Digital Twins, new to the Supply Chain
The world is changing fasts and for the best! The use of Digital Twin on past years included circuits, as it was in construction, plumbing, distribution centres, simulations, dental treatments, pilots on flights simulations, transport of passengers, and much more.
Supply Chain (SC) world is just discovering this concept, developing those old technologies to the level of the detailed-advance line-of-attack. The SC, considered to be a complex-dynamic-human machine methodology is where hard and software blend.
Contemporary technology with powerful-virtual integration to the cloud, take us to more excellent representations of the SC, creating an operational Digital Twin useful for decision- making.
Important considerations to build a Digital Twin
- To represent the SC at the highest decision and the ability to keep the representation up-dated as the world keeps changing.
- There is a requirement for a digital platform encompassing comprehensive internally- consistent data model for the entire value chain, including suppliers and customers.
- This platform should allow the sharing of such data with numerous operation procedures, both in-house and out, to maintain the Digital Twin active and robust.
- If you are a manufacturer, your Digital Twin needs to agree with the reality of the company framework and the shifting business drivers.
- It allows future “what-if scenarios.” The Digital Twin should not just stand for the current state of the SC, but also for its future. It should facilitate the complete assessment of strategies and the evaluation of strategic alternatives of a SC, e.g. strategic sourcing, network outlines, transportation purchasing, seasonal previously-built options, pre-built seasonal and assortment choices, etc.
- It facilitates a portrayal of operational-processes. The Digital Twin should make possible the preservation of the enterprise regulations and the constraints for operational decisions, e.g. service levels, fulfilment priorities, forecast accuracy, replenishment/build frequencies, etc.
- A feasible Digital Twin should facilitate a horizontal-alignment decision all through the supply, the procurement, manufacturing operation, the inventory, demand fulfilment, production, and transportation as well, tied to a financial value originated in the group, e.g. Total Cost to Serve, Total Profit, etc.
- While assessing the effect of a demand variation on the material conditions for your industry the following week, or the transportation volume you will require.
- Backing vertical alignment crosswise several time-settings. A Digital Twin should promote strategic and tactical options to impact the operational decision-making in a corporation, sustaining the vertical alignment all through numerous timeframes.
Digital Twin should reveal an infrastructure adjustment both instantly or premeditated, relating the approaches to go over your strategies and to carry on your plans.
Common uses of Digital Twins
An extraordinary Digital Twin should make it possible the design of a global-distribution network by using multiple scenarios, downsising your logistic expenses once a year, improving your flow-pathways seasonally from your sellers to your point-of-sale, assessing your inventory financing- goals regularly, and re-charging the network daily, whilst maintaining orchestrated all the SC decisions, tactics, strategy, and operational proportions.
Further comments: Digital Twin is still a flourishing-strong technology, with its backing linked to the source data coming from numerous systems. The horizontal alignment of decisions around a total Cost to Serve (CTS) approach is worth the effort, representing constant and important savings each and in the coming years.
Dave Food