PepsiCo is rolling out artificial intelligence-powered digital twins across its manufacturing and supply chain operations as part of a broader effort to modernise the design and operation of its factories and warehouses.
The food and beverage giant is collaborating with Siemens and NVIDIA to create high-fidelity virtual replicas of physical facilities, enabling engineers and planners to simulate production lines, warehouse layouts, and material flows before implementing real-world changes.
The approach replaces traditional trial-and-error methods with AI-driven simulations that can test thousands of scenarios in a virtual environment. PepsiCo says the technology helps identify bottlenecks, optimise throughput, and reduce costly redesigns.
Early pilots at select U.S. facilities have already shown measurable results. According to the company, digital twin simulations have improved throughput by roughly 20% in some locations, while enabling teams to detect the majority of design issues before equipment is installed or processes are changed.
The digital twins are built using Siemens’ industrial simulation software and NVIDIA’s Omniverse platform, which provides physics-accurate 3D environments. AI models analyse production data and operational constraints to recommend layout changes, equipment placement, and workflow adjustments.
PepsiCo’s technology leadership views the initiative as a shift toward more predictive, data-driven operations. Rather than reacting to problems on the factory floor, the company aims to anticipate them virtually and make decisions with greater speed and confidence.
Beyond efficiency gains, the company expects the technology to reduce capital expenditure by uncovering unused capacity in existing facilities and minimising the need for physical rework. The initiative also aligns with PepsiCo’s broader digital transformation strategy, which includes advanced analytics, automation, and AI-assisted decision-making across its global operations.
As manufacturers face rising costs, labour constraints and demand volatility, digital twins are increasingly being seen as a way to modernise industrial operations without disrupting production. PepsiCo’s move signals how large consumer goods companies are beginning to scale the technology beyond pilot projects and into core operations.
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