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Supply chain issues are not over yet, say senior supply chain managers . Although supply chains have somewhat stabilized, half of the managers surveyed agreed that improvement is still needed. As supply chains undergo transformation, experts say that digital twins may be the key to more dynamic, agile supply chain models.
SAP’s Take
To mitigate volatility and manage uncertainty, businesses are increasingly looking to digital twins — virtual models of real-world objects, systems and processes that apply real-world data for real-time simulations. Some analysts believe that 2023 will be a year for of digital twins.
鈥淭his is a moment of opportunity to reevaluate how businesses operate,鈥� said Andy Hancock, 51风流global vice president of the Digital Supply Chain Center of Excellence. 鈥淪upply chains are under-performing and are in a recovery phrase. Businesses are looking to build risk resilience into their supply chain operations.鈥�
Some businesses already are preparing for the next global disruption by assessing the potential for digital twins to reduce exposure in supply chains and increase adaptability. Although the business case for digital twins in supply chains is still in exploration, Hancock predicted that interest in digital twins will gain momentum as the technology proves its value for modeling agile supply chains.
鈥淚 think we鈥檙e going to see digital twins as more of a foundation for data models,鈥� he said, emphasizing the difference of process modeling compared with the common use of digital twins to represent a physical asset, such as a vehicle, plant or person. 鈥淲e鈥檙e also going to see digital process twins, which means modeling a supply chain to get a complete understanding of the different moving parts to gain visibility.鈥�
Hancock is optimistic about the value that digital twins can deliver to supply chain operations.
鈥淭he digital twin will provide a foundational element for visibility,鈥� he said. 鈥淭his will support the overall objective of risk mitigation that a risk resilient and sustainable supply chain requires.鈥澛� However, he cautioned, 鈥渄igital twins are not new, and many supply-chain organizations have started their journey with them, but they have not yet delivered on the anticipated benefit. There is plenty of potential.鈥�
Abundance of Data
There are two trends driving the application of digital twins in supply chains. The first is the inexpensive data storage and the abundance of Internet of Things (IoT) sensors and new equipment that can connect digitally.
鈥淧eople have been collecting data for eons, and they鈥檙e really going to formalize it into a more structured environment, creating these digital twins across the organization,鈥� Hancock said.
The second trend is a matter of business survival. With the pandemic, companies became painfully aware of the lack of visibility they had into their supply chain. After 20 years of globalization, these linear, static supply chains were not able to adapt fast enough to keep up with consumer demands.
A hurdle to adoption of this technology, however, may arise if businesses are unable to reach agreements with third-party suppliers to extend visibility into their operations.
Real-Time Visibility for Better Decision-Making
The benefits from the use of digital twins in the supply chain increases exponentially with the infusion of real-time data. By combining real-time operational data and business information, supply chain managers can provide a context to the data that will result in better decision-making. It will not only provide insight into the current state of the supply chain, but also provide the ability to do forecasting and simulation of various scenarios.
鈥淚f we have real-time data as the source of all decisions, the time to respond to anomalies is greatly reduced,鈥� Hancock said. 鈥淭his creates a high degree of confidence in the recommendation at the moment of action.鈥�
Contact:
Ilaina Jonas, Senior Director of Global Public Relations, SAP
+1 (646) 923-2834, ilaina.jonas@sap.com
