PAS also decided to replace its various disparate business systems with an integrated ERP package

developed by People Soft. The package assisted the company in its various functions, such as
sales, merchandising, CRM, procurement and so on. PAS also employed a mobile com putting
system using Wireless Local Area Network (WLAN) and Wireless Wide Area Network (WWAN).
Parts
1. Logistic problem: Time consumable of information input
Before embarking upon a route and after work, DAs need to place the wireless-compatible
DOS-based handheld computer into a communications cradle at the distribution center. It is
time consumable that DAs need to download the key information like order position and
product information and feed the orders in to the handheld computer as well as feed the
route accounting information into the sales system of PAS. Also PAS employees were
responsible for receiving or orders manually.
Solution: Shorten the information transmission time
By using PDT 8000 computers', which equipped with integrated barcode scanners and a
numeric keyboard, staff can input the order automatically. The ASMs also used them to feed
customer orders and order information into the sales system at the distribution centers (DCs)
fast through wireless network. The PDTs weighed less, and could process data at a higher
speed on a real-time basis, so DAs were not required to wait in queues at the DCs to
upload/down load data at the cradles. They simply transmitted the data almost instantly
through WLAN. Another advantage of using the wireless connectivity was that the cost of
maintaining the infrastructures for (cradles, cables, etc.) was significantly reduced. The DAs
were also given portable printers to print invoices.
2. Logistic Problem: poor distribution
Without the instant and accurate order details, DAs disturb the quantity of products
depending on the availability in the trucks. Some items will be less or over delivered to retail
outlets. At the end, each outlet accumulate too much dead stock in the outlet and inadequate
quantity of stock for selling hot items.
Solution: do the cross-docking delivery
By using PDT 8000 computers, the staff at the DC can do the necessary groundwork for the
next day's orders. On the next day, the DA delivered the ordered quantity of goods at the retail
outlets.
3. Logistic problem: poor delivery
They did not have a proper routing schedule or a route plan. The truck drivers simply
distributed products to the stores which fell in their routes. By using its own proprietary
technology, PAS was not able to gauge customer demand accurately. As a result, it was
frequently noticed that the trucks which returned to the warehouses, were still around onethird full. This meant unnecessarily high fuel and labor costs (for loading and un-loading of
trucks). There was also an increased risk of goods getting damaged due to frequent loading
and unloading. The inventory levels at the warehouses were also continuously increasing.
They increased 55 Stock Keeping Un its (SKUs) in the early 1990s to 300 SKUs by 2002.
Solution: The new system helped PepsiCo to sort out these issues, as the delivery quantities,
routes and schedules were clear to the DAs even prior to heading for work.

4. Solution: know customer preference and increase sales

The ASMs could view data relating to the market trends, through which they could identify
consumer buying habits and make companions of store sales various areas. They could also
give advice to the retail outlets regarding what should be done to increase sales. The ASMs
could also plan out the strategies to adopt in order to increase sales to existing customers.

ASMs also can use handheld computer make attractive sales pitches and show the latest
Pepsis ads to the customer, apart from transmitting order information.

There was no ERP system connecting these units. They had separate distribution systems
(except for a few minor regional tie-ups), even though they served the same retail outlets.
Efforts and resources were not pooled together. Analysts felt that this lacuna would affect
PepsiCos profitability adversely and it was an area which required maximum attention to
enable the company to compete effectively with its competitors.
Unsolved problem
Various PepsiCo group companies and its bottlers functioned more or less independently.
All five of PepsiCo's major units including Pepsi, Frito-Lay, Quaker Oats, Tropicana and
the bottlers invested in their own wireless technology.
PepsiCo group companies should invest the unique wireless technology for all the blotters,
so