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Firstlogic Data Quality Helps PepsiAmerica Optimize its Sales and Distribution Channels

  • August 01 2004, 1:00am EDT
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PepsiAmericas, Inc. is the number-two anchor bottler in the Pepsi system, with operations in 18 states as well as numerous locations overseas. The new PepsiAmericas was formed in early 2001 when Whitman Corporation, the holding company for Pepsi-Cola General Bottlers, acquired the former PepsiAmericas and then took on its name, creating an industry powerhouse with revenues of more than $3 billion. The former PepsiAmericas was the third-largest anchor bottler in the PepsiCo system, formed in 1999 through a roll-up of Dakota Beverage Company, Delta Beverage Group and Pepsi-Cola Puerto Rico Bottling Company.

The result of this extensive M&A activity was not only the creation of a formidable market force, but also a company with a large number of disparate enterprise computer systems that made business consolidation extremely difficult. While Pepsi-Cola General Bottlers used PeopleSoft as their back office solution for accounts receivable and accounts payable, etc., it used a homegrown mainframe solution for storing master customer files. In addition, while the former PepsiAmericas had also standardized on PeopleSoft, it was still consolidating systems from its 1999 roll-up, the Dakota territories were running homegrown IBM AS/400 applications and the Delta territories ran the Descartes logistics management system. The task facing PepsiAmericas' IT organization to bring together all of this crucial disparate data was enormous.

At the same time, we were also changing our "go to market" plan, separating the sales and distribution functions. In our previous sales model, representatives were responsible for making the next sale to an account as well as handling deliveries. Our prior environment was very static; we would deliver to the same businesses on the same day, regardless of order content. We wanted to take both our sales and distribution channels to the next level, and we needed a higher quality and more robust database to enable that to happen.

We previously had a flat, very shallow customer database which really didn't give us a good overall picture of our customers. The focus was on the vending machines and distribution points, which made effective cross-selling and up-selling nearly impossible. Previously, PepsiAmericas might have had five different vending machines within a particular hotel location broken out as individual customers even though they were located at the same physical address. For example, the hotel might have a restaurant, hotel shop and snack bar that need to be serviced as well as individual vending machines.

To help with the massive task of data cleansing and consolidation, PepsiAmericas began the search for a data quality solution that could integrate into its PeopleSoft 7.53 environment, which feeds a 400GB Oracle8i database running on a 32-processor Hewlett-Packard UNIX server. After extensive due diligence, PepsiAmericas selected Firstlogic's Information Quality Suite.

The integration between Firstlogic and PeopleSoft via Firstlogic's Data Quality Link for PeopleSoft was a key factor in our selection process. As it turns out, we are using the product as much, if not more, outside our PeopleSoft environment as we continue to transition legacy systems and acquire new data sources.

PepsiAmericas is in the process of completing the successful rollout of its new environment, consisting of a computer telephony integration (CTI)-based call center dedicated to cross-selling and up-selling to its smaller accounts, with account sales managers still dedicated to personally handling the company's larger accounts. Deliveries are now handled separately.

In our new environment, we need accurate contact information for our call center as well as address information to help us optimize our delivery routes. In addition, we needed to provide a more complete, single view of our customers to our new sales organization so they could be more effective selling our wide range of products.

To accomplish this, PepsiAmericas used Firstlogic's Information Quality Suite to identify and consolidate the multiple distribution points within a particular address, enabling them to roll-up a single view of the customer.

The newly cleansed and consolidated data has enabled PepsiAmericas to not only increase targeted sales opportunities, but also generates nearly 100-percent accurate latitude and longitude code, also known as geocodes. We send our orders through a custom routing solution to provide exact coordinates for each delivery location. We need to have the proper geocode; otherwise, the routing process becomes very labor-intensive.

We originally purchased Firstlogic IQ Suite to use in our PeopleSoft environment, but it has helped us in so many ways - from data cleansing and consolidation to building a new, powerful, single view of our customers. It has been a welcome addition to our entire enterprise IT infrastructure.

Firstlogic's Information Quality Suite helps organizations create a powerful, single view of the customer by cleansing, enhancing and matching customer and business information. By implementing Firstlogic's information quality solution across the organization, companies can maximize the return on investment from customer relationship management, business intelligence and data warehousing applications.

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