Purchase, New York-based PepsiCo has launched a micro-fulfillment center in Joliet, Illinois. A technology and approach quickly gaining ground with retailers, PepsiCo will use this strategic capability to meet e-commerce demand of key customers and to learn through working with retail partners to build fully integrated and highly efficient solutions. The fully automated fulfillment approach improves COVID-19 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 e-commerce 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 e-commerce 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 that the high level of automation provided on-location allows PepsiCo to service 7.5 times more units an hour than a traditional e-commerce warehouse operations.
“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 e-commerce presence, retailers understand the value we bring in augmenting their operations to deliver great consumer experiences.”
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.