Digital twin-driven adaptive supply chain
8 MINS READ
The state of today’s supply chains
Rising operational costs coupled with technological advancements and elevated customer expectations have made supply chains highly complicated.
The constant demand fluctuation due to various factors such as natural disasters and regulatory changes, to name a few, lead to unprecedented supply chain delays. Further, manual collation of stock movements and consumption pattern information from standalone systems at storage points can cause efficiency dips. Supply chain operators also find it less effective to depend on assumptions for aggregate demand and replenishment plans. Underpinning the above issues, there is a prevailing lack of visibility of real-time order status in the supply chain network. This calls for an intelligent supply chain that can adapt to handle such abnormalities and ensure resilience.
Taking on the uncertainties
An adaptive supply chain using a digital twin is the key to remain competitive and resilient.
Visualization of changing conditions, real- or semi-real-time data availability, and cognitive analytics are the three key aspects of an adaptive supply chain. A supply chain digital twin is a system that integrates with a company’s network and simulates the actual supply chain to forecast potential issues and abnormal situations and generate a sustainable future action plan. Let us look at some of the common impact vectors that affect supply chains and how this system can help:
Building an intelligent ecosystem
Supply chain digital twin helps build an ecosystem with end-to-end visibility.
It creates an inherent culture of collaboration between inbound and outbound logistics and imparts cognitive intelligence – the ability to adapt to changing business climate.
By fetching real world data and modelling the physical supply chain – across sourcing, production, manufacturing, distribution, and logistics– as a single integrated data model, a supply chain digital twin opens visibility into all operational complexities. This remains a digital decisioning platform to address needs. For instance, an avatar can be set up to enable manufacturers to:
Alternatively, as a more cost-effective method, supply chain digital twins can fit into the existing IT landscape as micro-apps to visualize specific parts of supply chains without demanding major changes to the infrastructure.
Paving the way for futuristic manufacturing
The future of supply chain digital twins will extend beyond the current boundaries of a manufacturer.
It will help global manufacturers visualize the bigger picture of the overall ecosystem to catapult economic growth. With metaverse gaining mainstream attraction and evolving rapidly, supply chain digital twins will mature alongside, to offer an immersive experience in 3D virtual spaces. It is inevitable for manufacturing organizations to gain a head-start today, to prepare for the future of phygital operations, one where the supply chain is more connected, more automated, and more intelligent.