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myBuy Framework Principles

    Definition

    • myBuy program is an eProcurement platform used by PepsiCo to streamline purchasing, improve compliance, and increase spend visbility within OPEX functions. 

    • It is strategic, sustainable sourcing initiative that extends our organizational capability and drives incremental productivity. 

    • myBuy productivity calculation is slightly nuanced vs the conventional calculation of P&L productivity as it doesn't always use the YoY rate improvement algorithm.

    Benefits of a myBuy Program

    • Cost savings through supplier consolidation and negotiated pricing 
    • Transparency into purchasing behavior across the organization
    • Efficiency via automation of manual procurement processes 
    • Data-driven decision-making through spend analytics
    • Compliance and control over procurement policies and budget

Productivity Calculation Principles: Two Types

    1

    If baseline exists, must use YoY rate productivity principles defined as per core productivity framework

    2

    If a baseline doesn't exist, leverage the 3-Bid average process, comparing average of 3-bids vs the awarded bid. 

    • Reduction of budget by the same amount is no longer required as a condition to recognize productivity. 

myBuy - Questions & Clarifications

myBuy is not available in certain Regions? Can we leverage 3-bid average to measure and report productivity?

In Markets with no access to myBuy, we can leverage the 3-bid framework. This exception is only allowed when YoY baseline comparison with prior year is not available.

SAP 3-bid vs myBuy 3-bid

Both myBuy and SAP 3-bids should follow the same principles of YoY productivity. It's only in cases where baseline or PY rates/ comparisons are not available, myBuy allows 3-Bid Average process i.e. comparing average of 3-bids vs the awarded bid and reporting as productivity. In a situation where no baseline exists and we do a 3-bid in SAP, should we approve productivitiy as an exception? There is no exception in the framework that allows for other platforms other than myBuy to report productivity. 

If we do multiple 3-bid rounds, which avg should be used for calculating the Productivity?

myBuy productivity should be measured on the lowest bid compared to the average of the 3 lowest bids (final round). Keep in mind this only applies if no baseline or PY comparable is available and there is a reduction of budget by the same amount of reported Tactical myBuy savings.

Rate Card Productivity 

Productivity savings against a rate card is not reportable productivity unless it meets the YoY criteria with an established PY baseline.