Recently, PepsiCo's Chief Operating Officer, Greg Creed, stated that the company has undergone more changes in the past three years than in his previous 31 years with the company. This transformation is mainly due to a significant shift in consumer shopping habits, particularly after the pandemic, with an increasing preference for online purchases of food and beverages.
To adapt to this trend, PepsiCo is fully advancing its digital and automation transformation, including the introduction of robotic technology and predictive artificial intelligence. The company reports that two-thirds of its supply chain transformation is complete. This initiative aims to better predict demand, accelerate production and distribution speeds, and improve accuracy.
In agriculture, PepsiCo is collaborating with companies like CropTrak, AgroScout, and Microsoft to monitor crop production, analyze crop health, and optimize planting decisions using AI and satellite imagery technology. This not only helps to increase agricultural efficiency but also enhances profitability by reducing water and fertilizer usage.
In the manufacturing and distribution stages, the increase in automation is changing the nature of employees' work. Traditional physical labor is gradually being replaced by machines, while employees shift to supervising and managing these automated devices. PepsiCo emphasizes that this transformation is to meet growing demands while maintaining economic efficiency.
Despite the increase in automation, PepsiCo's total workforce has grown in the past five years by 20%, reaching 318,000 people. The company is committed to transforming "analog employees" into "digital employees," training them to monitor and manage automated equipment.
In warehousing, PepsiCo is creating "smart" facilities that use sensors and AI technology for predictive maintenance and quality control. This allows the company to identify potential issues in advance, reduce downtime, and improve operational efficiency.
PepsiCo's initiatives reflect the significant changes the food and beverage industry is facing. As consumer behavior evolves and technology advances, large enterprises like PepsiCo are actively adjusting their strategies to maintain competitiveness and meet the demands of the new market era. However, this transformation process also brings challenges, such as changes in employee skill requirements and potential adjustments to employment structures, which companies need to carefully address in their future development.