Yongsang You’s Message
Passing on the torch
Another year, another hard-fought victory, I must say.
Our 2018 Annual and Sustainability Report, Win as One, gained recognition and approval from local and international award-giving bodies. This proves to us that we are on the right track on our sustainability journey. In the process of making the report, we were able to identify the strengths of our programs and initiatives, as well as how we can further improve our sustainability play. We applied what we learned, and our biggest accomplishment is how we were able to strategically align with our whole workforce to overcome hurdles and play to our strengths to Win the Game.
Changes and challenges
The year 2019 has been a year of significant changes for PCPPI that influenced our operations. One would be a change in management starting with the resignation of Samudra Bhattacharya, who was president of our company since 2017. His resignation affected ongoing internal programs and whether we should continue them; this and other high-level questions were resolved when our new president, Mr. Frederick D. Ong, took the leadership position in February 2020.
Another change in 2019 was our renewed focus on our beverage line, which led to the closure of our snacks production line in Cabuyao, Laguna. From 2020 onwards, we will leverage and renew our focus on our beverage line, which has been our core business for 70 years. Snacks will still be available in the Philippine market via importation from PepsiCo.
These changes, naturally, had an impact on our financial performance for the year. Notably, in 2019, we were able to start adjusting from the impact the sugar tax had on the Company and still remain competitive in the beverage industry.
Great to be Pepsi
We continued with our ‘Great to be Pepsi’ internal campaign which promotes PCPPI as a great place to work, bond, and grow. The campaign aimed to bolster the employees’ spirit by giving positive reviews on performance wins and recognizing outstanding employees who exemplified the P.E.P.S.I. values. PCPPI is a family—and we reinforced that sense of togetherness by assuring our employees of their place in the Company.
Rather than letting go of the employees affected by the snack plant’s closure, we decided to review their capabilities and relocated them accordingly. For those who did not wish to be relocated and would rather pursue another line of work, we provided the option of leaving PCPPI with the attendant separation benefits. Majority of our employees, however, stayed with us and were deployed to our head office in Muntinlupa, STRO, and Pampanga. As we conducted Resource Conservation (ReCon) trainings per plant, we were also able to address and mitigate another separate attrition issue of improper work turnover from predecessors.
Optimized work systems
In 2019, we also re-launched our business value chain in order to clearly show our employees the flow of work in the Company, the importance of each function in correlation with one another, and the impact—the value created
and distributed—by our operations.
We established the Strategic Supply Chain and Operations (SSCO) function who manages the integrated supply chain model we adopted. This integrated supply chain model enabled us to realign the roles and responsibilities of our business units for a more strategic and integrated approach to our supply chain processes.
A sustainability booster
Sustainability practice has been given a boost, particularly with the Sustainability Task Force coaching the various business units in program implementation. With our 2018 performance as baseline figure, we have also aligned our internal targets with the PepsiCo 2025 vision in further reducing our fuel and electricity usage by 20 percent; reducing water usage by 25 percent; and reducing virgin plastic content in our plastic packaging by
Given our optimization efforts, the emphasis on collaboration, and our Great to be Pepsi program, PCPPI is now experiencing a greater sense of camaraderie. This is evident in more employees signing on for our corporate social engagements. With the help of the Sustainability Task Force and Bukluran Councils, 495 employee-volunteers participated in the Brigada Eskwela program and 364 volunteers participated in the International Coastal Cleanup. We are aiming for more nationwide participation from employees, across all our plants, in order to achieve greater impact with our sustainability programs.
Creating a strategic course of action, along with coordinating the whole workforce in fulfilling our objectives for 2019 and the years to come, have been an achievement made possible by everyone at PCPPI. A strong, unified workforce, our ongoing and future programs and initiatives for better operations efficiency is what I pass on to the successor of my role, Mr. Ong. For the years that I have worked with the Company, it’s really great to be Pepsi.