Systems Development: Pepsicos Frito Lay - Case Study Example

 We are explained, that Pepsico used to pay each vendor at every purchase. With Purchase to Pay, Pepsico makes monthly payments for each vendor, making the entire process less bureaucratic and easier to follow as the vendor is provided an itemized statement detailing each bill of lading, invoice number, the amount of each check, and the grand total. The systems development life cycle approach which would have been best used for Pepsico's project regards the nature of the waste that Pepsico suffers from its vendors.

By approaching the problem directly where it comes from Pepsico is approaching the problem the best way. Identifying the source of the problem allowed Pepsico to dispose of a wide range of solutions to tackle the issue. Apparently, Purchase to Pay seems to be fitting. Pepsico states that they anticipate" a savings of more than $10 million in the system's first year of operation and more than $43 million over the next three years". If we are in the situation of putting up a systems development life cycle, in the case of Pepsico it would.

e are in the situation of putting up a systems development life cycle, in the case of Pepsico it would appear that vendors would result as an issue, mainly because they are initially the major part of the problem. We would have the difficult task to identify why there are some purchases that are overcharged by some vendors and incorporate these data into the system which would result in helping Pepsico negotiate volume discounts. However, this difficult task would become increasingly difficult as we have to face the other side of the problem, which is the staff of Pepsico who couldn't originally - by a lack of knowledge, training or data - identify the issue when dealing with vendors.

In consequence, the investigation should reflect the need for Pepsico to have better communication within the purchasing department.The opportunity inside the environment would be the availability of the data to my disposition. Even though the purchasing staff may not be aware of it, I believe that there will be an important mass of data at my disposal. Also, one of the other opportunities would be financial as I could never doubt that a company such as Pepsico would not have a sufficient budget for such an operation.

On the other side, another issue apart from the vendors could be time, as we have seen, important volumes are exchanged every day. Therefore, Pepsico would need a very rapid answer and proposition to start saving money and minimize costs.I could not doubt finally, that the preliminary phase would not result in a "go" as I don't think any technical problem or incapacity would arise in the scope of the nature of the issue.Naturally, the enormous opportunity would be to initiate a system's development for Pepsico.

Not only because I would be initiating such a program. The opportunity inside the environment would be the availability of the data to my disposition. Even though the purchasing staff may not be aware of it, I believe that there will be an important mass of data at my disposal.