Real-time digital twin
The company’s move towards a digital-first planning strategy uses physically-based digital twins and AI technology, which allows the tool to act as a “co-designer” that can simulate, validate and optimize the layout of a factory or warehouse facility before proceeding with building the physical location.
The partnership combines 2D and 3D digital twin data from Siemens digital twins with physical real-time information supported by the NVIDIA computer vision-enabled Omniverse library. This allows PepsiCo to recreate every machine, conveyor, pallet route, and operator path in a digital setting, allowing AI agents to simulate, test, and adjust any changes.
Atina Canioura, PepsiCo’s CEO Latin America and global chief strategy and transformation officer. CGT This approach has two elements. One concerns the new infrastructure the company plans to build (factories, warehouses, distribution centers, mixing centers, etc.), and the other concerns the optimization of existing facilities.
“Hardware and software optimizations are created in a simulated and optimized environment, including layout, spatial optimization, and navigation throughout the network,” she says. “We also have a lot of older warehouses and need to be able to accommodate spikes in demand and different types of events.”
Until now, when working with digital twins, companies could create scenarios, but the technology didn’t reflect real-time input, Kaniura said. Now, with accelerated execution speed, companies can use millions of parameters in real time to circumvent any constraints, avoid blind spots, and optimize supply chain planning.
advantage
PepsiCo has already reported results such as a 20% increase in throughput during initial deployments, shorter design cycles, nearly 100% design validation, and an apparent 10% to 15% reduction in capital expenditures due to increased capacity in a virtualized environment. The company also expects to be able to identify up to 90% of potential problems before physical fixes are required.
Once initial testing in the US is complete, the company plans to expand its efforts globally in 2026 and 2027, starting with its largest markets (US, Mexico, UK, and Western Europe).
“We are rolling out the first digital blueprint to rethink how supply chains are designed, built and scaled. This is an industry first,” Kaniura said in a statement.
“PepsiCo is building for a world where all our factories and warehouses operate as part of a single, intelligent ecosystem with an integrated, AI-powered digital foundation. In the future, our facilities will not just meet demand, they will anticipate demand and adapt to it,” she added.
