Procurement Magazine June W3 | Page 136

HOW IS PEPSICO TRANSFORMING ITS SUPPLY CHAIN OPERATIONS?
• Pre-testing with accuracy: PepsiCo uses physics-level 3D digital twins to simulate and validate facility changes virtually, catching up to 90 % of issues before makingany physical modifications.
• Boosting throughput: By optimising existing facility layouts in a virtual environment within weeks, early pilots have already unlocked hidden capacity and delivered a 20 % increase in production throughout.
• Transitioning to an adaptive ecosystem: PepsiCo is shifting from slow, traditional expansions to a unified, AI-powered digital blueprint, allowing plants to actively anticipate and adapt to demand rather than just respond to it.
“ 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,” says Ramon Laguarta, Chairman and CEO of PepsiCo.
Shifting to a digital-first strategy, PepsiCo is leveraging physics-based digital twins and AI agents as co-designers to simulate, validate and optimise facility layouts before any physical build.
“ Physical industries are entering the age of AI. For companies with real-world assets, digital twins are the foundation
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