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MIS of Pepsi Co.
Transcript of MIS of Pepsi Co.
PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
They are headquartered in Purchase, New York.
Pepsi has many products such as Frito-Lay, Quaker Oats , Pepsi Bottling Group, and has continued to gain acquisitions in recent years such as Gatorade, Tropicana, Starbucks bottled Frappucino drinks, SoBe health juices, and Aquafina bottled waters.
PepsiCo owns some of the worlds most popular brands including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos .
History and Profile
It provide middle level managers with report on factory’s performance & monitoring activities & helps in predicting future performance.
Summarizes & gives reports on basic operations using data from TPS.
It enables drill down facility to check the performance level.
It is typically not very flexible system.
The system uses various modules to gain information from data.
MIS and DSS at Pepsi Co.
To support its operations, PepsiCo has 16 bottling plants in Pakistan, of which 6 are company owned and 10 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
Firms invest in information systems in order to:
Achieve operational excellence.
Develop new products & services.
Attain customer intimacy & service.
Improve decision making.
Promote competitive advantage.
Order Fulfillment Process at Pepsi Co.
This type of information is primarily used by senior managers.
It addresses strategic issues & helps in formulating long term plans.
Helps in identifying what the consumer’s taste will be in coming years?
It uses web portal interface to present the content
ESS at Pepsi Co.
ERP at Pepsi Co.
Saba Fazal Firdousi
“To be the world's premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity”
Information Systems at Pepsi Co.
Role of IS in Business
APEX LEVEL: monitor trends affecting product & sales, planning of new products, monitoring performance of competitors.
OPERATIONAL LEVEL: support market research, pricing decisions & sales performance
FUNCTIONAL LEVEL: locating potential customers, process orders, provide customer support
Management Information Systems From Functional Perspectives
MANUFACTURING & PRODUCTION SYSTEMS
APEX LEVEL: long term investment goals, long range forecasts of firm’s financial performance.
OPERATIONAL LEVEL: oversee & control firm’s financial resources.
FUNCTIONAL LEVEL: track flow of funds in firm through transactions.
APEX LEVEL: identify manpower requirements (skill, education level, number of positions)
OPERATIONAL LEVEL: monitor & analyze recruitment, allocation & compensation of employees.
FUNCTIONAL LEVEL: track recruitment & placement of employees.
Human Resource Systems
It serves operational managers in the sense that it updates them with the required activities on floor.
Its principal purpose is to answer routine questions & to track the flow of transactions through the organization.
Monitors status of internal operations & firm’s relationships with suppliers.
It is the main source of information for other systems.
TPS at Pepsi Co.
PepsiCo Inc. has selected SAP’s full MySAP Business Suite to streamline its distribution & delivery processes, improve planning & forecasting & give better visibility to its global supply chain.
PepsiCo, which manufactures, distributes & markets Frito-Lays snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices & Quaker foods, is aiming to better link its supply chain & inventory data with its customer data.
PEPSICO MAKES SURE THAT ALL OF ITS SUPPLIERS (WATER, CORN SYRUP, FOOD COLORINGS, CARBONATION, PLASTICS etc.) Come into an appropriate plant so as to keep customers satisfied with no shortages.
Too much of additional inventory is avoided which hangs up resources & cash flows.
Pepsico uses mysap business suite applications which helps in communicating with its suppliers & generate forecast of demand.
Supply Chain Management
Pepsico’s CRM application has allowed for conversion of former dissimilar sales systems into an integrated application solution, which gives a complete view of their entire consumer base.
CRM applications are used in pepsico to determine profitable customers, discover potential sales opportunities, improve customer interaction & relations.
Customer Relationship Management
THE STATION COMPUTERS ARE LINKED TO PEPSICO’S CENTRAL COMPUTER SYSTEM DAILY TO UPDATE INVENTORY, SALES & PRODUCTION INFORMATION SYSTEM.
THE MANAGEMENT BELIEVES THAT THEY SAVE ANNUALLY OVER Rs. 12,50,000 PER YEAR JUST BECAUSE OF THIS SYSTEM.
MIS helps PepsiCo's managers to recognize market trends, in respect of price, differentiation of products & timely information of market trend.
Effective marketing planning is assisted in terms of product planning, pricing, promotion & distribution.
It helps in taking quick decisions & also validating manager’s decisions.
It provides reliable & relevant information so that managers can take effective decisions at right time.
Executive support system (ESS): ability to closely monitor sales or market share.
Decision support system (DSS): reduces cost of raw materials & supplies.
Packaging Application Expert (PAX): automates production & logistical processes.
Transaction processing system (TPS): saves 30-50 thousand man hours weekly.
Management reporting system (MRS): improved product quality, less waste & gives profit-vision.
Improvements Due to IT
Direct cost of materials & services utilized in developing or obtaining computer software.
Compensation & related benefits for employees who are directly associated with the software project.
Interest costs incurred while developing internal-use computer software.
Suggestions For Pepsi Co.
Pepsi should adopt the latest buzzing technology for MIS
To maintain competitive edge they should upgrade and improve their software use. Esp SAP.
Train a larger IT staff.
Should carry their own electricity generation technique to overcome Pakistan's current energy crisis.