PBG continues to make great strides toward eliminating the issue of "out-of-stock" product - a critical issue not just for PBG, but for the entire retail industry. Half of consumers who find their preferred beverage out of stock will purchase something else. Ensuring that our customers don't run out of Pepsi products represents an enormous opportunity to capture missed sales.

We're aggressively pursuing that opportunity with an integrated planning initiative that combines the efforts of our production, warehousing, loading and sales functions to ensure our customers' shelves and coolers have the right product in the right amount, delivered at the right time. These efforts begin with forecasting based on historical sales data and projected promotional activity, which in turn leads to more efficient production scheduling, more cost-effective inventory management, and ultimately, our ability to anticipate and meet our customers' needs.

When our trucks leave the warehouse, they carry not only customer orders, but the best efforts of every PBG function along the supply chain, from initial order generation to final delivery.