PepsiCo Demonstrates How Digital Twins Deliver Quantifiable Benefits

PepsiCo shows what’s possible when digital twins and AI are applied to real-world supply chain and facility operations.

Jan 15, 2026

Has your company developed a digital twin of one or more of its supply chain processes or operations?

We asked members of our Indago supply chain research community that question in February 2020 — almost five years ago, and just before supply chains came to a halt due to the COVID pandemic. At the time, 74% of respondents — supply chain and logistics executives from manufacturing, retail, and distribution companies — said they were not using supply chain digital twins (see report for full results).

I recalled this survey when I saw PepsiCo’s announcement last week that it had entered into “a multi-year collaboration with Siemens and NVIDIA to transform plant and supply chain operations through advanced digital twin technology and AI.” Here are some details from the press release:

How Big is the “Zombie Inventory” Problem?

For years, companies shifted from Just-in-Time to Just-in-Case, stocking up to survive disruption. Now demand has leveled off, but many warehouses are still packed with slow-moving, no-longer-needed items. This “Zombie Inventory” ties up space, working capital, and attention. This survey sought to understand how big this problem is across the industry.

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