Published Wednesday 19th January 2022
The difficulties faced by global supply chains have been clear to see over the last few years. The impact of the COVID pandemic has led to a wave of issues – from staff shortages to congested ports and struggles for warehouse capacity.
Supply chain management is more critical than ever before. By utilising technology like the digital twin, your organisation can achieve new levels of logistic agility and resilience.
What is Digital Twin Technology?
At its most basic form, the ‘digital twin’ is an advanced form of AI simulation that considers vast amounts of data to provide actionable business solutions.
For many years, companies have been using artificial intelligence to forecast and predict future outcomes, whether in sales, supply chains, utilities or anything else. This practice is crucial for any company that wants to evolve, especially in these changing times.
The difference between a traditional simulation and the digital twin is the latter’s level of detail. A digital twin can run simulations involving incredible amounts of data, both internal – such as producers and customer behaviours – and external – such as supply chain networks – which can help unearth problems that you might otherwise miss.
The name ‘digital twin’ comes from this idea – a detailed simulation that acts exactly like the real thing, just in a virtual environment.
Not only does the digital twin unearth complex problems, but it can also then use AI to provide potential solutions.
The Digital Twin in Practice
While the digital twin might sound like a futuristic concept, the reality is that many organisations have been using it for years. It is prevalent in Formula 1, where the Digital Twin can help unearth optimisation opportunities on the track across a range of influences.
However, recent supply chain difficulties have sped up its adoption across industries. Last year, Renault announced that they were working with Google’s digital twin technology to improve supply chain visibility.
“We aim to work with Google tools to manage both stock, improve forecasting, and eventually optimise our fulfilment.” Jean-François Salles, supply chain global vice-president at Renault Group, said.
Unilever PLC and Seimens are using digital twins to monitor the efficiency of their production facilities. DHL use digital twins to ensure their supply chains are always one step ahead of potential problems.
This technology is already available and utilised by major organisations to make tangible improvements to their logistics.
How the Digital Twin Could Shape Future Supply Chain Decisions
Many experts believe the number of logistics organisations utilising digital twins will drastically increase over the coming years as the technology becomes more accessible.
As the adoption of digital twin technology becomes more prevalent across the supply chain, so should its potential benefits.
The biggest positive that the digital twin provides is supply chain agility and resilience. The COVID pandemic has highlighted longstanding issues with global logistics. While the best simulation might struggle against a global pandemic, it might provide better answers to negate many of the impacts we’ve experienced.
Many organisations are hoping to return to a traditional, just-in-time supply chain model in the future. As supply chains become more complex, the digital twin will become a vital pillar in maintaining efficiency while allowing organisations to plan ahead of future difficulties, no matter how challenging they may appear.
Utilising emerging technologies is vital for any business that wishes to improve its efficiency. At Expense Reduction Analysts, our supply chain experts have helped many major UK businesses refine their existing practices following COVID. If you would like to discover how our cost reduction experts could help your business achieve its goals, why not get in contact with our team today?