PepsiCo Partners With Siemens, Nvidia To Advance Existing Plant, Warehousing Facilities

The company is looking to replace traditional expansion methods which are slow and costly by simulating upgrades first.

• Early pilots of the company attempting to reshape how plant and warehousing facilities are digitally simulated and tested are already underway in the U.S., the company said.
• It will now leverage digital twin technology and AI agents as co-designers to simulate, validate, and optimize facility layouts before any physical build. 

PepsiCo (PEP) on Tuesday said that it has partnered with Siemens and NVIDIA Corp. (NVDA) to improve its plant and supply chain operations with the help of digital twin technology and artificial intelligence.

Early pilots of the company attempting to reshape how plant and warehousing facilities are digitally simulated and tested are already underway in the U.S., the company said. The company plans to scale efforts globally after initial trials with its facilities in the U.S.

PepsiCo’s move comes amidst rising demand for production and distribution capacity. It is an attempt to replace traditional expansion methods which are slow and costly and yet optimize its existing physical facilities, the company said. It will now leverage digital twin technology and AI agents as co-designers to simulate, validate, and optimize facility layouts before any physical build.

How Will The Partnership Work?

PepsiCo can now recreate every machine, conveyor, pallet route and operator path with physics-level accuracy, the company said. This will enable AI agents to simulate, test, and refine system changes and identify up to 90% of potential issues before any physical modifications occur, it added.

"The scale and complexity of PepsiCo's business, from farm to shelf, is massive—and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers," said PepsiCo CEO Ramon Laguarta.

PEP shares traded 1% lower at the time of writing.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PEP stock stayed within the ‘neutral’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘high’ levels.

PEP stock has dropped 5% over the past 12 months. 

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