Supply Chain Digital Twins

What is a supply chain digital twin?

A Supply Chain Digital Twin is a detailed simulation model of an actual supply chain which uses real-time data and snapshots to forecast supply chain dynamics. From this, analysts can understand a supply chain’s behavior, predict abnormal situations, and work out an action plan.

A supply chain digital twin can be used for:

• Understanding supply chain dynamics and behavior
• Bottleneck discovery
• Testing supply chain design changes and development
• Monitoring risk and testing contingencies
• Transportation planning
• Inventory optimization
• Cash to serve and cost to serve analysis
• Forecasting and testing operations over the coming days and weeks

In our white paper, Supply Chain Digital Twins, we investigate how digital twins and control towers are resolving challenges in supply chain. Read the white paper and estimate the value digital supply chain twins can offer your business!

What distinguishes a digital twin from regular supply chain simulation models?

• A supply chain digital twin is detailed enough to analyze the supply chain interactions, from macro changes in demand down to inside the four walls of facilities. It should enable functions such as the prediction of financial and SKU flows, demand variability identification, and scenario testing.
• It uses live information feeds, such as incoming shipment schedules, vehicle locations, and inventory levels, to assess the supply chain’s current state and provide updated forecasts. For example, quantifying the bullwhip effect from lost inventory.
• It offers configurable notifications, alarms, or alerts to inform you of abnormal situations such as service levels falling below thresholds.
• It provides triggers you can use to set up custom actions that will automatically take place when selected events occur, such as potential stock outs.
• It allows you to develop action plans to help you address abnormal situations, and test those plans to ensure they are effective.
• A digital supply chain twin is a part of a “bigger thing” — the simulation model integrates with the surrounding IT environment of databases and business intelligence tools.

To gain greater insight into trending topics such as digital twin and control tower, you can watch our webinar. In this webinar we explain what a digital twin is, and how it can be used to create supply chain control tower.

How to build a supply chain digital twin

A supply chain digital twin does not stand alone. It integrates with company systems, uniting data flows and stores, and provides users with a universal window on supply chain workings. To build a digital twin of your supply chain, you need to use a flexible, scalable, and interoperable supply chain software.

anyLogistix (ALX) provides a platform to create your supply chain digital twin and enhance your operational and tactical decision making. anyLogistix integrates with all kinds of Enterprise software, including:

• Supply chain management
• ERP
• Business intelligence
• Transportation management
• Demand forecasting
• Production planning
• Inventory management

A more detailed example of how these tools can be integrated can be found in the white paper.

An example of the internals of a supply chain digital twin. For more details read the white paper.

Create a digital twin of your supply chain with anyLogistix for supply chain oversight, powerful analytics, system testing, and development experimentation. To start off, read the white paper or start building your supply chain model.