PepsiCo is currently experimenting with AI and digital twin technologies to evaluate their effectiveness in simulating, validating, and optimizing plant and warehouse facilities before implementing any physical modifications.
The renowned consumer packaged goods company has initiated an early-stage trial of this technology in collaboration with AI chipmaker Nvidia and industrial technology company Siemens, as mentioned in a press release dated January 6th. The ultimate goal of this partnership is to revolutionize PepsiCo’s plant and supply chain operations over the course of several years.
“The scale and complexity of PepsiCo’s business, spanning from farm to shelf, is immense—and we are integrating AI across our operations to better meet the growing demands of our consumers and customers,” stated PepsiCo Chairman and CEO Ramon Laguarta in the release.
As part of its digital-first planning approach, PepsiCo is utilizing digital twins and AI agents as co-designers for facility layouts, specifically leveraging Siemens Digital Twin Composer, which is based on Nvidia’s Omniverse AI toolkits.
A digital twin is essentially a real-time virtual model of a physical asset, system, or process. Companies like Amazon and Walmart use this technology to simulate the impact of operational changes or additions. PepsiCo plans to initially simulate upgrades to its U.S. facilities before expanding globally, commencing with its major markets in the upcoming years.
“By collaborating with NVIDIA and Siemens, PepsiCo is restructuring its operations—utilizing physically precise digital twins and AI to transform how it designs, optimizes, and manages its global operations,” declared Nvidia founder and CEO Jensen Huang in the release.
PepsiCo and Siemens have transformed selected manufacturing and warehouse facilities in the U.S. into high-fidelity 3D digital replicas, establishing a performance baseline for plant operations and the entire supply chain. Teams are using the virtual twin to validate and optimize new configurations aimed at enhancing capacity and factory line throughput.
By the numbers
Up to 90%
Percentage of potential plant design issues identified by Pepsi using AI agents prior to physical alterations
20%
Enhancement in factory line throughput
100%
Design validation accuracy achieved
Up to 15%
Reduction in capital expenditures
The Siemens technology allows PepsiCo to replicate every machine, conveyor, pallet route, and operator path with precise physics-level accuracy. The snacks manufacturer can utilize AI agents to simulate, test, and refine system changes, assisting in the identification of up to 90% of potential issues before implementing any physical modifications.
“With a unified, AI-powered digital foundation, PepsiCo is progressing towards a future where every plant and warehouse functions as part of a single, intelligent ecosystem,” mentioned Athina Kanioura, CEO of Latin America and global chief strategy and transformation officer at PepsiCo. “In this envisioned future, our facilities not only respond to demand but also anticipate and adapt to it.”