AI is beginning to transform supply chains by enabling autonomous decision-making across complex, integrated environments. The ability for AI agents, for example, to monitor real-time data, e.g., demand fluctuations, inventory levels, and supplier constraints, enable them to take proactive actions like rerouting shipments or adjusting production schedules without human intervention. When done well, this leads to faster response times, improved service levels, and a truly optimized supply chain.  

Several enabling technologies are driving this transformation in the CPG space, including AI, machine learning, robotic process automation (RPA), and advanced analytics. Collectively, these tools enable companies to enhance forecasting accuracy, maximize margins, optimize supply chain operations, and respond promptly to fluctuations in raw material prices.  

Additionally, businesses must increasingly balance product configurations (such as shelf life, options, packaging, and pricing) to maximize profitability, making AI an indispensable ally in navigating these challenges. 

Case Studies: AI in CPG Supply Chains 

To illustrate the tangible impact of AI in CPG supply chains, consider the following case studies: 

Case 1 – Kimberly-Clark: AI-Powered Distribution Planning  

Kimberly-Clark, a global CPG leader, deployed an AI-powered platform across its North American operations to address “order bunching,” where order loads stacked unevenly, causing delivery delays and labor inefficiencies. The AI system automated distribution planning, connecting disparate systems to provide actionable recommendations and optimize trailer packing efficiency. Benefits included improved on-time delivery rates, enhanced visibility into underutilized trailer space, and several million dollars in reduced distribution costs, enabling greater operational efficiency and customer service improvements.  

Case 2 – Tyson Foods: AI-Driven Supply Chain Control Tower  

Tyson Foods invested in a supply chain control tower powered by AI to aggregate insights and KPIs across all supply chain disciplines. The AI system provided real-time recommendations, enabling proactive management of inventory, logistics, and demand forecasting. Benefits included improved supply chain visibility, enhanced decision-making through actionable insights, and better alignment of inventory with demand, ultimately reducing costs and improving service levels for customers.  

Case 3 – PepsiCo: AI-Driven Demand Forecasting with PepGenX  

PepsiCo leverages its internal generative AI platform, PepGenX, enhanced with Amazon Bedrock, to drive AI capabilities for demand forecasting across its global supply chain. The AI system analyzes historical sales data, market trends, and external factors like seasonal demand to predict consumer needs with high accuracy, enabling optimized production schedules. Benefits include reduced waste from overstocking, fewer stockouts during peak seasons (e.g., summer or holidays), and improved alignment of supply with demand, enhancing operational efficiency and customer satisfaction.  

Case 4 – PepsiCo: AI-Powered Warehouse Label Scanning with KoiReader  

PepsiCo collaborates with KoiReader Technologies to deploy agentic AI-powered vision systems for accurate scanning of warehouse labels and barcodes, even when partially occluded or at odd angles. The AI enhances inventory by ensuring precise tracking and reducing errors in product movement across distribution centers. Benefits include near-perfect accuracy in label scanning, faster inventory processing, and real-time operational insights, leading to improved efficiency and reduced logistics costs in PepsiCo’s supply chain.  

Final Thoughts  

Leveraging AI in CPG supply chains helps businesses streamline operations and drive efficiency, as demonstrated by transformative initiatives of several CPG leaders. If you’re looking for guidance on how to minimize manual interventions while laying the foundation for a future of touchless planning, our team has experience implementing AI-driven solutions tailored to your needs.  

Contact us today to explore how we can optimize your supply chain and position your organization at the forefront of innovation.