While exploring various ideas for the next issue of the blog the author came across a unique terminology that seems to have got the supply chain industry by storm. The trend is somewhat in the embryonic stage in terms of operational implementation, but the way the logistics sector is being catapulted towards a digital overhaul, it would not be a prophetic thing to say that a few years down the line, this phenomenon would gradually take the centre stage in supply chain management and optimization. The term that is being referred to over here is 'digital twin'.
For those who have not yet been initiated into the definition of it, digital twin, in the simplest words, alludes to the virtual replication of every possible aspect that is associated with the supply chain and that can include assets, warehousing, inventory positions et al. With the industrial world is undergoing the 4th revolution in the digital space and the coinage ‘Industry 4.0’ gaining momentum, digital twinning has become a key player in which many of the big players have invested judiciously and are reaping the benefits of it due to the technical and operational competence that it has brought in the ambit.
It must be noted that digital twinning is an umbrella term that contains a number of digital and computational upping such as cloud computing, IoT, AI, ML, simulation and so on. The biggest advantage that digital twin offers is that by digitizing the entire process of manufacturing and proving real-time data in operation, it upholds the entire lifecycle of a product, ranging from commissioning to maintenance. And in tandem, it generates reliable metadata that renders help in crunching numbers in the planning and optimization process.
While simulating the vantage points of the business, digital twinning also assists in pointing out the volatility in the businesses which in turn is fruitful in resolving these stumbling blocks. The process of digital twinning has been brought to prominence especially in the post-covid outbreak. The pandemic exposed the drawbacks that lay latent in the framework of the industry on the macro scale. And to withstand further breakdowns and disruptions, companies have scaled their business efficiencies to get armed with resilience and that is exactly where the efficacy of digital twinning comes to the fore.
There is no dearth in the veracity of the statement that supply chain business is an extremely complex multi-tier affair that involves multiple stakeholders and copious internal, as well as external factors impacting the business performances and balancing the difficult trade-offs, can be a cumbersome task. Since the digital twinning process encloses facets such as manufacturers, suppliers, distribution facilities, transportation routes and customer locations, it is efficacious in assessing the inventory, throughput, services by providing end-to-end visibility in AR/VR mode. With the real-time representation bringing transparency in the entire process, companies can strike a balance between the expectations and the reality in every possible sphere and can come up with corrective measures to mitigate the raptures and resolving bottleneck issues.
Since digital twinning can be an expensive enterprise, companies may start the procedure by short-term planning. Steadily they may veer into simulating sales and operational planning with the objective of optimizing the plan, minimizing losses and evoking scalable data to load the business further. Identifying the latent bottlenecks can empower the business, provide durability and help gain insights even in issues like market, customer retention, replenishment and maintenance.
The companies that have already adapted to the digital twinning and have created a digital space for themselves have a better edge over the others in gaining perspectives from a vantage point. Hence, it is indeed advisable that business leaders and executives ponder upon the viability of digital twinning and brace themselves for a massive swap in the system.