PepsiCo's IBP Improvement Journey: Steps Towards Sustainable and Strategic Transformation

PepsiCo is well-known for its beloved brands, but behind our favorite foods and beverages is a big and bold transformation of its strategic decision-making processes. At our recent aim10x Digital event, we sat down with Angelika Kipor, PepsiCo’s head of the Global Integrated Business Planning (IBP) program, to discuss the company’s IBP journey with o9—sharing lessons learned from initial pilots to their sustainable approach for a global rollout. Below is a quick rundown of how PepsiCo is redefining IBP and bringing it to life across global markets.

First things first…

Define IBP. 

For many companies, IBP can simply represent a means to an end in the balancing act between supply and demand. But for PepsiCo, it’s a key transformation in business decision-making, so, instead of limiting IBP to supply chain activities, the food and beverage leader sees it as a business-wide decision-making engine, giving leaders (such as general managers) the insights they need to respond to market dynamics faster and more effectively. As Angelika noted, PepsiCo’s IBP integrates upstream and downstream data, encompassing short-term, mid-term, and long-term perspectives—all essential for making forward-looking, data-driven decisions.

Start small, scale smart

PepsiCo didn’t jump straight into its largest markets; instead, they adopted a “crawl, walk, run” approach to carefully test and refine its IBP. It began with a proof of value in Benelux, followed by pilots in Iberia and Turkey. By starting with smaller markets, PepsiCo could adapt the IBP model with minimal risk, learning what works best before scaling up. The close collaboration with local teams in Iberia and Turkey allowed PepsiCo to develop adaptable playbooks and processes, laying the groundwork for broader implementation.

This pilot strategy let PepsiCo co-create and refine the IBP processes in real-world settings, ensuring the solution was both effective and adaptable for different regions. Now, with an established global template, PepsiCo is ready to bring IBP to its largest markets, including North America, armed with insights and refined processes.

Understanding (and overcoming) the larger challenges

One of the larger lessons learned during the pilot phase was the complexity of data integration. For IBP to succeed, PepsiCo needed connected data across functions—supply chain, finance, commercial, and external partners, like customers and suppliers. PepsiCo recognized that putting data front and center was crucial for success and prioritized structuring it so that it would serve all functions seamlessly.

Another essential factor was education. Because IBP can mean different things to different teams, PepsiCo invested heavily in aligning everyone’s understanding. By training teams across functions, PepsiCo ensured that all participants understood how IBP works, its purpose, and how they could best leverage it. This alignment was crucial for maximizing the effectiveness of IBP as it scaled.

Next, expand IBP into wider markets

After success in smaller markets, PepsiCo was ready to bring IBP to North America, its largest market. Why not start with the biggest market from the beginning? Testing IBP in smaller regions allowed PepsiCo to refine processes without the high stakes of a large-scale rollout. Now, PepsiCo is poised to implement IBP in North America with the confidence of established processes and a clear roadmap for accelerating value.

With one year of IBP under their belts, PepsiCo’s Iberia team has already seen a transformation in how decisions are made. IBP consolidated scattered planning processes from various functions into a single, transparent strategy. This unified approach means one set of numbers, no duplicated processes, and seamless alignment across functions. It’s a game changer—not only for supply chain efficiency but for commercial and financial performance as well. PepsiCo can now anticipate demand more effectively and ensure products reach customers quickly and efficiently, capturing demand and supporting strategic growth.

ESG is integral to today’s decision-making

PepsiCo’s commitment to sustainability is an integral part of its IBP journey. As part of its North Star vision, PepsiCo is bringing environmental, social, and governance (ESG) data—such as metrics on water usage, energy, and waste—into the IBP process. This focus on sustainability empowers PepsiCo’s general managers to make environmentally conscious decisions as part of their business planning, ultimately accelerating the company’s progress toward its sustainability targets.

By embedding sustainability into IBP, PepsiCo makes sure that strategic decisions align with both business and environmental goals. This data-driven approach ensures that as PepsiCo scales its IBP program, sustainability remains a core focus across its global operations.

The PepsiCo and o9 co-creation journey

The partnership between PepsiCo and o9 Solutions goes beyond software; it’s a collaborative journey of co-innovation. Angelika highlights that PepsiCo values the flexibility of o9’s platform, which allows for customized capabilities and knowledge-sharing. The latest developments on the o9 product roadmap—such as advanced root-cause analysis tools and knowledge digitization—give PepsiCo’s leaders actionable insights faster than ever, paving the way for more intelligent, proactive decision-making.

Summing up

PepsiCo’s journey with IBP is a continuous one. With each phase, they’re gaining new insights and refining their approach to deliver maximum value to the business. As PepsiCo continues to roll out IBP in global markets, the partnership with o9 Solutions will remain a cornerstone of this transformation. Together, they’re not just optimizing PepsiCo’s supply chain—they’re setting a new standard for connected, sustainable, and data-driven decision-making across the business.

Through its phased approach and commitment to sustainability, PepsiCo is creating a new set of standards for IBP that balances efficiency with purpose. As Angelika noted, this journey has been about building an adaptable, end-to-end decision-making framework. PepsiCo’s partnership with o9 Solutions is driving a transformation that aligns business, technology, and sustainability—a powerful example for any organization looking to build resilience and responsiveness into its operations.

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