SUPPLY CHAIN
DIGITAL TWINS HELP AVERT NIGHTMARE SCENARIOS
Supply chains face an ever-increasing threat from cyberattacks , and digital-twin tech is in the frontline of the battle against the hackers
WRITTEN BY : SEAN ASHCROFT
Anticipating the supply chain is no simple task . After all , who saw the pandemic coming , or the labour shortages that issued from it ? Yet it is precisely because supply chains are so unpredictable that businesses across all sectors are turning to technology for help . Technology such as digital twins .
A digital twin is a dynamic software model of a physical thing or system that relies on sensor data to understand its state , respond to changes , improve operations and to add value .
With the advent of the Internet of Things , big data and predictive analytics the power of digital twins has become immense .
In the context of supply chains , a digital twin is a virtual replica , comprising potentially thousands of assets , warehouses , logistics and inventory positions . It offers a clear view of the risks facing complex , interconnected supply chains . This allows supply chains to be agile , because risk is identified early and disruption is minimised , or maybe even averted altogether .
Digital twin scenario planning brings agility One thing the pandemic has taught businesses is just how important it is for them to have agile supply chains . One feature of twinning tech that brings agility is its ability to allow for scenario planning , so that if disaster does strike , then decisions are based on the needs of the business , rather than on which damage limitation option is the least worst - which is still the way of things in far too many businesses .
Scenario planning can help mitigate risk in many ways . For example , by allowing a company to play out a future tariff change that would place its business model under extreme pressure , a strategic twin can help it prepare for such an eventuality , and to make long-term decisions across the end-to-end supply chain . Exploring onshoring possibilities in the supply chain is another area in which digital twins can help . For example , a company might simulate what would happen if it outsourced key elements of its supply chain from inside the M25 to deepest Kent , rural Suffolk or remote Norfolk .
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