PepsiCo is to standardise its global consumer goods empire on the mySAP Business Suite.
PepsiCo has not previously had a company-wide ERP system. Units the company built by acquisition, such as Frito-Lay, Tropicana and Gatorade, are still running the business applications they selected as independent companies.
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PepsiCo decided to move to one ERP system for better integration and began evaluating suppliers several months ago. SAP won the contract because of its track record and extensive history in the consumer goods market, according to spokesman Mark Dollins.
Dollins said the scope and sequence of the roll-out is still being determined.
"All we can say at this point is that we expect it to be a multiyear project," he said. Heading the initiative is PepsiCo's vice-president of enterprise systems, George Legge.
SAP will displace some of its competitors in PepsiCo's IT infrastructure - most notably, Oracle, which counts Pepsi-Cola North America, Frito-Lay and Tropicana as customers of its ERP applications.
PeopleSoft's software runs PepsiAmericas' CRM system, while Siebel Systems powers Quaker Oats' system. Also in the mix are a number of applications from smaller suppliers and a profusion of custom systems.
PepsiCo totalled $27.6bn in sales last year, from hundreds of brands within four operating divisions.
In 1999, it created the PepsiCo Business Solutions Group as a central IT organisation. Five years later, PepsiCo still has a fragmented technology infrastructure.
Stacy Cowley writes for IDG News Service