Among PBG’s most significant competitive advantages is our ability to transform our performance through Operational Excellence. To sustain our industry leadership, we will focus on two areas:
Reconceptualizing our approach to revenue and margin management
With marketplace conditions fluctuating and consumer spending contracting, pricing and packaging have become increasingly important. PBG is working with our customers to develop strategies that increase consumer value, grow volume and facilitate revenue and margin expansion. We intend to achieve these three objectives by focusing on new packages across multi-serve cans, single serve and multi-serve plastic bottles.
Making step-function changes to our cost structure
To achieve this goal, PBG is concentrating on three objectives:
- Optimize Manufacturing Capabilities to improve production and services while improving our profit margins. We already have begun to increase our hot fill capabilities in our international markets, offer more flexible packages and expand our manufacturing platforms through lightweighting, manufacturing our own bottles, and improving capacity utilization. These activities will continue in 2009.
- Transform Warehouse Capabilities. We will achieve this by investing in, leveraging and expanding warehouse management systems, such as Advance Shipping Notification, Voice Pick and Automated Storage and Retrieval Systems.
- Maximize our Go-To-Market (GTM) capabilities and the advantage of PBG’s DSD network. Our goal is to effectively manage our selling, delivery and merchandising activities while providing the right services to the right customer at the right frequency. We must also evolve our GTM capabilities by acquiring new skills and resources to prepare for faster growth when the market improves.
PBG’s flexibility, discipline and focus are at the core of our success as a superior selling, service and distribution company, enabling our profitable growth in good times and helping to mitigate the impact of difficult economic conditions. One of PBG’s most formidable assets, Operational Excellence elevates our day-to-day work in every location and at every level of the organization. We will continue to work hard to sustain and grow our position as an industry leader – for our customers, consumers and investors.
