PepsiCo last week announced a multi-year collaboration with Siemens and NVIDIA to “transform plant and supply chain operations” through digital twin technology and AI.

PepsiCo said the collaboration marks a first-of-its-kind initiative for a global CPG company applying digital twins to reshape how plant and warehousing facilities are digitally simulated and tested, with early pilots already underway in the U.S. The company is shifting to a “digital-first planning strategy,” leveraging physics-based digital twins and AI agents as co-designers to simulate, validate and optimize facility layouts before any physical build.

The company can now recreate every machine, conveyor, pallet route and operator path with “physics-level accuracy,” enabling AI agents to simulate, test and refine system changes—identifying up to 90% of potential issues before any physical modifications occur.

"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 Ramon Laguarta, chairman and CEO of PepsiCo. “Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”

PepsiCo is using Siemens Digital Twin Composer, built on NVIDIA Omniverse libraries, to simulate upgrades to its facilities in the U.S. with plans to scale globally.

PepsiCo and Siemens are “digitally transforming select U.S. manufacturing and warehouse facilities by converting them into high-fidelity 3D digital twins that simulate plant operations and the end-to-end supply chain to establish a performance baseline.” The companies said that within weeks, PepsiCo can have a unified, real-time view of operations with flexibility to integrate AI-driven capabilities over time.