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Enhancing PepsiCo’s logistics

As part of its expansion and automation goals, PepsiCo turned to its global leader Dematic for automated solutions. Image: Dematic.

How Dematic’s Automated Storage and Retrieval System made the difference.

PepsiCo is a global leader in convenient foods and beverages. Its products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. In 2022, PepsiCo generated more than $86 billion in net revenue, driven by a complementary product portfolio that includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.

PepsiCo aims to become a stronger, more unified company by transforming its capabilities and costs, and by using new technologies to its advantage. This includes developing and scaling the company’s core capabilities through advanced technology.


In today’s competitive business landscape, global companies like PepsiCo are constantly seeking ways to optimise their operations for increased productivity, efficiency, and accuracy.

PepsiCo’s Rojana facility in Thailand is a critical regional hub that produces a variety of products. With a growing demand for its products, PepsiCo recognised the necessity to build capacity in Thailand.

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

One of the key strategies employed by PepsiCo to support growth was the expansion of its production and logistics capacity at the Rojana site. This expansion project has been driven by the vision of a digitalised future, where automation plays a pivotal role in addressing challenges and enhancing overall operational performance.

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


As part of its expansion and automation goals, PepsiCo turned to its global partner Dematic, a global leader in providing automated solutions for materials handling and logistics.

“I’ve now worked with Dematic across two business units, firstly here in Indochina and also in Australia and New Zealand,” adds Colin. “I’ve seen Dematic really lean into providing a customised response based on the tailored needs of individual problems.”

Dematic took a strategic and modular approach to the Rojana facility system design, aligning it with PepsiCo’s current and forecasted business growth. The central feature of the solution is Dematic’s Automated Storage and Retrieval System, designed to store pallets from both on-site production and external suppliers and manufacturing plants.

“Dematic has a strong track record of successfully implementing AS/RS solutions across the Asia Pacific region and globally, catering to diverse industries and applications,” says Phamondate Rukdee, Sales Manager, Dematic Thailand. “The AS/RS is at the heart of PepsiCo’s strategy to enhance its production and logistics efficiency at the Rojana facility.

“The AS/RS aids in storing products before they are delivered to customers. This solution should achieve the highest capacity in Thailand, reaching a height of approximately 35 metres. The storage system is highly capable and efficient, even within limited space constraints.”

The AS/RS stores pallets within five aisles of double deep high bay racking, with a total of 16,520 pallet locations. The system also includes Dematic’s Warehouse Control System software to manage material flow, storage locations and to provide pallet transaction instructions to the automation. This holistic approach ensures seamless interaction between all system elements, maximising efficiency and performance.

Dematic’s commitment to quality and reliability is exemplified through the deployment of top-of-the-line equipment that works in conjunction with the AS/RS, including five Dematic RapidStore Storage and Retrieval Machines (SRMs), capable of handling loads of up to 1500 kgs. Additionally, Dematic pallet conveyors for automated pallet handling, including transporting pallets from the production area to the AS/RS, and the high bay racking, are all designed and engineered in-house by Dematic. The new warehouse also includes an area for case picking replenished automatically from the AS/RS.

Being modular, the AS/RS provides PepsiCo with the flexibility to adapt to changing needs and future market dynamics by being equipped to be incrementally scaled up.


Dematic was on the ground at the Rojana facility during implementation, testing and go live phases to ensure the success of the project, which was delivered on time for PepsiCo.

“The system was completed on schedule. We are also well supported by both domestic and international Dematic teams who are ready to quickly aid PepsiCo in terms of both hardware and software,” says Charan.

The success of any new automated system is ultimately in the hands of the system operators. That’s why training is essential for providing an understanding of not only the automated equipment, but also the procedures for ensuring its safe and efficient operation. To achieve this Dematic followed a “train the trainer” approach to helping PepsiCo develop a good working knowledge and understanding of the system, where supervisors train other employees.

“Our team really embraced the solution that we’ve put in at Rojana and they really value the investment that we’ve given them, as we’ve trained them to get new skills. That training of new skills has helped us with people retention, which is another benefit,” says Colin.

The complexity of the automation installed for PepsiCo makes it essential to have service and support in place to optimise system uptime, continuity of throughput, and production efficiency. The benefits of ongoing support include a reduction in downtime due to component failure, lower overall system maintenance costs, optimisation of system lifespan and knowing that Dematic as the system designer and builder are also available to service the system.

“Dematic takes care of PepsiCo’s AS/RS and machinery 24 hours a day, 7 days a week,” says Nipat Kummu, Service Engineer, Dematic Thailand.


The AS/RS provides fully automated high-density, high-capacity storage for pallets at high speed. With an AS/RS, stock cannot be lost or forgotten, as the system provides complete and real-time visibility of overall inventory, delivering the highest level of accuracy.

“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 system 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. The AS/RS has more than doubled our capacity and provided us with an automated solution, taking 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,” explains Colin.

The Dematic solution has delivered a multitude of benefits to PepsiCo, including:

  • Improved space efficiency: The AS/RS has more than doubled storage capacity, making the most of the available footprint, which is important in highly urbanised regions.
  • Improved productivity: Automation streamlines processes, reducing reliance on manual labour and increasing throughput.
  • Fast responsiveness: Automation allows for quick and efficient responses to customer orders and to changing demands.
  • Accuracy and tracking: Precise tracking of inventory ensures accuracy in order fulfilment.
  • Inventory security: Enhanced security measures inherent to the AS/RS protect valuable stock.
  • Modularity and scalability for expansion: The system can grow with PepsiCo’s needs.
  • Redundancy: Built-in redundancy ensures continuous operation and avoidance of costly downtime.
  • Reduced facility energy consumption: Automation helps to minimise overall warehouse energy usage.
  • Low maintenance, reliable, and locally supportable: Dematic provides ongoing local support for trouble-free operation.
  • Life cycle value: A long-term investment that continues to provide value over time.

The superior high-density storage capability of the AS/RS, which allows PepsiCo to store much more within the warehouse building cube than would be possible within a conventional warehouse environment. The Dematic solution has also removed the need for any workers to be travelling within warehouse aisles alongside materials handling equipment, which has drastically increased warehouse operator safety on the warehouse floor.

“Our first priority was safety and the AS/RS plays a crucial role in reducing the occurrence of accidents. Secondly, we were focused on efficiency gains and this was achieved through reducing the storage footprint. Thirdly, PepsiCo wanted increased accuracy and traceability of products so that the warehouse throughput could be increased,” explains Charan.

Dematic and PepsiCo have collaborated to achieve efficient results. We would like to express our gratitude to PepsiCo for enabling the successful and smooth execution of this project. This system will bolster PepsiCo’s growth, enabling it to become bigger and stronger, providing a solid foundation,” concludes Nipat.

For more information on Dematic, click here.

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