With its recent partnership with Dematic to integrate automation as a core feature of its enlarged manufacturing and logistics facilities in Rojana, Thailand, PepsiCo has achieved a significant milestone in its vision of a digitalized future.

The Rojana plant of PepsiCo is an important regional center that generates a range of goods. PepsiCo realized it needed to expand its production and logistical capabilities in Thailand due to the country’s increasing demand for its products.

“Rojana is one of our biggest plants, and it also has several different product platforms. We have potato chips, we have Stax-brand chips, and we have Fry Pack in extruded products as well. Those products are made at Rojana and are not only distributed nationally across Thailand but also internationally to Vietnam and other neighboring countries,” Colin Matthews, Supply Chain Senior Director – Indochina Foods, PepsiCo, said.

Dematic collaborated closely with PepsiCo to design an automated system that would meet their needs for storage, throughput capacity, and productivity in their logistics operations. This solution would support PepsiCo’s growth while addressing space limits and labor problems. The main component of the system is an Automated Storage and Retrieval System (AS/RS) that is directly connected to the order fulfillment and production departments.

“We foresee a manpower shortage being a major challenge for our local operations in Thailand. Automation, therefore, is the perfect solution to take on this challenge, whilst also improving our facility operations across the board,” Charan Techapattaraporn, Logistics Manager, PepsiCo, mentioned.

Pallets are kept by the AS/RS in five aisles of double-deep, high-bay racking, which has 16,520 pallet placements overall. Pallets are automatically received at the end of production lines by a network of pallet conveyors and Rail-Guided Vehicles (RGVs), which transport and store them before directing them to dispatch docks or automatically refilled pick locations for full-case order picking. Dematic Warehouse Control System (WCS) software is part of the system; it manages all automation, material flow, and inventory while offering real-time tracking and transaction visibility.

“The AS/RS is at the heart of PepsiCo’s strategy to enhance its production and logistics efficiency at the Rojana facility. It provides an extremely space efficient way to store products between when they are manufactured and when they need to be assembled and despatched for delivery to customers,” Phamondate Rukdee, Sales Manager, Dematic Thailand, declared.

Pallet storage at a high density and high throughput is fully automated with the Dematic AS/RS. It offers the highest level of precision and total, real-time visibility into the entire inventory, preventing merchandise from being misplaced or forgotten. Product damage, along with the related waste and expenses, are greatly decreased when minimal manual handling is required.

“Previously we had a very manual solution that took a lot of time for people to go around and understand exactly what products we had in the warehouse. In contrast, the Dematic solution is very intuitive. It enables our team to look across the whole of the AS/RS and understand exactly where we have the stock, and they can intuitively and quickly make any adjustments they need to. The AS/RS has more than doubled our capacity and the automation takes us away from the very manual operation we had before. This allows us to supply goods to customers with greater efficiency, leaving them very satisfied,” Matthews explained.

Beyond the advantages mentioned above, the Dematic AS/RS solution also increases the safety of warehouse operators by drastically lowering the number of forklift trucks and other material handling tools like pallet movers. This has decreased equipment damage, accidents, and injuries to people.

The Dematic system can be developed to handle further expansion and adjust to changing business requirements because it is made with the future in mind.

“The partnership between PepsiCo and Dematic exemplifies the potential of automation to enhance operational efficiency and safety while also laying a solid foundation for sustained growth. Together, we have achieved great results and positioned PepsiCo for an even stronger future,” Rukdee concluded.