Inside Logistics

Pepsi using Dematic tech for e-commerce micro-fulfillment

System allows PepsiCo to fulfill 7.5 times more units an hour


November 16, 2020
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PURCHASE, N.Y. – PepsiCo has begun operations at a micro-fulfillment centre in Joliet, Illinois.

Long-time Pepsi technology supplier Dematic has provided the automation. According to PepsiCo, initial tests show the Dematic system allows PepsiCo to fulfill 7.5 times more units an hour than a traditional e-commerce warehouse operation.

PepsiCo is one of the first CPG brands to launch an e-commerce micro-fulfillment centre, according to Vince Jones, the company’s head of e-commerce. “The creation of this centre solidifies our commitment to making the necessary investments to continue to stay ahead of the growing online consumer demand,” he said.

Pepsi expects the fully automated micro-fulfillment model will improve Covid safety, reduce the cost of floor space and expedite the picking process to allow for faster delivery and a reduction in overall delivery costs.

The company also said that as e-commerce grows, the automated micro-fulfillment model will become a “strategic capability” to meet e-commerce demand. It plans to work with retail partners to build integrated and efficient solutions.

“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.”

New approaches to fulfillment

Dematic introduced its micro-fulfillment solutions at ProMat in 2019.

“Dematic is a differentiator in this technology, we offer fast implementation and ROI while tying into 3rd  party inventory management, warehouse, and ERP systems,” explained Matt Walker, Dematic’s voice of the customer on micro-fulfillment at the 2019 Distribution Logistics Summit.

“Most significantly, unlike competitors, Dematic’s Micro-Fulfillment solution allows businesses to own their customer data. There is no intermediary between customer shopping data and the business, allowing full visibility to valuable insights at no further cost.”

Dematic supplied PespsiCo with voice picking technology in 2009.