Driving Business Results with Oracle Comprehensive Trade Management

1. Driving Business Results with Oracle Comprehensive Trade Management Bob Ashford, Massimo Zanetti BeverageBoyd Smythe, PepsiCo Victor Espinoza, Chicken of the Sea Herbert Klein, OracleLinda Peel, Oracle

2. Program Agenda • Introductions • Customer Profiles • Interactive Discussions • Q & A

3. What is Comprehensive Trade Management? Unified Reporting Layer Promotion Management Retail Execution Account Planning Category Management High Performance Infrastructure • Strategic Objective Planning • Coverage (Territory/Route) Planning • Tactical Objectives Planning • Visit Prioritization • Visit Scheduling • Visit and Activity Execution • Sales Forecasting • Promotion Tracking and Analysis • Liability Estimating and Reconciling • Funds Management • Claims Management • Financial Planning • Fund Planning • Volume Planning • Promotion Planning • Promotion Optimization • Price Planning • Calendar Optimization • Category Management • Consumer Insights • Trade Insights

4. Customer Profiles

5. Who Is PepsiCo? PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient, nutritious and affordable options in nearly every country around the world. Global Beverages Global Snacks Global Nutrition Performance Brands Scale People More than $65 billionrevenue 22billion-dollarbrands >200 countries & territories ~280,000employees

6. Our Trade Solution: TPO with Indirects This Week • Tostitos • Doritos • Ruffles • Sunchips Last Week • Fritos • Cheetos • 20 Count • Sunchips • Baked

7. How the Business Uses It

8. Future Plans & Objectives • Roll Out to New Account Teams • Continue Improving Inputs & Accuracy • Embed Fully into Processes • Develop Additional Tools

9. Bob Ashford, VP IT and Single Serve Massimo Zanetti Beverage USA • We are a privately owned vertically integrated Coffee Company • Part of a Global Coffee group based in Italy with over 100 years of coffee experience. • Serving the “At-home” and “Away from home” Coffee market with Branded and Private Label coffee products. • We grow, harvest, mill, roast, grind, package, and drink Coffee! • One of the Largest Coffee companies in North America • 7 Locations, ~1,000 MZB associates in North America • WE MAKE COFFEE!!!!

10. Distinguished Brands of Coffee and Espresso Massimo Zanetti Beverage USA

11. Massimo Zanetti Beverage USA • Corporate Brand Customers

12. TPM Solution – One system, Three functions • Promotion Planning and Management • (~3,500 annual promotions) • Deduction Management • (~12,000 annual trade based deductions ) • Integrated Forecast engine • Significant improvements in forecasting • Improved efficiency

13. Trade Promotion Management Control of discretionary spending Manage trade spending with promotional lifts and what-if analysis Trade Management • Enter and manage Promotional activity at multiple aggregation levels • Compare promotion alternatives • Determine most profitable plan • View trade-fund balances in real-time Plan the Trade Promotions with Statistical Information

14. Promotions entered by Sales reps Statistical Lift generated by Engine Promo Lift values synchronized to DM module Promo Approval process executed Promo Lifts reviewed / modified via overrides Approved Promotions set to Committed status Accruals calculated based on shipments Accruals posted to ERP (GL) DSM process executed (see DSM Process) Shipments loadedinto TPM/forecasting software from ERP Massimo Zanetti – Promotion Planning Process Promotion Planning Process • Promotions entered by Sales reps, Brokers, or Sales support team • Statistical Lift generated using the Analytic Engine • Promotion Lifts reviewed and modified by Sales reps, Sales Support, and Planning group via overrides • Promo Lift values synchronized to DM module for “Planned” promotions • Promo Approval process executed • Approved Promotions set to Committed status • Shipments loaded weekly into Demantra from ERP • Accruals calculated based on shipments • Accruals posted to ERP(GL) (Based on Accrual report) • Deduction Settlement process executed (see DSM Process)

15. Deduction Settlement Management Integrated Deduction Settlement Process Enable real-time collaboration of promotional and deduction settlement activities Deduction Settlement • Provide single system access to Deductions and Promotions allowing for an efficient settlement process • Provide real-time management of trade spending based on all phases (projection, execution, reconciliation) Settle deductions with in promotion planning system

16. Trade Spending Detailed Trade Spend Management Provide real-time views of projected and actual trade spending based on promotional activity and deduction settlement process Fund management • Budget allocation with trade-fund execution capabilities • Control of discretionary spending by product, group, customer, etc. Track trade spending based on Promotion Plans

17. Future Journey Current Focus • Advanced Forecasting and Modeling • Additional focus on AFDM • Possible additional engine tuning • Trade Promotion “Optimization” • Further organizational focus • Production Scheduling • Product sequencing • Changeover minimization Future Focus • Supply Planning • Advanced Supply Chain Planning / Constraint based optimization (ASCP) • Rapid Planning (RP)

18. Changes and Benefits Benefits • 20% increase forecast accuracy improvement • 20% increase inventory turns • 30% less total inventory on increased sales volume – while maintaining 98% customer fills rates • Stronger order fulfillment • Shorter cash-to-cash cycle times • Process change enabled by People, Organization, and technology Changes • Combined unified system for Forecasting and Promotions • Management Reviews Key Learning’s • Business and IT resource requirements • Project needs to be driven by the Business and IT • Strong leadership requirement • Future support resources should be available from the project start • Choose the right implementation partner - Project was on time and on budget

19. Summary Selection Process Workshops and presentations Requirements analysis with agreed scope Budget approval Business Challenge Very competitive market Extreme aggressive timeline • Business Case • Statistical forecast • Manage trade spending • Measure and optimize the promotional lift • Compare promotion alternatives • Replacement of an existing TPM • - (no forecasting) • Footprint • JD Edwards E1 • Demantra DM, PTP, DSM

20. Questions ?

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