- PepsiCo has formed a partnership with Siemens and NVIDIA to use digital twin technology and AI in its operations.
- Early pilot projects are already running at U.S. plant and warehousing sites.
- The effort aims to speed capacity growth and cut costs tied to traditional expansion methods.
- Higher demand for production and distribution capacity is driving the initiative.
- PEP shares were trading about 1% lower at the time of the report; readers can get updates on Stocktwits.
On Tuesday, PepsiCo said it has partnered with Siemens and NVIDIA to deploy digital twin technology and Artificial Intelligence to improve plant and supply chain operations in the U.S. The company said early pilots are already under way at its manufacturing and warehousing facilities. The move aims to address rising demand for production and distribution capacity and to replace traditional expansion methods that the company described as slow and costly.
The pilots will digitally simulate and test plant and warehouse layouts and processes to identify efficiencies before physical changes are made. Using virtual models and AI is intended to shorten planning cycles and reduce capital and operational expenses tied to expansions. PepsiCo did not disclose timelines or financial details for broader rollouts.
Investors reacted modestly, with PEP shares trading about 1% lower at the time the company provided the update. For updates on this developing story, see Stocktwits. Read about the company’s editorial guidelines and ethics policy.
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