PepsiCo (PEP) announced at CES that the company struck a multi-year, industry-first collaboration with Siemens and Nvidia (NVDA) to deploy advanced AI and physics-based digital twin technology to transform its manufacturing plants and supply chain operations. The collaboration will start with pilot facilities in the U.S. and scale globally over time.
The partnership uses Siemens’ new Digital Twin Composer built on the Nvidia (NVDA) Omniverse platform to create high-fidelity 3D simulations of every machine, conveyor, pallet route, and operator path. The platform is expected to help PepsiCo (PEP) virtually design, test, and optimize facility layouts before making physical changes. Notably, the industrial metaverse environments combine 2D and 3D digital twin data with real-time operational information, allowing AI agents to identify up to 90% of potential issues in advance, accelerate design cycles, and uncover hidden capacity. Early deployments have reportedly delivered a 20% increase in throughput, nearly 100% design validation, and 10–15% reductions in capital expenditure by validating investments in a virtual environment rather than through traditional, slower, and more costly physical expansion.
“We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry,” stated Athina Kanioura, CEO, Latin America, and Global Chief Strategy & Transformation Officer of PepsiCo. “With a unified, AI-powered digital foundation, PepsiCo is building toward a world where every plant and warehouse operates as part of a single, intelligent ecosystem. In this future, our facilities don’t just respond to demand; they anticipate and then adapt to it,” added Kanioura.
Analysts have highlighted the announcement as one of the biggest from a consumer company at CES this year.