According to PepsiCo, its digital twin approach has already delivered a 20 percent increase in throughput on initial deployment and is driving faster design cycles, nearly 100 percent design validation and 10 to 15 percent reductions in capital expenditure (Capex) by uncovering hidden capacity and validating investments in a virtual environment. AI agents simulating system changes can identify up to 90 percent of potential issues before any physical modifications occur.
"We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry," says Athina Kanioura, CEO, Latin America, and Global Chief Strategy & Transformation Officer of PepsiCo.
At CES 2026, PepsiCo announced a multi-year collaboration with Siemens and NVIDIA to transform plant and supply chain operations through digital twin technology and AI. PepsiCo calls it a first-of-its-kind initiative for a global CPG company applying digital twins to plant and warehousing facilities, with early pilots already underway in the U.S. With demand for production and distribution capacity rising, PepsiCo says traditional expansion methods are slow and costly, limiting flexibility and scalability, so it is using AI and new digital approaches to process simulation and facility design to retool and optimize its existing physical footprint.
PepsiCo is shifting to a digital-first planning strategy, using physics-based digital twins and AI agents as co-designers to simulate, validate and optimize facility layouts before any physical build. It 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. Siemens describes Digital Twin Composer as software that builds Industrial Metaverse environments at scale, combining 2D and 3D digital twin data with real-time physical information in a scene accelerated by NVIDIA Omniverse libraries. PepsiCo and Siemens are converting select U.S. manufacturing and warehouse facilities into high-fidelity 3D digital twins that simulate plant operations and the end-to-end supply chain to establish a performance baseline. Within weeks, teams optimized and validated new configurations to boost capacity and throughput, giving PepsiCo a unified, real-time view of operations with flexibility to integrate AI-driven capabilities over time. Using Digital Twin Composer, NVIDIA Omniverse and computer vision, PepsiCo can recreate every machine, conveyor, pallet route and operator path with physics-level accuracy, enabling AI agents to simulate, test and refine system changes.