Managing the Financial Side of Commercial Fleets

Silva Delivers Productivity and Sustainability for PepsiCo in 2007

July 2008, by Cheryl Knight - Also by this author

Director of fleet procurement, Pete Silva has helped PepsiCo and its divisions manage its growth while keeping financials in line. The PepsiCo and bottler fleets number more than 48,000 U.S. vehicles.

His achievements earned Silva Fleet Financials’ 2008 Fleet Executive of the Year Award. Six exceptional fleet executives vied for this year’s award, presented at NAFA’s 2008 Institute & Expo May 4 in Salt Lake City.

Sponsored by The CEI Group, the award recognizes exceptional leadership by senior executives making significant contributions to fleet vehicle management. A panel of five industry judges evaluated criteria submissions, including cost-saving initiatives, policy setting, innovative programs, and cultivation of fleet manager training and management.

Silva Delivers Productivity and Sustainability Improvements

Silva’s most significant accomplishment at PepsiCo has been developing purchasing synergy between the PepsiCo operating units and its bottlers. Prior to Silva’s leadership, each operating unit executed its own purchasing contracts and processes, which led to an inconsistent vendor base and pricing structure.

By consolidating the purchasing effort, strategic alliances were developed with suppliers, and the operating units could share best practices and benefit from volume leveraged pricing.

“I had a great deal of help from key team members Ralph Schatz, who manages capital programs such as trucks, trailers, and forklifts, and Dennis Selle, who oversees expense programs such as fuels, rentals, and tires,” Silva said.

Silva’s proactive management style has led to several recent successful fleet initiatives resulting in substantial cost and time savings, including:

  • Helping produce more than $1.1 million total fleet savings for PepsiCo in 2007.
  • Testing hybrids in 2005, eventually leading the company to convert its company car fleet to hybrids.
  • Supporting Frito-Lay efforts to redesign its delivery trucks, leading to significant capital savings over the past two years.

PepsiCo is one of the world’s largest producers of convenience snacks, foods, and beverages, with revenues of more than $39 billion and more than 185,000 employees. PepsiCo owns such popular brands as Pepsi-Cola, Mountain Dew, Diet Pepsi, Lays, Doritos, Tropicana, Gatorade, and Quaker. The company’s brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending.

Silva has spent 10 of his 25 years at Frito-Lay/PepsiCo within the fleet department. He supervises seven employees; negotiates agreements with truck, car, fuel, and maintenance providers; and oversees fleet agreements for all PepsiCo entities, including Frito-Lay, Tropicana, Naked Juice, Anchor Bottlers, and a number of independent Pepsi bottlers.

 

Pete Silva

 

“I am responsible for delivering purchasing productivity and sustainability improvements for the various PepsiCo fleets,” Silva said. “We gather input on needs from the various operating companies and use that input to align capital and expense agreements for the fleet organization.”

He also manages other goods and services purchasing for the Frito-Lay Division and delivers productivity opportunities to reduce operating costs in Frito-Lay manufacturing plants and distribution centers.

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All

 

Fleet Tracking And Telematics

Todd Ewing from Fleetmatics will answer your questions and challenges

View All

 

Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All

 

Sponsored by

The U.S. General Services Administration's (GSA) mission is to use expertise to provide innovative solutions for our customers in support of their missions and by so doing, foster an effective, sustainable, and transparent government for the American people.

Read more

Blog

Market Trends

Mike Antich
Why Competent Fleet Managers Are Terminated

By Mike Antich
Over the years, I have known many competent fleet managers. But, like salmons swimming upstream, not every promising fleet manager survives the challenges and rigors of day-to-day fleet management. It is understandable when fleet managers are fired for making expensive mistakes or when caught engaging in ethical transgressions, but, sadly, many more are terminated for circumstances that are entirely avoidable.

Forces Threaten to Change Fleet From a Career to a Stepping Stone

By Mike Antich

View All

Driving Notes

Chris Brown
Hyundai Ioniq Plug-in Hybrid

By Chris Brown
The Hyundai Ioniq Plug-in Hybrid is the least expensive model on the market to offer electric-only range, while offering spirited driving performance and plenty of standard features.

2018 Range Rover Velar First Edition

By Mike Antich

View All

Nobody Asked Me, But...

Sherb Brown
Keep Realistic Fleet Expectations

By Sherb Brown
If you don’t stay on top of the latest developments in mobility, battery technology, autonomous vehicles, and telematics, you are subjecting yourself to the whims of senior management who may be making decisions based on the latest trendy news.

Fleet Management 2.0

By Sherb Brown

View All

In Memoriam: Coach's Insights

Ed Bobit
Thinking of the Newbies of the Future

By Ed Bobit
A lot has changed in the past 10-15 years, so we can only imagine this momentum will continue into the next decade-plus. How will this change impact the fleet manager of tomorrow?

Managing a Car vs. Work Truck Fleet

By Ed Bobit

View All

STORE

Up Next

More From The World's Largest Fleet Publisher