PepsiCo is leveraging AI and digital twin technologies to enhance the efficiency of its plant and warehouse operations before implementing any physical modifications. In collaboration with Nvidia and Siemens, PepsiCo has initiated an early-stage pilot to transform its supply chain operations over multiple years.

Ramon Laguarta, PepsiCo’s Chairman and CEO, emphasized the company's commitment to embedding AI throughout its operations to meet the growing demands of consumers. As part of its digital-first strategy, PepsiCo is utilizing digital twins and AI agents to collaboratively design facility layouts, specifically through Siemens’ Digital Twin Composer powered by Nvidia’s Omniverse AI toolkits.

A digital twin is a real-time virtual representation of a physical asset or system, which major companies like Amazon and Walmart already utilize for simulating operational changes. PepsiCo plans to test upgrades in its U.S. facilities and then introduce the technology globally, beginning with major markets through 2027.

By converting select U.S. manufacturing and warehouse operations into detailed 3D digital replicas, PepsiCo can establish baseline performance metrics for its supply chain. This innovative approach allows the company to identify up to 90% of potential design issues before any physical alterations, resulting in a 20% improvement in factory line throughput and a reduction of up to 15% in capital expenditures.

Athina Kanioura, PepsiCo's global chief strategy and transformation officer, highlighted the aim to create an intelligent ecosystem where plants and warehouses not only react to demand but also anticipate and adapt to it, paving the way for streamlined operations and enhanced productivity across the board.

Agentic AI in the Enterprise: Transforming Businesses with Oracle's Innovations

For years, companies primarily automated tasks that were clearly defined. However, Agentic AI is now reshaping business operations by not just answering queries but planning, reasoning, and executing actions. This sophisticated AI orchestrates complex workflows across ERP, supply chain, finance, and operations, delivering substantial benefits to manufacturers, logistics providers, and service organizations—resulting in faster cycle times, fewer errors, and improved decision-making.

Agentic AI represents a significant advancement over traditional AI. While traditional AI focuses on predicting outcomes, Agentic AI acts upon them autonomously. By leveraging large language models, it understands objectives, generates multi-step plans, and coordinates with users to automate end-to-end business processes.

Key capabilities include a robust orchestration engine that manages multi-step processes, real-time data retrieval for informed decision-making, and governance features to ensure task traceability. These capabilities effectively address the challenges of complexity and manual processes that many enterprises face today.

Oracle's strategy for Agentic AI emphasizes a unified approach, embedding AI directly within its applications, databases, and workflows. This integration not only streamlines operations but enhances security and performance, offering features like intelligent tool invocation and autonomous data handling.

Concrete applications of Oracle’s Agentic AI can be seen in sectors such as manufacturing and transportation, where businesses utilize it for contract management, procurement, financial processes, and asset management. By automating these functions, companies can significantly reduce human errors, improve workflow efficiency, and make more informed decisions.

As organizations adopt these capabilities, they are poised to transform their operations and gain a competitive edge in today’s fast-paced market. The journey continues, with further discussions on common use cases to highlight the transformative power of Agentic AI.

Lenovo Manufacturing Solutions has recently garnered three esteemed global awards: the Platinum Winner at the TITAN Business Awards for Business Technology Solutions, the Product of the Year at the BIG Awards for Business, and recognition at the Middle East Technology Excellence Awards 2025 in the AI – Manufacturing category. These accolades underscore Lenovo's commitment to enhancing manufacturing operations through AI-powered solutions.

Lenovo’s innovations are pivotal in improving production quality, increasing supply chain resilience, and modernizing industrial processes. The BIG Awards highlighted Lenovo’s capabilities in end-to-end automation, real-time data visibility, and advanced warehousing intelligence. Additionally, the TITAN Business Awards recognized Lenovo among a select group of organizations influencing global market standards.

Concrete applications of Lenovo’s solutions include a partnership with ST Logistics, where the introduction of Autonomous Mobile Robots (AMRs) significantly streamlined operations. This collaboration boosted order processing by 40%, reduced energy consumption by 30%, and enhanced workforce productivity. Similarly, for Guardian Health & Beauty, Lenovo implemented a warehouse automation program utilizing 47 autonomous robots, resulting in nearly 100% picking accuracy and a 35% efficiency improvement in warehouse operations.

In another case, Lenovo helped a leading Chinese dairy producer harness AI-powered social listening, driving customer experience enhancements and optimizing supply chain operations. These deployments illustrate the tangible benefits and efficiencies generated by integrating AI into manufacturing processes.

Lenovo plans to continue demonstrating its AI-driven solutions at upcoming global events like Lenovo Tech Day and Hannover Messe, reinforcing its vision for intelligent, human-centric manufacturing. As noted by General Manager Andy Zheng, these achievements reflect both technological leadership and the commitment to co-create solutions that benefit customers in real-world scenarios.

In this episode of And So It Flows, Tim Savage, an electrical outside sales representative at Lock Supply Co., shares his insights on the real-world applications of artificial intelligence (AI) in the distribution industry. Drawing from his extensive experience in trades like electrical, HVAC, and general contracting, Savage highlights the urgent needs contractors face for materials, answers, and alternatives. AI tools like Canals have revolutionized his workflow by minimizing the time spent on catalog searches and part number identification. Instead, AI streamlines product recognition, checks for compatibility, flags errors, and suggests alternatives, enabling Savage to respond as swiftly as contractors require.

Savage underscores that the true value of AI lies in its practical applications rather than mere automation hype. Key benefits include identifying products from images, constructing extensive material lists in real time, and confirming product availability directly in customers' offices. This increased efficiency enhances the speed and accuracy of quoting, which fosters stronger customer relationships. By providing immediate answers instead of delayed responses, Savage reinforces trust, ensuring that jobs progress smoothly and positioning distributors as integral partners in the contracting process.

Looking forward, Savage foresees AI playing a crucial role in bridging knowledge gaps within distribution organizations. By preserving institutional knowledge and accommodating customer-specific details, AI reduces reliance on individual expertise and promotes consistent team performance, even amid turnover. He assuages concerns about job displacement, suggesting that AI not only supports smarter staffing but also redirects resources to enhance service. In the near future, Savage anticipates AI becoming as ubiquitous as email, seamlessly enabling quotes, product searches, and data management for forward-thinking distributors addressing operational challenges.