PepsiCo (PEP.US) announced at the Consumer Electronics Show (CES) that it has entered into a multi-year, industry-first collaboration agreement with Siemens and NVIDIA (NVDA.US) to deploy advanced artificial intelligence technology and physics-based digital twin technology to transform its manufacturing plants and supply chain operations. The collaboration will begin with pilot plants in the United States and gradually expand globally. This partnership leverages a new digital twin builder from Siemens, developed on the NVIDIA Omniverse platform, to create high-fidelity 3D simulations for every machine, conveyor belt, pallet path, and operator route. The platform is expected to help PepsiCo virtually design, test, and optimize facility layouts before undertaking physical modifications. Notably, the industrial metaverse environment combines 2D and 3D digital twin data with real-time operational information, enabling AI agents to identify up to 90% of potential issues in advance, accelerate design cycles, and uncover hidden capacity. Early deployments have reportedly achieved a 20% increase in throughput, near 100% design verification, and a 10% to 15% reduction in capital expenditure by validating investments in a virtual environment instead of through traditional, slower, and more costly physical expansion. Athena Kanioura, CEO of PepsiCo Latin America and Global Chief Strategy & Transformation Officer, stated, "We are deploying the first digital blueprint to reimagine how supply chains are designed, built, and scaled, which is a first for the industry." She added, "With a unified, AI-driven digital foundation, PepsiCo is building a future world: where every plant and warehouse operates as part of a single intelligent ecosystem. In this future, our facilities will not only be able to respond to demand but also anticipate and adapt to it ahead of time." Analysts view this announcement as one of the biggest highlights from a consumer company at this year's CES.
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