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PepsiCo is testing AI and digital twin technologies to evaluate their effectiveness in simulating, validating, and optimizing factory and warehouse facilities before making physical changes.
The branded consumer goods company has begun an early-stage pilot of the technology with AI chipmaker Nvidia and global industrial technology company Siemens, according to a Jan. 6 press release. The two companies aim to reorganize PepsiCo’s factory and supply chain operations through a multi-year collaboration.
“The scale and complexity of PepsiCo’s business, from farm to shelf, is enormous, and we are embedding AI throughout our operations to better meet the growing needs of our consumers and customers,” PepsiCo Chairman and CEO Ramon Laguarta said in a press release.
As part of our digital-first planning strategyPepsiCo using Digital twin and AI agent as co-designers of facility layout, Use specifically Siemens Digital Twin Composer built on Nvidia’s Omniverse AI toolkit.
A digital twin is a real-time virtual model of a physical asset, system, or process. Companies like Amazon and Walmart use this technology to simulate the effects of changes or additions to their operations. PepsiCo plans to first simulate upgrades to its U.S. facilities and then expand globally, starting with its largest markets this year and 2027, the company said in an email to Supply Chain Dive.
“Working with Nvidia and Siemens, PepsiCo is re-engineering its operations by using physically accurate digital twins and AI to reinvent how we design, optimize and run our global operations,” said Jensen Huang, NVIDIA founder and CEO.
PepsiCo and Siemens have transformed select U.S. manufacturing and warehouse facilities for each release into high-fidelity 3D digital replicas. This transition helps set performance standards for factory operations and the end-to-end supply chain. Teams use virtual twins to validate and optimize new configurations to increase capacity and factory line throughput.
by numbers
Up to 90%
Percentage of potential plant design issues Pepsi identifies through AI agents before making physical changes
20%
Improved factory line throughput
100%
Design verification ratio provided
Up to 15%
Reduced capital expenditures
Siemens technology allows PepsiCo to recreate all machines, conveyors, pallet paths and worker paths with physics-level accuracy, according to the release. Snack manufacturers can use AI agents to simulate, test, and improve system changes, identifying up to 90% of potential problems before making physical changes on a company-by-company basis.
“PepsiCo is moving toward a world where every factory and warehouse operates as part of a single intelligent ecosystem with an integrated, AI-driven digital foundation,” said Athina Kanioura, CEO of Latin America and global chief strategy and innovation officer at PepsiCo, in a press release. “In the future, our facilities will not just respond to demand, but anticipate and adapt to it.”
