Digital twins can aid analysts in comprehending the behavior of a supply chain, forecasting improbable events, and offering a plan of action to cut costs and increase process efficiency. A new product's whole business cycle, from design to manufacture to logistics to retail to sales performance, can be modeled, and the complete process, including supplier supply chains, becomes visible. Given the complexities of modern supply chains, it is not surprising that many industries are prone to supply chain disruptions.Īlso See: Digital Twin Technologies Transforming Supply ChainsĪ digital twin allows a business to anticipate the effects of its strategy and future decisions. In today’s uncertain business landscape, companies must be aware of the threats to their supply chains and the risk-reduction techniques available. The digital copy mimics every aspect of the physical supply chain, including its assets, stocks and warehouses, logistical flows, transactions, and third-party interactions, and is like a parallel universe. It serves as a predictive "test bed," assisting businesses in lowering operational costs and boosting the lifespan of equipment and other tangible resources. Digital TwinĪ digital twin, also known as a virtual model, enables a company to comprehend its architecture and functioning and forecast process efficiency. Stress tests can identify weak points in the supply chain and recommend mitigating measures.Ī stress test is done by evaluating data from various supply chain nodes, building a digital twin/model of the supply chain, and putting the digital twin through simulating scenarios, including disruptions to one or more nodes. With supply chain stress tests, firms can swiftly pinpoint potential financial exposure areas related to supply chain failure points, define the best mitigation plans, and compare their resilience to that of their competitors. These tactics rely on predicting future trends using past data and often do not take any significant disruption into account.Ī global call has gone up to develop specific risk scenarios and supply chain stress tests for essential products to ensure more resilient supply chains that are not disrupted by events like the pandemic. Lean global supply chains, widely implemented to cut costs through effective production allocation to low-cost regions, just-in-time manufacturing techniques, and holding lower inventory levels throughout the supply chain, have also contributed to the shortages during the pandemic. The global pandemic-which disrupted activities across all spectrums of life-has highlighted major supply chain weaknesses, particularly those crucial for sectors like pharmaceuticals and medical supplies. As uncertainty continues to grow amid rising inflation, businesses must quickly adapt to a new normal.Īnd if there’s one thing that is likely to be constant in this new normal – it’s disruption.
0 Comments
Leave a Reply. |