PepsiCo announced last month an initiative with German tech conglomerate Siemens and computer chip maker NVIDIA to create “digital twins” of manufacturing plants and warehouses. The goal is to use AI-backed digital simulation technology to figure out what physical changes to plants and warehouses would best improve speed, quality, and efficiency. According to Siemens, the technology tested in one US Gatorade plant increased throughput by +20% within three months. PepsiCo estimates it could reduce capital expenditures by -10% to -15% by “uncovering hidden capacity and validating investments in a virtual environment” before construction. “This allows the company to optimize existing assets rather than investing in costly new construction,” Siemens said in a blog post about the PepsiCo partnership. BD wanted to understand how digital twins work, so we turned to Niraj Jha, who is the senior director of logistics at Niagara Bottling. His work is focused on how data, automation, and AI are reshaping beverage supply chains. Jha’s team leads large-scale optimization initiatives across Niagara’s national network. Jha has been an outspoken proponent of AI technology in manufacturing and distribution. The following interview has been condensed and edited for clarity:

The US government just released new Dietary Guidelines for Americans (DGA), updating previous recommendations issued in 2020. The guidelines, backed by the American Medical Association, American Academy of Pediatrics and the American Heart Association, offer recommendations on how Americans should eat. Federal and local governments use the guidelines to shape everything from school nutrition programs to SNAP benefits. The guidelines also influence food industry strategy, healthcare advice, and nutrition education. For the first time, the DGA has said “no amount of added sugars or non-nutritive sweeteners is recommended or considered part of a healthy or nutritious diet.” Analysis.