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Customer Snapshot: Overview

Dr Pepper was created in 1880 at a drug-store soda fountain in Waco, Texas

Dr Pepper Snapple Group is considered by some to be the #1 flavored carbonated soft drink company in the Americas. With a combination of warehouses and store delivery centers, Dr Pepper Snapple Group employs about 19,000 people in North America and has expanded to Latin America and the Caribbean.

Dr Pepper Snapple Group

~US$6 billion

Number of Employees

Implementation Partner URL

Consumer Products

Plano, Texas, USA

Customer Website

Implementation Partners
Westernacher, HCL

Line of Business
Supply Chain

SAP Solutions
SAP Advanced Planning and Optimization, SAP Extended Warehouse Management (SAP EWM), SAP Supply Network Collaboration (SAP SNC)

Customer Snapshot: History

From the Corner Store to Every Corner of the Globe

Customer Snapshot: Business Model

More Than One Distribution Strategy

Dr Pepper Snapple Group has a combination of direct store delivery and warehouse delivery capabilities supported by 21 manufacturing centers with more than 115 distribution centers. Nearly half of DPSG's annual volume is distributed through their company-owned bottling and distribution networks. The remainder is driven through third-party/licensed bottlers and distributors. DPS Group has also expanded into Mexico and the Caribbean were they operate primarily in the carbonated mineral water, flavored carbonated drinks, bottled water and vegetable juice markets.

The Challenge

Move Everything More Efficiently
The company's top business challenges were to:
- Improve operating efficiency using replenishment pull systems
- Improve customer service, and product availability while minimizing inventory
- Streamline data consolidation, and reduce IT complexity
- Provide distributors with real-time access to order information online
- Integrate warehouse and direct store delivery distribution and products
- Strengthen route-to-market through greater operational efficiency

Enter SAP

SAP On Board

Dr Pepper Snapple Group has been running SAP for the past 10 years. The company is constantly looking at new and innovative ways for SAP to further support and grow their business.

Enter SAP: The SAP Experience

Streamline the Warehouse, Streamline the Data

Thanks to SAP, Dr Pepper Snapple Group implemented the SAP® Extended Warehouse Management (SAP EWM) application, creating an integrated, repetitive manufacturing process, including the back flushing of components, with the SAP ERP application.
SAP’s solutions optimized loading and unloading with vehicle check-in and check-out. They enabled batch management for finished products, and designed a “shuttle” between facilities within warehouse complexes. SAP also introduced travel-distance optimization and cross-docking.

Better Business

The Numbers Tell the Story

up to 20%

less cost to carry inventory, plus provide requirements in advance

up to 30%

cost avoidance from site-to-site inventory transfers by knowing customer requirements


reduction in costs associated with expediting inventory transfers


reduction in load times per warehouse


reduction in vehicle cycle times


increase in worker productivity

Better Business: Benefits

Safer, More Productive, Cost Effective

Reduction in costs associated with expediting inventory transfers


visibility for proactive production planning


order resourcing and inventory rebalancing


efficiency and reduced inventory


product introductions and discontinuations

24/7 Real-Time

online access to sales and invoices improves customer service

SAP SNC Customer Collaboration allows us to efficiently plan and execute distributor requirements without incurring additional inventory carrying costs or impacting other customers' orders. It is a great collaboration tool that lets Dr Pepper and its distributors see the real-time status of requirements and order fulfillment electronically. —Satish Seshayya, IT Director for Supply Chain, Dr Pepper Snapple Group

Better Business: Lessons Learned

Taking Advantage of New Technology

Working with SCMO2, Dr Pepper Snapple implemented the SAP® SNC Customer Collaboration rapid-deployment solution and trained all key distributors across its network. Now distributors have real-time access to order status, and Dr Pepper Snapple has better visibility into inventory and demand for more proactive production planning. The result is greater efficiency, less inventory, lower costs, and better customer service.

Consistently having our favorite drink in the cooler when you want it is a reason for everyone to raise their glass.

Better Business: Run Simple

Seeing the Whole Picture

SAP Extended Warehouse Management give us complete visibility across the warehouse, which helps our users tremendously.
—Venkat Paruchuri, Director of Supply Chain IT, Dr Pepper Snapple Group

Journey Ahead

All Warehouses Up To Speed

DPSG plans to take advantage of pre-cartonization functions for pallet building for layer picks, and to roll-out the new SAP enhancements to all their warehouses.

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