUNITY TRACKING
Built in collaboration with analytics specialist Black Swan, a key tool in this effort provides
a real-time view of the culinary and refreshment choices that create buzz and burgeoning
popularity among customers.In the beverage market, a "360co Always On" programme has
been triggered. It allows the company to track thousands of components and spaces for profit.
The data collected thereafter offers valuable insight into fields such as creativity, policy,
retail collaborations, etc. This can be used in the opportunity spaces that the company is
interested in while contemplating small acquisitions.
ERP IMPLEMENTATION IN PEPSICO:
In order to streamline its distribution and delivery processes, boost planning and forecasting
and provide greater exposure to its global supply chain, PEPSICO Inc. has selected SAP's full
MySAP Business Suit. In order to better link its supply chain and inventory data with its
consumer data, PEPSICO, which produces, distributes and markets Frito-Layssnacks, Pepsi-
Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.
PEPSICO, for SAP, was a great strategic win because some of the subsidiaries of PepsiCo
As well as Peopl Soft and Siebel CRM systems, Oracle for Enterprise Resource Planning
(ERP) systems are already operating. Pepsico was possibly fed up with the inability of Oracle
to enforce the incorporation of Pepsi's various software applications through its subsidiaries.
When data, device and process integration with other non-SAP applications and databases is
a problem, it's one of the better platforms. PEPSICO Inc. has chosen SAP's complete MySAP
Business Suit to streamline its distribution and delivery processes, boost planning and
forecasting, and provide greater visibility to its global supply chain. Businesses are looking
for SAP to displace various systems, give visibility to geographic locations in real time
processes and reduce process redundancies. PEPSICO which manufactures, distributes
and markets Frito-Lays snacks, Pepsi-Cola beverages, Gatorade sports drinks,
Tropicana juices and Quaker foods, aimed to better link its supply chain and inventory
data with its customer data. PEPSICO, for SAP, was a great strategic win because some of
the subsidiaries of PepsiCo As well as PeoplSoft and Siebel CRM systems, Oracle for
Enterprise Resource Planning (ERP) systems are already operating. Pepsico was possibly fed
up with the inability of Oracle to enforce the integration of the dissimilar software
applications of Pepsi distributed through its subsidiaries. To streamline its distribution and
delivery processes, boost preparation and forecasting, and provide greater exposure to its
global supply chain, PEPSICO Inc. has selected SAP's full MySAP Business Suit. The goal
of PEPSICO, which produces, distributes and markets Frito-Lays snacks, Pepsi-Cola
beverages, Gatorade sports drinks, Tropicana juices and Quaker foods, was to better connect
its consumer data with its supply chain and inventory data.
PEPSICO, since some of PepsiCo's subsidiaries were already operating Oracle for Enterprise
Resource Planning (ERP) systems, as well as PeoplSoft and Siebel CRM systems, was a great
strategic win for SAP. Pepsico was possibly fed up with the inability of Oracle to enforce the
integration of the dissimilar software applications of Pepsi distributed through its
subsidiaries.When data, device and process integration with other non-SAP applications and
databases is a problem, it's one of the better platforms. Companies are looking for SAP to
displace dissimilar systems, offer real-time process visibility to geographic locations, and
eliminate process redundancies.
AS-IS model
Customer places the order for equipment.
CRM Pepsico receives the order and updates into ERP.
P2P(procure to pay)
External Service Management PepsiCo interacts with the vendor and places the
order and updates the same in the system.
PO and SO for services with Goods Receipt(Invoice) is
created.
Accounting and Finance Transaction is updated into ERP system into the
AR(Account receivables by customers) and
AP(Account Payable to vendors).
Order once ready is dispatched by the vendor to
Pepsico.
Supply chain Management The same is updated into ERP system under
Logistics/order management.
Order dispatched by vendor received by Inventory
Inventory/Material Management Management group.
The service entries done by the business themselves.
Dispatch to customer location and installation/service done.
Work
Work performed
performed in terms of
in terms of (hours
(hours of
of service,
service, parts
parts consumed,
consumed,
expenses)
expenses) are
are gathered
gathered at
at time
time of
of work performed(service and
work performed(service and
install).
Same
Same isis entered
entered by
by the
the workforce.
workforce.
CRM Validation and screening Service orders are screened through a
set
set of
of 30+
30+ complex business rules
complex business rules before
before they
they are
are set
set for
for billing
billing
and payment.
After validation of service/installation settlements
are made.
Accounting and Finance Same is updated into AP (Vendor) and
AR(customer) modules of ERP system..
Report if any servicing/repairs or replacement
Equipment Service Management
Change form AS- IS to TO-BE:
1. Integration of CRM , Procurement and SCM
We would like to suggest doing things as they do right now, because they do a good
job, but they can never be too careful like any company, especially if PepsiCo
continues to encourage more suppliers to enter their domain. PepsiCo needs to
maintain an information system like MySAP that integrates the main needs of all its
suppliers. PepsiCo also needs to ensure that changing consumer demand can be
accurately predicted by whatever information they use in the future.
2. Standardize work timings and avoid Manual entry:
Instead of allowing the workforce to manually enter service hours, parts consumed,
expenses, it is possible to standardise the entire process by setting a standard
installation/service procedure so that the actual process can be compared with the
standard process. The system will be incorporated into compliance/ non-compliance
with the standards.
Management Information System (MIS) & Decision Support System (DSS) in
PEPSICO
It provides middle-level executives with reports on the performance and monitoring
activities of the factory and helps to forecast future performance.
Summarizes and reports on fundamental operations using TPS knowledge.
It allows the drill-down facility to check the level of output.
The system is generally not very versatile.
The system uses various modules to gain information from data
Transaction Processing System (TPS) in PEPSICO
It serves operational mangers in the sense that it updates them with the required
activities on floor.
Its principal purpose is to answer routine questions and to track the flow of
transactions through the organizations.
Monitors status of internal operations and firm’s relationships with suppliers
It is the main source of information for other systems
PROPOSED ERP SYSTEM
One thing PepsiCo can do to boost its ERP is to take advantage of the company.
Outsourcing of Process. Outsourcing peripheral operations (Business Process Outsourcing
(BPO)) to external providers is becoming a desirable, cost-effective alternative to managing
them internally for an increasing number of organisations. Companies can concentrate more
on core competencies through outsourcing non-core business processes such as human
resources and procurement and free up valuable resources to drive growth and innovation,
which is Important in the tough markets of today' (SAP BPO). MySAP does not provide
BPO, but SAP supports BPO providers in setting up services that generate sustainable
business benefits byreducing costs, lowering risks, and improving process quality.
PROPOSED SAP SYSTEM
Overall, after trying a number of software systems, Pepsi's CRM applications seemed to
have improved dramatically. Pepsi is currently using enterprise software from MySAP, where
other applications, including Oracle's PeopleSoft, were previously used. We see the current
application of CRM as very helpful to the business. Integration of a CRM programme
through all subsidiaries under the Pepsi brand is one proposition that will certainly enhance
the framework. This will encourage the company and customers to further communicate and
see where changes in interaction can be made, as well as to assess the customers' overall
profitability. We also feel the CRM application can be used to develop future
marketing campaigns designed to meet the needs and desires of customers in specific areas.
Other than these minor changes, we feel that the present CRM application is very promising
for Pepsi. We also agree that the CRM application can be used to build potential marketing
strategies built in particular areas to meet the needs and expectations of customers. Other than
OtherWe feel that the new CRM application is very promising for Pepsi due to these minor
changes.
References
Presentation/partha.chatterjee004-850421-customer-relationship-management-for-pepsico-
inc/. (2014). Retrieved from authorstream:
http://http://www.authorstream.com/Presentation/partha.chatterjee004-850421-
customer-relationship-management-for-pepsico-inc/
hameedrehman96. (2017, april 12). hameedrehman96/management-information-system-of-
pepsico. Retrieved from slideshare:
https://www.slideshare.net/hameedrehman96/management-information-system-of-
pepsico
KinshukKalia. (2011, february 26). pepsico-information-systems. Retrieved from slideshare:
https://www.slideshare.net/KinshukKalia/pepsico-information-systems
PepsiCo Drinks Up MySAP. (2004, june 10). Retrieved from technewsworld:
https://www.technewsworld.com/story/34379.html
Ramaj, A. (2015). Customer Relationship Management, Customer Satisfaction and Loyalty .
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