Real-time supply chain execution is a goal for the most advanced participants in the supply chain. 60% of chief supply chain officers, according to a Gartner report, expect to make faster, more informed, and more accurate choices in real-time. Real-time decision-making, on the other hand, requires a thorough understanding of the supply chain’s current state as well as a vision of many future possibilities.
The digital twin technology may help supply chains become more visible, more efficient, and more reliable in times of unpredictability and constant change. According to McKinsey, the technology may help organizations increase revenue by up to 10%, reduce time to market by up to 50%, and enhance product quality by up to 25%.
How can digital twins improve supply chain visibility?
With the ever-changing market circumstances and the increasing complexity of supply chain procedures, it is almost impossible to make timely, accurate judgments. A single choice demands supply chain managers to not only acquire and evaluate huge volumes of data but to also know how to act on the insights quicker and better than their rivals.
Digital twin technology comes into play at this point, as well. It is a very comprehensive dynamic computer simulation of the supply chain performance. Supply chain companies will spend half of their innovation budgets on AI and advanced analytics by 2024 in order to create digital twins in their supply chains. These digital twins will be able to show you how your supply chain will look in the future depending on an infinite number of factors and constraints.
For example, imagine an AI interface that gives you access to all of your processes at any level, flags all of your risks and bottlenecks, provide you with actionable insights, and lets you run any number of what-if scenarios without risking a costly error in real life. It is possible for digital twins to assist in the analysis of supply chain risks, key performance indicators (KPI), and other relevant information to recommend the best course of action in every situation.
It’s critical to stress that not every business should instantly use a digital twin to manage its supply chain. For large and medium-sized firms, I think this technology will be the most beneficial since their supply chain management operations are too complicated to operate manually or with the use of old software.
In most cases, the implementation of digital twin technology needs the participation of virtually all the teams involved in supply chain management since it must cover all of the critical activities. This might lead to a feeling of helplessness and perhaps a few blunders.
Having worked with hundreds of supply chain participants and specialists over the last 15 years, we’d like to provide three suggestions for successfully integrating this technology.
Implementing Digital Twins: Three Things to Keep in Mind
Begin by collecting information.
Data is the new oil, as you’ve already heard a thousand times. The fact that data is your basis for the effective usage of whatever technology you’ll be employing now and in the future is not unexpected.
Gather as much data as you can after determining the most important procedures that go into supply chain management. It’s possible that implementing an ERP system might be helpful in this situation since it would enable you to gather data in a standard manner and store it centrally. The more data you collect, the better the digital twin’s analysis and forecasts will be.
Pinpoint key areas you want to improve first.
With the aid of digital twins, you may enhance a broad variety of areas. But keeping track of all of them simultaneously might be a time-consuming task. As a result, I’d advise you to begin by focusing on a few key areas that, when maximized, will provide the most rewards.
Ensure that all of your systems are interconnected.
The digital twin must be able to gather and evaluate data from highly networked systems, like inventory and demand planning, in order to make accurate forecasts. Before implementing any technology, including digital twins, try to optimize your internal processes as much as possible in a non-technological manner.
It’s critical to be able to make quick judgments in the face of adversity. Perhaps the best approach is one that provides immediate data-based advice on how to improve important procedures. You may use the digital twin to help you achieve that goal—and succeed.
We at Cooperative Computing provide end-to-end supply chain management solutions offering global availability, transparency, and automated processes. Call today for more information.
