Success Story:

Food and Beverage

PepsiCo
 Success Story  > Food and Beverage  >  PepsiCo | page 2
P epsiCo offers the world’s largest
portfolio of billion-dollar food and
beverage brands. The company’s 2008 sales
At a Glance of $43 billion was built on a diverse line-up
of these brands such as Pepsi-Cola,
Mountain Dew, Gatorade, Lay’s Potato
PepsiCo Business Chips, Tropicana Beverages, Lipton Tea,
Solutions Group Quaker, Cheetos, and Ruffles.
www.pepsico.com Along with consistently strong product
innovations, PepsiCo resilient growth is
built on strategic mergers and acquisitions.
In particular, the 1965 merger between
One of world’s Pepsi-Cola and Frito-Lay, which resulted
largest food and in the creation of PepsiCo Inc., the 1998
beverage companies acquisition of Tropicana, and the 2001
acquisition of Quaker Oats Co. have
Industry: enabled the firm to deliver robust growth
Food and Beverage in the face of declining overall demand for
soft drinks.
Revenues:
$43 billion 2008 Challenges
revenues To help the firm realize the benefits of its
powerful divisions, PepsiCo established the
Employees: PepsiCo Business Solutions Group (PBSG)
198,000 worldwide in 1999 to provide shared IT services. The
$129 million IT infrastructure restructuring
Contact centers: was at the heart of the PepsiCo business
Four North American initiative known as “The Power of One.”
call centers The 1,300 IT employees in PBSG are
responsible for developing and maintaining
Key divisions: applications and systems that support of all
Pepsi-Cola, Frito-Lay, of PepsiCo’s divisions and partners.
Quaker, Tropicana While PepsiCo’s divisions maintain their
own call center environments to handle
consumer inquiries and support outbound
campaigns, PBSG provides centralized
contact center services and help desk
support for employees and key partners
worldwide. Until late 2001, PepsiCo relied
on IBM CallPath and DirectTalk to provide
IVR services for its contact centers.
“We had real problems with DirectTalk
technology as our IVR,” says Bron Dutton,
PBSG senior engineer for contact center
services. “We also had fundamental chal-
lenges in our approach to designing and
delivering contact center services. There
was a strong tendency to let the ‘tail wag
the dog’. Instead of a system that makes it
easy for the caller, we were focused on
making it easy for agents.”
Solution
Bron and his team reviewed contact center
software and systems from several vendors,
including Genesys and Cisco. “Since
Genesys bought the CallPath product from
IBM at about that time, we gave Genesys a
strong look,” Bron notes. “We liked the
flexibility and platform independence that
the Genesys software-only approach offered.
We felt it could better support our goals
and objectives, particularly given the
consolidation and standardization efforts
we are pursuing.”
Initially, PBSG installed the Genesys
Customer Interaction Management (CIM)
suite along with Genesys Voice Platform
(GVP). Later, the division also implemented
Genesys Gplus Adapters for SAP and Siebel.
This proved especially useful as PepsiCo
moved to standardize on SAP. PepsiCo
divisions also rely on Siebel and Oracle
enterprise resource planning (ERP)
solutions as well, but are migrating to SAP
In 2004, PepsiCo announced that it had
selected the mySAP Business Suite as the
primary business platform to help it unify its
operations, standardize business processes and
increase efficiency across its divisions. The
Plano, TX-based PBSG division is working
alongside SAP to implement SAP ERP,
customer relationship management (CRM)
and supply chain management solutions.
“Depending on the contact center’s need,
we provide integration with SAP, Siebel,
Peregrine and other solutions,” Dutton
explains. “In the case of SAP and Siebel,
Genesys Gplus Adapters help us provide
the data dip for our agents as a screen pop.
The Genesys Adapters really save develop-
ment time.”
 Success Story  > Food and Beverage  >  PepsiCo | page 3

Results Challenges
According to Dutton, his team has built or improved four contact centers using the > Needed flexible
Genesys framework solutions. Dutton and his team used the Genesys University online architecture to support
and in-person training to build their Genesys skills. “We don’t have to wait for a diverse operations
consultant or developer to schedule in our project,” he notes. “We save time and are
able to respond to new needs very quickly. We know how to make it work.”
> Poor customer
satisfaction with call
Dutton’s call center group is also working with the Pepsi and Frito-Lay consumer affairs center system
groups to improve their call center operations. “We’re pulling together all of their
requirements now,” Dutton notes. “That center handles upwards of 10,000 calls per
> Difficulty with legacy call
week, primarily from the 800 number on product bags and packaging.”
management systems

The four PepsiCo contact centers that currently rely on the Genesys framework
> Rapid growth demanded
include the following:
scalable platform
> No call center metrics
Technical Support. This contact center supports approximately 18,000 Frito-Lay and enforced
Pepsi route sales representatives (RSRs) throughout North America. These RSRs use
handheld computers to track, update, and order product at retail locations. “Our business
> Lack of centralized call
revolves around making sure these reps are successful,” Dutton emphasizes. Call center
center development
agents assist RSRs with their handheld systems as well as business applications and
databases they need to do their work. The 130 agents in this center handle about 40,000
calls per month. The Genesys GVP IVR identifies most callers by their PepsiCo global “Our Genesys platform gives
personnel ID number. “Initially, we used Genesys to route calls to agents who had been us the flexibility to meet a
trained to handle RSR calls for either Frito or Pepsi divisions. Later, as more agents diverse range of needs. It is
became cross-trained or developed specific new skills, we were able to easily adjust the helping us meet our mission
Genesys IVR to reflect this.” of providing centralized IT
and telephony services for
Frito-Lay Sales Accounting Group. This 50-agent contact center primarily handles all PepsiCo divisions.”
invoicing and payroll accounting issues posed by RSRs. This center handles about
10,000 calls per month. “This was one of the first groups I worked with when I took Bron Dutton
over contact center development,” Dutton says. “There were 48 minutes of recorded Senior Engineer, Call Center
prompts and eight or nine levels of rabbit holes for callers to disappear into. This did Operations
not make our reps happy when they had an issue about their payroll or an invoice. We PepsiCo Inc.
used Genesys GVP to streamline our IVR. We got it down to three layers and achieved
consistency in the terminology we use. We also added reporting through Genesys. Our
customer satisfaction scores when up by over 100 percent.”

Customer Service Operations Center. Retail chains, large restaurants and other
outlets depend on PepsiCo to supply them with beverages and snacks. This 100-agent
center handles about 30,000 calls per month from North American retail callers and
others with questions about their accounts, fountain systems or products. Genesys Gplus
Adapter for SAP provides critical integration by providing a screen pop into the SAP
Interaction Center Web Client.

Fleet Call Center. PepsiCo has one of the largest privately owned truck fleets in
North America. Between Pepsi and Frito-Lay, the company fields more than 20,000
vehicles. This is a distributed-model contact center that uses voice over IP (VOIP)
technology, Genesys GVP, and Genesys CIM to route calls received at PepsiCo’s
Purchase, NY headquarters to regional truck hubs. Each hub, typically located in a
Success Story  > Food and Beverage  >  PepsiCo | page 4

major metropolitan area, is staffed by up to 10 agents. The centers help keep loads
moving by handling reports on driver outages or trucks with mechanical problems.
Solutions
“Another group here in PBSG was having difficulty getting this call system up and > Genesys Customer
running on schedule,” Dutton explains. “They came to my team about two Interaction Management
weeks before they were to go live and needed something fast. I was trained in all (CIM) Platform
the Genesys framework components, so I was able to use Stream Manager to > Genesys Voice Platform
quickly set up a basic system in the given time. The alternative they were looking (GVP)
at was to use a Cisco solution. The cost for that was astronomical and it would > Genesys Gplus Adapter for
not have been done in time.” SAP and Siebel
Based on the successful use of the Genesys framework for a wide range of contact > Genesys University
management applications at PepsiCo, Dutton and his team feature prominently in > mySAP Business Suite
all new contact center projects. “Before, call center development was not seen as
> Smart Desk
a strategically important activity,” Dutton notes. “Thanks to our strong growth
> Avaya switch
and the success of our call center deployments, our group is now involved in the
strategy, planning and design for all call center related solutions. > Cisco Call Manager
As the team works to expand the use of Genesys within PepsiCo, Dutton has
embraced both premise-based and managed services models to accommodate The Results
different ways of doing business in various support organizations. For example,
while most conversions to Genesys have been handled internally, he worked with > Improved customer satisfaction
Genesys partner Echopass to convert the Technical Support group and three by over 100 percent
other contact center sites with a total of 150 agents to Genesys. “With Echopass, > Provides call center
we were able to take advantage of the latest Genesys technology in these centers standardization and cost
without the cost of continuing to use our aging Avaya platform,” Dutton said. efficiency
Also in process, in conjunction with move to IP telephony, three groups are
> Cut development time
being converted to Genesys as a single, virtual call center. These groups are the > Reduced IVR menu complexity
Pepsi financial shared services group, the Frito-Lay consumer affairs group, and > Adaptable skills-based routing
the vending machines group that takes restocking calls via the Genesys Voice > Flexible caller ID possible
Platform. > Reassigned or reduced headcount
“We look for ways to extend our Genesys infrastructure to meet new needs. > Fast deployment to
This is a welcome change that’s really come about over the past year or so,” accommodates dynamic
Dutton concluded. demands

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