Data Accuracy Pays

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Data Accuracy Pays!
Agenda

• PepsiCo and QTG Overview
• The QTG Item Sync Journey
• Case Studies
• Single case item
• Display pallet
• Cost Savings Results
• Ongoing Processes

Jeff Brazell Sr. Manager- Customer Supply Chain
Integration Capabilities Quaker, Tropicana,
Gatorade Division of PepsiCo Jeff.brazell_at_pepsi.co
m
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PepsiCo Division Breakdown
Purchase, NY
Purchase, NY
Plano, TX
Chicago, IL
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The Quaker, Tropicana, Gatorade division is
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The QTG Item Synchronization Journey
Starting in 2003 QTG began to focus on
delivering Item Sync capabilities

• Responded to industry initiatives and retailer
  mandates
• Focused on internal data cleansing in 2003
  (ongoing process)
• Went into production with our first customer
  in January 2004
• QTG currently has numerous retailers in Item
  Sync production
• Aligned specific internal business/work flow
  processes to accommodate Item Sync deliverables

Our data cleansing efforts identified latent cost
saving opportunities!
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The QTG Item Synchronization Journey
Our data cleansing efforts identified cost saving
opportunities!

• Supply chain and R D engineering teams reviewed
  theoretical case weights of major brands and
  packs prior to go live in 2004
• Identified case weight opportunities on some of
  our high volume packs
• Formed project team to analyze the potential
  internal systems ramifications for changing the
  published weights
• Identified actionable cost saving opportunities
  - the published weights were changed accordingly

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Real Benefits Of GDS Efforts. Savings Were
Identified

• Case 1- Billing weight overstated on case
• What
• Cost Improvement Projects Occurred Over Time
  Which Resulted in
• Lowered unit weight
• Lowered corrugate weight
• Reduced shrink wrap on cases
• Fill variances were too high
• Significantly affected case weight
• Product master data not updated
• Action
• Conducted In-Market DC Audit
• In conjunction with retailer initiatives
• Affected truck weight loading programs
• Change published case weights to reflect actual
  in-market field test
• Results
• Additional volume to customers/mill transit
• Substantial savings were identified

2 Additional Pallets Of Product On Plant Transport
1 Additional Pallet Of Product On Customer
Shipments
Conducting Additional Audits Creating Processes
To Do In-Market DC Audits On A Regular Basis
Across All Products
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Real Benefits Of GDS Efforts. Savings Were
Identified

• Case 2- Billing weight on miscalculated a
  pallet shipper
• What
• Case pallet weights were understated
• Shipment weights were off measurably per
  truckload
• Action
• Re-adjusted published case weight and pallet
  configuration
• Results
• Save on potential repacking costs, time, labor,
  and efficiency
• Co-packers customers shipped products using
  corrected weights, resulting in using
  significantly fewer trucks, thereby significantly
  reducing freight costs

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The QTG Item Synchronization Ongoing Process
Our focus on data cleansing represents an ongoing
effort!

• Participating in industry data accuracy studies
  and retailer pilot programs
• Conducting periodic reviews of actual case weight
  and dimensions of representative brands and packs
  
• Raising awareness of Item Sync benefits within
  the organization through periodic reviews of the
  Item Sync initiative
• Focusing on data accuracy especially on new item
  introduction (field review of case weight and
  dimensions)

PepsiCo is committed to the long-term vision of
Item/Price Synchronization!
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The QTG Item Synchronization Ongoing Process
Other areas of cost savings opportunities

• New item speed to shelf
• Administration time savings
• Sales rep
• Order administration
• Transportation savings through improved trailer
  utilization
• Back office
• General product set up and administration
• Invoice review and reconciliation
• Deduction clearing

PepsiCo is committed to the long-term vision of
Item/Price Synchronization!
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Data Accuracy Pays!
Thank You!
Jeff Brazell Sr. Manager- Customer Supply Chain
Integration Capabilities Quaker, Tropicana,
Gatorade Division of PepsiCo Jeff.brazell_at_pepsi.co
m