The global supply chain is becoming ever increasingly complex, especially with industries working with different, multiple suppliers to support production. There remains pressure to keep efficiencies up while managing costs. To remain competitive, organizations must apply a systematic process to procurement, which will help manage its engagements with different service providers or suppliers.

Pepsi-Cola Products Philippines Inc. (PCPPI), the exclusive manufacturer of PepsiCo beverages in the country, reinforces integrity and accountability in maintaining strong relationships with its suppliers and business partners. This helps maintain the highest standards of quality in developing, producing, and distributing its range of well-loved beverages.

“We constantly seek to work with the best suppliers for the best materials. PCPPI observes the highest standards of supplier compliance supported by stringent requirements. It is in line with our commitment to our customers to only collaborate with those that meet this criteria,” said Lyn Udarbe, PCPPI’s Head of Procurement.

PCPPI values suppliers that are flexible in terms of pricing and have strong liquidity position. It is also keen in prioritizing local suppliers, as much as possible, in line with its environmental, social, and governance (ESG) priorities.

Aside from this, PCPPI makes sure the selected suppliers are compliant with its Supplier’s Code of Conduct. This agreement highlights the business and ethical standards that suppliers must adhere to and observe. These include compliance to human rights and labor standards, health, safety, quality and food safety regulations, and relevant environmental codes.

PCPPI’s ICARE value of Integrity plays a significant role in maintaining supplier relationships. As an example, accreditation cycles are held regularly to ensure that the organization maintains a validated list of suppliers at any given time.

“We ask for legal documents such as business permits to check the validity of our suppliers’ permits. Through this process, we are able to review their performance and credibility vis-à-vis their capabilities to serve our requirements. Our premium on working with integrity must also be implemented among our suppliers, and this is not up for compromise,” Udarbe added.

PCPPI observes its ICARE (Integrity and Innovation, Care and Respect, Empowerment, and Excellence) Values by implementing fairness and transparency in all of its transactions. Due diligence and conflicts-of-interest are typically overlooked in the accreditation and selection process in the interest of completing a transaction or project. To mitigate the risk of such instances, the organization implements a supplier resolution process through legal intervention and the SpeakUp program. The SpeakUp program for PCPPI employees and suppliers to raise concerns related to business conduct or breach of standards. The service is managed by a third-party partner to ensure confidentiality, and is available daily.

Building healthy supplier relationships allow for the streamlining of operations and realization of cost efficiencies over time. By implementing an organized, transparent approach, PCPPI is able to develop its products with the support of verified supply partners for Filipino customers to enjoy.