Customers

“Archlet helped us manage and optimize complex tenders across direct and indirect spend categories. Users really enjoy working with the team and the app.”

Sinem Gürses
Global Procurement Excellence Lead
PepsiCo

Industry: Food and Beverage

Utilizing scenario optimization to drive efficiency and savings at PepsiCo

Background

The roots of PepsiCo go back to 1898. Today, it is one of the world’s leading food and beverage companies with a portfolio of iconic brands such as Pepsi-Cola, Lay’s, Doritos, Quaker, Gatorade, and many others. More than one billion times a day, customers from around the world enjoy their products. And with their commitment to do good for the planet and our communities, PepsiCo strives to win customers over with purpose.  

What was the challenge?

PepsiCo never had a tool to support sourcing analytics in a meaningful way. They executed complex souring events with a suite solution, but it lacked the flexibility and analytical capabilities they needed when it came to bid - and scenario analysis. The team resorted to manually conducting analysis in Excel. Doing so not only impacted the team’s agility, it also impacted the quality of their decisions. While they needed to incorporate aspects beyond price into their analysis, Excel made this type of holistic decision-making difficult, if not near impossible, to achieve.

What were they looking to achieve?

PepsiCo was searching for a tool that could increase the efficiency of their tender analysis while also enabling them to incorporate external data points and business requirements into their decision-making. The Procurement Excellence Team was looking for a flexible solution to complement and enhance their current suite.

The Procurement Excellence team had witnessed tools fall by the wayside because they lacked to flexibility to support sourcing teams in a natural way. Thus, it was critical that any new tool required little change management and proved valuable across categories.

What was the outcome?  

With Archlet, PepsiCo has made breakthrough improvements across its Procurement organization. They have successfully applied Archlet’s analytics and scenario optimization across 50+ direct and indirect spend categories, improving their team’s efficiency and savings.  

PepsiCo has increased the efficiency of its tender analysis by 3x, shortening the entirety of the sourcing process by roughly 30%. Time previously spent manually identifying errors and conducting analysis is now devoted to strategic tasks that drive the business forward. In an environment where speed is of the essence, the efficiency gains realized through Archlet have become a true competitive advantage for PepsiCo.  

On top of efficiency gains, PepsiCo has delivered an average of 10% on-top savings by identifying new opportunities through scenario optimization and providing detailed item-level supplier feedback. Increased visibility of their supplier inputs on a granular basis allows PepsiCo to steer their suppliers early on in the tender process and increase the competitive environment. With Archlet, PepsiCo has been able to achieve a level of visibility that was previously unattainable.  

PepsiCo especially attributes these great results to Archlet’s scenario optimization. Their teams appreciate how Archlet offers a robust system behind the analysis but is simple enough for everybody to use. With the tool, PepsiCo was able to quickly identify and calculate more scenarios that unlock new opportunities and fresh savings.

What do they appreciate most about Archlet?

“The support and the dedication of the team. It gets mentioned in almost every project. Archlet really makes sure that the user feels comfortable with the tool and that they have a positive experience. You can see the energy and soul that is put into Archlet. We can see it every time we use the tool and every time we interact with the team. The tool is great, but the people and the support are awesome.” - Global Procurement Excellence Lead  

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