How PepsiCo Slashes Supply Chain Costs with Siemens AI Tech

Siemens has launched industrial metaverse technology that could revolutionise how supply chain operations are designed and managed – with PepsiCo already demonstrating significant efficiency gains

According to the industrial giant, Digital Twin Composer delivers "true industrial intelligence" by combining physical AI with comprehensive digital twin capabilities.

The technology enables organisations to simulate entire supply chain networks before committing to physical changes, potentially reducing risk and capital expenditure across warehousing, manufacturing and distribution operations.

Joe Bohman, EVP, PLM Products, Siemens Digital Industries Software, says: "The new Digital Twin Composer delivers on our vision for the industrial metaverse."

Before its general release, PepsiCo tested the technology at several US manufacturing and warehouse facilities, achieving faster design cycles, reduced capital costs and identifying up to 90% of potential operational issues before physical implementation commenced.

Building virtual supply chain environments

Digital Twin Composer creates industrial metaverse environments at scale, empowering organisations to "apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale".

Rev Lebaredian, VP of Omniverse and Simulation Technology, NVIDIA, adds: "In an era where every physical object and process will have a digital twin, Siemens' Digital Twin Composer establishes a digital thread that connects the silos of design, engineering and operations across the Siemens Xcelerator ecosystem."

Supply chain operators can integrate 2D and 3D digital twin data from Siemens' digital twin platform with physical real-time information in a "managed, secure real-time photorealistic visual scene". The environment is built using NVIDIA Omniverse libraries.

According to Siemens: "With Digital Twin Composer, companies can rapidly build and maintain this global environment, containing all aspects of their product or production data (both virtual and physical) in a secure, managed high-fidelity 3D experience, throughout the lifecycle of the product, process or facility."

The platform provides contextualised, real-time insights and intelligence, enabling companies to visualise, interact with and iterate on any product, process or facility in its real-world context before physical design or construction – whether it's a warehouse layout, distribution centre configuration or end-to-end manufacturing operation.

PepsiCo achieves supply chain efficiency gains

The partnership between PepsiCo and Siemens sees the global manufacturer convert selected US 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.

According to Siemens: "Within weeks, teams optimised 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 Siemens' Digital Twin Composer, NVIDIA Omniverse and computer vision, PepsiCo can now recreate every machine, conveyor, pallet route and operator path with physics-level accuracy. This enables AI agents to simulate, test and refine system changes before implementation.

The deployment has delivered a 20% increase in throughput on initial implementation and is driving faster design cycles, nearly 100% design validation and 10% to 15% reductions in capital expenditure by uncovering hidden capacity and validating investments in a virtual environment before physical build.

"It helps manufacturers to overcome the unprecedented challenges of mastering complexity, accelerating production, reducing costs and increasing profitability," John explains.

"Siemens and NVIDIA are partnering to help manufacturers bring the most complex products, processes and factories online faster, boost resiliency and sustainability, and continuously optimise performance."

According to Rev: "By integrating NVIDIA Omniverse libraries into Digital Twin Composer, enterprises can take advantage of physically accurate simulation across their workflows to validate their entire lifecycle – from product design to factory logistics – in the virtual world before committing a single atom to the real one."

Launched in 2026 at CES, Siemens' Digital Twin Composer is currently in early access with select customers.