Digital twin
What is a digital twin in supply chain?
A digital twin is a virtual representation of a physical object, process, or system. In the context of supply chain and logistics, a digital twin replicates the entire supply chain network, including assets, facilities, products, and processes, in a digital environment. It enables real-time monitoring, analysis, and simulation of supply chain operations to improve efficiency, optimize decision-making, and mitigate risks.
Building a digital supply chain twin
A digital supply chain twin offers a holistic view of the entire supply chain ecosystem, from suppliers to customers. They are typically created by integrating data from various sources, such as sensors, IoT devices, and software systems. Once built, a supply chain digital twin can provide actionable insights into inventory levels, transportation routes, demand patterns, and production processes.
Benefits of supply chain digital twins
Digital twins offer several benefits, including enhanced visibility, predictive analytics, scenario planning, and operational efficiency. It enables supply chain professionals to identify bottlenecks, optimize resources, and respond quickly to changing market dynamics, ultimately driving improved performance and customer satisfaction.