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How to Strengthen Supply Chain Operations with Digital Twin Technology

How to Strengthen Supply Chain Operations with Digital Twin Technology

It is visible that a supply chain is a goal-oriented network of processes and stock points used to deliver goods and services to customers. Breaking one aspect of the chain highly impacts the whole process for sure. That is why the supply chain industry needed a cutting-edge solution to solve this issue. That is when ‘Digital Twin’ technology entered the scenario with the best software solution and it was able to give innovative answers for almost all the concerns that had been wrapped in the supply chain industry.

In this article, we are about to explore the utilisation of ‘Digital Twin’ and how it can optimise supply chain operations with its robust functionalities and synchronisation with other systems.

What Exactly is 'Digital Twin Technology'?


A digital twin is a very accurate virtual representation of a real-world system, procedure, object, or location that can replicate and assess its real-world twin. it is a component of Industry 4.0, which is beginning to emerge as supply chain logistics and management experience a digital transformation explosion.

Information for digital twins is gathered from a variety of sources, such as IoT sensors, databases for logistics and transportation, databases for operations, and vendor data including CRM records, bills, and invoices. To further vary the data sets, some could additionally collect customer experiences like online reviews and service tickets. Companies can play around with different real-world scenarios and variables to see their effects before allowing the action to take place in real life due to this depth of knowledge.

What are the Main Challenges Faced by Supply Chains?


Having to Deal with ‘Just-in-time’ Philosophy

The ‘Just-in-time’ approach is an uphill battle that the supply chain sector is now confronting. What is it exactly? This involves carrying out everything accurately and on time for both supplies and goods. Every component must fit precisely where it belongs, much as in a puzzle. While it strives to operate efficiently and save money, even a tiny error might result in significant issues.

It depends on businesses predicting consumer demand for their goods so they can produce ‘just enough’ of them and avoid carrying a lot of additional inventory. Because of this attitude, supply networks found it more difficult to change when the Singaporean economy varied fast after the pandemic.

Limited Resources

This indicates that there is a shortage of the materials required to produce goods. Comparable to attempting to bake a cake without enough flour Due to the shortage, businesses could discover it challenging to satisfy their customers’ expectations and to maintain production levels.

Companies must think outside the box and come up with innovative ways to acquire the supplies they require to handle this. To keep everything working well and ensure that people continue to obtain the goods they desire, it is something that resembles completing a jigsaw.

Shifting Consumer Behaviour

It happens to be natural that consumers are considering their purchases differently. it is like an ever-changing target; just when businesses believe they understand what consumers want, it alters! This might be challenging since supply networks frequently change what they produce and how they distribute products.

They must continue to understand and prioritise what consumers currently demand. That is why it says supply chain management is similar to having to navigate a complicated route while balancing everyone’s needs and making sure everything arrives on time.

How Digital Twin Optimises Supply Chain Operations


Real-Time Monitoring and Analysis

Real-time monitoring and analysis is a key benefit of having a digital twin in supply chain management. This involves closely monitoring what happens to resources and products as they transit through the supply chain. It is like having an intelligent assistant that keeps track of everything and updates you on its progress.

This aids companies in identifying patterns and trends to make plans. Businesses could rapidly identify any problems or opportunities with this real-time information and make more informed decisions. It makes the supply chain operate more efficiently,  and more impactfully.

Identifying Potential Issues Before They Arise

For creating reaction plans and doing risk assessments in supply chain management, the ability to recognise and anticipate problems before they occur is extremely essential.

A supply chain digital twin can identify potential challenges in the future, allowing logistics teams to take action now or choose a different course entirely. Also, this technology makes it possible to examine a huge amount of data and prevent the recurrence of any differences that have already occurred.

Planning and Operational Improvements

Digital twin models provide you the chance to see the effects of a possible danger before you actually experience it. This involves that you can anticipate how a scenario will develop and how it will impact important metrics like savings, return on investment (ROI), and other important measurements. Through applying modelling, executives can evaluate the likelihood of unanticipated occurrences, monitor possible risks, and test out various scenarios to come up with workable solutions.

Making informed decisions to maximise results and reduce disruptions equips decision-makers with the ability to resolve confusion with more knowledge. This technology offers a prospective viewpoint, assisting in directing activities based on foresight.

Optimised Transportation

In supply chain forecasting, a digital twin can assess the impact of changes in supply and demand on physical locations and provide solutions for supplementary systems in addition to last-mile operations.

Real-time data collection enables sophisticated modelling of transportation options, including the location of frequent shortages and interruptions. Even experienced supervisors can fail to be able to notice high-level trends, which means that employing this system helps them plan resources more effectively.

Avoid Stockouts and Warehousing Issues

One of the main challenges that supply chain management teams handle is managing their inventories. More and more internet-based businesses rely on a network of closely connected warehouses to control inventory and offer quick turnaround.

With the use of supply and demand forecasts, digital twins can help balance backstock in a single warehouse or throughout the full network of warehouses.

Create a Reaction Strategy by Simulating Emergencies

Consider how this is similar to preparing for unforeseen situations ahead. Companies can mimic various crises utilising digital twins to determine how they will impact the supply chain. This makes it easier to develop prepared solutions to deal with disturbances like delays or shortages.

Having a practice play for genuine difficulties allows organisations to fine-tune their responses and lessen negative effects. In order to ensure seamless operations, increased agility, and improved customer satisfaction in the event of unanticipated crises, companies gain a proactive edge by simulating emergencies.

Estimate the Performance of Packaging

When employed in packaging, digital twin technology could virtually simulate various package materials and forms. it is similar to creating a representation to test for flaws before creating the actual thing. This allows the supply chain sector to identify problems and defects early on, helping to save money and lessen environmental damage.

Businesses are able to fix flaws due to this clever testing, saving money on potentially problematic packaging. Therefore, digital twins serve as a trial run to ensure that packaging functions properly and does not add excessive costs or harm to our environment.

Cerexio Powered Digital Twin


Cerexio Digital Twin Capabilityis enhanced with the latest, battle-tested simulation technology- boosting its sophistication and user reliance. Digital twin technology now makes it achievable to physically manipulate an interactive, dynamic virtual representation of your organisational items and to provide out-of-the-box operational and administrative efficiencies. Cerexio digital twin is enriched with robust features such as enhancing the level of interoperability between your systems, people, and machines, utilising sophisticated dashboarding for graphical representation, enabling easy access to new, useful data sources, etc. With Cerexio Digital Twin your company’s business success is just a mile away.

Tightening the Holes of Supply Chains with Industry 4.0 Technology


If you are struggling to fill out the gaps in your business operations, it is the best time for you to walk away from traditional approaches and opt for modern and straightforward technology such as Digital Twins. Our friendly reminder for you is to compare the features of the system you implement into your operations with your expectations.

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