Digital Transformation: Empowering PepsiCo's Procurement

No one can argue the profound impact digital tools are having on procurement, allowing organisations big and small to gain competitive advantage. Perhaps this cutting-edge tech is more vital to large enterprises like PepsiCo, whose net revenue stands at US$92bn. 

With an employee base of approximately 318,000 and a portfolio of products, including Lays, Doritos, Pepsi Cola and Mountain Dew, enjoyed a billion times every day, PepsiCo needs a procurement function at the very top of its game. 

As PepsiCo looks to unlock efficiency across the board, procurement’s focus is on aligning with the wider company vision and, with that, two key pillars. 

The first concerns strategic supplier partnerships – in other words, trying to negotiate better terms and achieve savings, but also long-term partnerships that drive innovation.

The second is a strong prioritisation of sustainable solutions. PepsiCo’s procurement professionals are constantly looking for new ways to make good on the organisation’s PepsiCo Positive (pep+) environmental efforts, such as reducing greenhouse gas emissions, becoming net water positive and reducing the use of virgin plastic.

AI: Reshaping PepsiCo’s procurement

At the very heart of PepsiCo’s procurement efforts is Lauren Hymen, VP, Strategy and Transformation. 

She stresses that AI is “here to stay” and highlights the rapid rate at which the company has expanded its use, with a particular focus on spend analytics. AI is used to process vast amounts of unstructured data, enhancing spend visibility. Advanced sourcing and risk management are other areas where the technology is being applied.

"Those are the three areas we're playing with right now," Lauren adds.

"I'm personally observing AI's role growing in a few other areas that we're looking at: category management, supplier relationship management, negotiation and what I'm seeing across the board are these broader orchestration capabilities.

"I believe we haven't fully unlocked AI's potential in this domain. We’ve made great strides in leveraging AI, but there’s still so much more potential to unlock. At PepsiCo, we’re continuously exploring and refining how AI can drive meaningful impact while ensuring it aligns with our broader business goals

Aligning with business goals

Procurement is often at the very forefront when it comes to delivering business goals, particularly in the realm of cost cutting. 

"Everyone looks at procurement to help make sure that we're driving cost reduction so we can reinvest in the business,” Lauren continues. “I think everyone sees procurement like that and our Procurement organisation does a fantastic job.”

"A big passion point is building these larger strategic relationships so that we can go beyond costs and really innovate. Last year, as an example, we led our first supplier Innovate Together, which helped elevate and bring to life some of the things we're seeing with our partners and how we bring that into the business so that we affect not just the bottom line, but the top line as well. It was instrumental in driving innovation in our key areas of focus."

PepsiCo is always driving for excellence, with many thousands of people building long, successful careers. With that longevity comes both experience and know-how, as well as a desire to succeed. 

"Some of my colleagues, they’ve been around a long time, and they’ve helped bring me up to speed on PepsiCo business. This balance of sharing the past and willingness to listen to new ideas has really allowed me to make a meaningful impact in a short time," Lauren says.

"It has allowed me to highlight the global procurement impact within our organisation, demonstrating how important procurement is, and then allowing our organisation to invest in the right technologies to hopefully catapult our procurement organisation to the next level. I believe PepsiCo, with technology investments, will make procurement and PepsiCo more efficient. 

Navigating challenges in digital transformation

When asked about the most rewarding aspect of her role, Lauren's answer is immediate and authentic: "I know everyone says it, but the truth is it's the people I get to work with. I have this unique opportunity to work with the procurement team and see their deep functional expertise.

"I get to talk to a range of different people and I get to see the latest trends – what's happening in the procurement digital landscape. So, this part invigorates me as well as allows me to then bring those ideas back to PepsiCo.”

The path to procurement excellence is not without obstacles. Lauren identifies resource allocation as a primary challenge: "I think the biggest challenge – and it's not unique to PepsiCo – is balancing resources and determining where to invest. 

“PepsiCo is very strategic about where it focuses. It’s critical to prioritise those areas that are going to have the biggest impact."

Change management presents another significant hurdle.

"We're seeing technology evolve at such a rapid pace," Lauren observes.

"I want to be part of delivering that tangible impact so that PepsiCo is making the right investments, with procurement bringing those tools into their day-to-day lives so the change is embedded in how we do things.”

Partnering with Pepsi

PepsiCo’s ongoing digital transformation serves to highlight the wider, cross-functional digital procurement community – utilised by the organisation to achieve its goals.

One key partner is SpendHQ, which Lauren describes as "transformative for our procurement operations”. 

SpendHQ provides PepsiCo with comprehensive spend visibility on a global scale, allowing team members to access critical data with just a few clicks.

"This has drastically reduced the amount of time we spend on analytics, transforming what used to be a six-week process to almost instantaneous activity,” Lauren reveals.

“By leveraging their advanced analytics platform, we can help identify spending patterns, track expenditures and unlock opportunities and cost savings across all of our procurement categories.

"Spend HQ is not only enhancing our decision-making capabilities, but I would say it also optimises our sourcing strategies and maximising value from these supplier partnerships.”

Elsewhere, WNS Procurement is focused on engagement in market intelligence to support strategic sourcing activities. Over time, the relationship has evolved into a strategic partnership, delivering real-time market and category insights that drive procurement excellence.

“Building on this strong foundation, last year marked a significant milestone as we expanded our collaboration to develop an in-house should cost modelling capability,” Lauren adds.

“This initiative enhances our ability to make data-driven decisions, optimise costs and strengthen supplier negotiations. By leveraging advanced analytics and industry benchmarking, WNS Procurement helps us uncover opportunities for cost savings, value engineering, supplier diversification and improved procurement efficiency.  

“With regular reporting, interactive dashboards and customised intelligence solutions, WNS Procurement ensures seamless alignment with PepsiCo Procurement’s objectives. This partnership continues to foster a proactive, resilient and future-ready procurement strategy, enabling us to navigate market complexities with agility and confidence.” 

Achieving results

PepsiCo is focused on leveraging data at its disposal, to make decisions in real time, seeking what would improve its sourcing strategies and help it to manage costs.

One key example is in supplier risk. "It’s the same thing when we look at some of the risk tools we're evaluating. We can really see how potential supply risk is going to influence our ability to produce. 

“This helps us not only meet consumer needs, but also minimises waste, which goes back to our long-term sustainability goals."

The future of digital procurement

As Lauren looks to the future of procurement, she also reflects on how much the industry has changed over the past 10 years, shifting from a few major players to a US$6bn industry of procuretech solutions. 

She believes the industry is consolidating, impacting the role she plays in shaping PepsiCo’s operations. 

Lauren adds: “My role will be identifying where we want to play and experiment and where we want to establish long-term true partnerships. This will involve strategically selecting technologies that align with our goals, but then also saying, ‘where do we want to innovate in this space?’."

Lauren exemplifies how procurement professionals can drive meaningful change—not just in their organisations, but across the broader profession. 

By balancing technological innovation with people-focused leadership, she is helping to shape the future of digital procurement with one of the world's most recognised consumer brands.

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