PepsiCo drops Oracle to take SAP challenge

PepsiCo has followed rival Coca-Cola in standardising on SAP enterprise resource planning software to manage its supply chain and other business systems.

PepsiCo used to rely on Oracle systems to run its business, but in a multimillion-pound global deal it is moving its core business systems to SAP.

It is rolling out the mySAP Business Suite across the US to look after brands such as Pepsi-Cola, Tropicana juices and Quaker foods. A European roll-out is imminent, said a PepsiCo spokesman.

The company will use the SAP Netweaver integration and application platform to help to implement the mySAP Business software. PepsiCo said the new technology would streamline distribution and delivery, improve planning and forecasting, increase information transparency, and link supply chain and inventory processes with customer-facing activities.

PepsiCo president and chief financial officer Indra Nooyi said, "The adoption of a common technology platform is a significant step in the ongoing transformation of our business, which will drive efficiencies and effectiveness of our multiple operating divisions."

SAP has signed a similar standardised platform deal with Lego.

Coca-Cola, a well-established SAP user, recently started to roll out new SAP supply chain systems which would allow its delivery and logistics staff to integrate their data with back-end corporate databases using mobile devices.

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