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Systems Development Case Study - Essay Example

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Pepsico's main business objective regarding the Purchase to Pay project was to minimize costs. We are only given the example of the volume of supplies and ingredients Pepsico's Frito Lay division purchases - huge according to the article. But this volume is provided by hundred of vendors…
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Systems Development Case Study
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Download file to see previous pages As Pepsico need to improve the control of its spending, this is the reason why Pepsico decided to implement Purchase to Pay. This way, Pepsico could more easily track and analyze purchases, negotiate important discounts on volumes and prevent the overcharged orders. Most of all, Pepsico's objective was to obtain a centralized database of vendors and to make the entire process easier. 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 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 woul...
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 to 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 are 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 of Pepsico to have a better communication within the purchase department.

The opportunity inside the environment would be the availability of the data to my disposition. Even though the purchase 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 others opportunity would be financial as I could never doubt that a company such as Pepsico would not have the 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 everyday. 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 systems development for Pepsico. Not only because I would be initiating such a program ...Download file to see next pagesRead More
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