© BCG analysis
getting the parts delivered for assembly , and the testing phase . Digital twins are also widely used in the automotive sector precisely for this reason .”
Digital twins help companies address challenges by simulating all assets and interconnections in a complex supply chain . In BCG ’ s report “ Conquering Complexity in Supply Chains with Digital Twins ”, it was detailed how a company can apply the insights to augment decision-making across multiple planning horizons .
Short-term planning and execution : A digital twin can identify execution risks early and this means that companies can mitigate risks rather than manage crises . It enables the company to reduce the idle time of bottleneck assets and improve inventory positions . Sales and operations planning : The digital twin can optimise sales and operations planning ( S & OP ) by simulating the execution of a specific plan , highlighting risks and opportunities and feeding the insights back into the planning process . This allows the company to minimise the losses that arise from misalignment of plans and system constraints , as well as latent bottlenecks . The insights also allow the company to better align maintenance plans and inventory build ups with market demand . Longer-term planning : A company can improve the efficiency of capex and optimise the setup of the overall supply chain system by understanding where the most significant structural bottlenecks exist and how much additional capacity is needed .
63 supplychaindigital . com