Greg Rodden, chief operating officer of PepsiCo, recently said that the company has undergone more changes in the past three years alone than in his first 31 years at the company. This change is mainly due to the huge shift in consumer shopping habits, especially after the epidemic, people are increasingly inclined to buy food and beverages online.
To address this trend, PepsiCo is advancing its digital and automation transformation across the board, including the introduction of robotics and predictive artificial intelligence.Supply ChainThe company is two-thirds complete in its transformation, which is aimed at better forecasting demand and faster and more accurate production and delivery.
In agriculture, PepsiCo is working with companies such as CropTrak, AgroScout and Microsoft to use AI and satellite imagery to monitor crop production, analyze crop health and optimize planting decisions, which will not only help improve agricultural efficiency but also increase profits by reducing water and fertilizer use.
In the manufacturing and distribution links, the increase in automation is changing the nature of employees' work. Traditional manual labor is gradually being replaced by machines, and employees are shifting to supervising and managing these automated equipment. PepsiCo emphasizes that this shift is to meet growing demand while maintaining economic benefits.
Despite the increase in automation, PepsiCo's total workforce has grown by 20% over the past five years to 318,000. The company is working to transform "analog workers" into "digital workers" by training them to monitor and manage automated equipment.
In warehousing, PepsiCo is building “smart” facilities that use sensors and AI technology for predictive maintenance and quality control. This allows the company to identify potential problems in advance, reduce downtime, and improve operational efficiency.
These moves by PepsiCo reflect the huge changes that the food and beverage industry is facing. With changes in consumer behavior and advances in technology, large companies like PepsiCo are actively adjusting their strategies to remain competitive and meet the market needs of the new era. However, this transformation process also brings some challenges, such as changes in employee skill requirements and possible adjustments to the employment structure, which companies need to respond carefully to in their future development.