PepsiCo Partners with Siemens and NVIDIA to Deploy AI 'Digital Twins' Across Supply Chain

Food and beverage giant PepsiCo has unveiled a multi-year collaboration with technology leaders Siemens and NVIDIA. The industry-first initiative aims to fundamentally restructure PepsiCo's manufacturing and supply chain operations through the use of advanced AI and "digital twin" technology.

The partnership marks the first time a global CPG company has applied physics-based digital simulations at this scale to retool facility designs and optimise logistics before physical implementation.

The Technology: Physics-Based Simulation

PepsiCo is shifting to a "digital-first" planning strategy to address the rising demand for production capacity. The collaboration utilises Siemens Digital Twin Composer, a solution built on NVIDIA Omniverse libraries, to create high-fidelity 3D representations of manufacturing plants and warehouses.

Unlike standard computer-aided design (CAD), these digital twins are physics-compliant. They allow PepsiCo to recreate every machine, conveyor, pallet route, and operator path with real-world accuracy. This environment enables AI agents to simulate, test, and refine system changes virtually.

Operational Impact and ROI

Early pilots currently underway in the United States have already yielded significant operational metrics, validating the shift away from traditional, capital-intensive expansion methods.

Key Performance Indicators:

Risk Mitigation: The simulations have identified up to 90% of potential issues before any physical modifications occur.
Throughput: Initial deployments have delivered a 20% increase in facility throughput.
Capital Efficiency: By uncovering hidden capacity and validating investments virtually, PepsiCo reports a 10 to 15% reduction in Capital Expenditure (Capex).
Validation: Achieving nearly 100% design validation prior to construction.

Ramon Laguarta, Chairman and CEO of PepsiCo, framed the move as essential for scaling:

"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. Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight."

Jensen Huang, Founder and CEO of NVIDIA, commented on the industrial application of AI: "Physical industries are entering the age of AI. For companies with real-world assets, digital twins are the foundation of their AI journey. PepsiCo is re-architecting its operations—using physically accurate digital twins and AI to reinvent how it designs, optimises, and runs its global operations."

Roland Busch, CEO of Siemens AG, added: "The Digital Twin Composer is a cornerstone in enabling PepsiCo to transform manufacturing and warehousing. Siemens is powering the industrial AI revolution... This collaboration sets a new standard for all industries."

Future Roadmap

The initiative is spearheading a move towards what PepsiCo terms an "intelligent ecosystem." Athina Kanioura, Global Chief Strategy & Transformation Officer at PepsiCo, noted that the long-term goal is for facilities to not just respond to demand, but to "anticipate and then adapt to it."

Following the U.S. pilots, PepsiCo plans to scale the digital twin infrastructure globally across its manufacturing footprint.