PepsiCo Pilots Micro-Fulfillment Center

Rhea-AI Summary

PepsiCo (NASDAQ: PEP) has launched a micro-fulfillment center in Joliet, Illinois, aiming to enhance eCommerce capabilities amidst growing consumer demand. This automated facility, powered by Dematic, is designed to improve safety, reduce costs, and expedite delivery, enabling PepsiCo to process 7.5 times more units per hour compared to traditional methods. The initiative underscores PepsiCo's commitment to investing in operational efficiency and collaboration with retail partners to enhance customer experiences.

Positive

• Launch of a micro-fulfillment center in Joliet, Illinois enhances eCommerce capabilities.
• Automated facility allows processing of 7.5 times more units per hour than traditional warehouses.
• Partnership with Dematic ensures high standards in automation and efficiency.

Negative

• None.

PURCHASE, N.Y., Nov. 10, 2020 /PRNewswire/ -- PepsiCo (NASDAQ:PEP) today announced the launch of a micro-fulfillment center in Joliet, Illinois. A technology and approach quickly gaining ground with retailers, PepsiCo will use this strategic capability to meet eCommerce demand of our key customers and to gain important learnings through working with retail partners to build fully integrated and highly efficient solutions. This fully automated fulfillment approach improves COVID safety, reduces the costs of floorspace and expedites the picking process which allows for faster delivery and a reduction on overall delivery costs.

"PepsiCo is one of the first CPG brands to launch an eCommerce micro-fulfillment center, and the creation of this center solidifies our commitment to making the necessary investments to continue to stay ahead of the growing online consumer demand," said Vince Jones, Head of eCommerce, PepsiCo. "Through collaboration with our retail partners, we are creating an end to end solution that empowers us collectively to enhance our operations with applied insights.  The goal is getting PepsiCo products in consumers' hands and delivering more smiles as quickly as possible."

PepsiCo's solution is powered by leading automation supplier Dematic due to their broad experience and ability to meet PepsiCo's world-class standards.  Initial tests show the high level of automation provided on-location allows PepsiCo to service 7.5x more units an hour than a traditional ecommerce warehouse operation.

"We feel very good about where we are and continue to remain focused on our capabilities and the consumer," said Jones. "When you look at what we've accomplished in the five years since PepsiCo started its eCommerce presence, retailers understand the value we bring in augmenting their operations to deliver great consumer experiences."

About PepsiCo  

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales. Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. For more information, visit www.pepsico.com. 

 

Media Contact:
Lauren Levine
Lauren.Levine@pepsico.com  
(631)838-6805

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SOURCE PepsiCo, Inc.

FAQ

What is the purpose of PepsiCo's new micro-fulfillment center in Joliet, Illinois?

The micro-fulfillment center aims to enhance PepsiCo's eCommerce capabilities to meet growing consumer demand.

How does the Joliet micro-fulfillment center improve efficiency for PepsiCo?

The center allows PepsiCo to process 7.5 times more units per hour than traditional warehouse operations.

What technology is used in PepsiCo's micro-fulfillment center?

PepsiCo's micro-fulfillment center is powered by Dematic, a leading automation supplier.

When was PepsiCo's micro-fulfillment center announced?

The micro-fulfillment center was announced on November 10, 2020.

What are the expected benefits of the micro-fulfillment center for PepsiCo's operations?

The expected benefits include improved safety, reduced delivery costs, and faster service to consumers.