The digitisation of supply chains, profoundly altered by e-commerce and Industry 4.0 innovations, is driving a fundamental reevaluation of how logistics and transport value chains are managed today. Traditional linear supply chains, once considered sufficient, increasingly struggle to cope with the dynamic demands and complexity of modern interconnected networks. This shift necessitates a more adaptive, data-driven approach to supply chain orchestration, of which digital twinning is proving a pivotal strategy.
Digital twins in supply chain management involve creating a dynamic, virtual representation of the physical supply chain, which varies depending on the modelling, visualization, analytical, and simulation techniques applied. This virtual model replicates inherent supply chain characteristics and enables businesses to experiment safely with transformative ideas, test scenarios, and optimise operations without disrupting physical processes. The progression from the current “As-Is” model of a supply chain to a future “To-Be” state is laden with data challenges, requiring different granularities of data processing and modelling at each transition phase.
Innovative tools embedded within a “sandbox” environment allow stakeholders to generate real-time insights, simulate multiple operational scenarios, and derive actionable business intelligence. By incorporating components such as Internet of Things (IoT) sensors, machine learning, and big data analytics, businesses can harness extensive raw data—spanning structured transaction records to unstructured social media feedback—and convert it into a competitive advantage through predictive insights and optimisation.
A critical need in this transformation lies in overcoming persistent pain points like poor supply chain transparency, lack of collaboration, inflexibility, and limited intelligence. Traditional supply chains often suffer from functional silos that curtail open data sharing, resulting in ineffective demand planning, high operating costs, and poor service levels. A comprehensive digital twinning platform serves as an orchestration hub, integrating technologies, processes, and assets to foster seamless data sharing and collaboration across value chains.
Such platforms enable various critical features including real-time visibility, exception management, dynamic planning, and comprehensive monitoring. They allow for the visualisation of current supply-demand flows, optimisation of distribution networks using geographic positioning systems, and adjustment of plans according to practical constraints such as regulatory or financial limits. Moreover, intelligent engines embedded within these platforms use optimisation algorithms and simulation to generate and evaluate multiple supply chain reconfiguration scenarios, supporting agile and data-driven decision-making.
Recent technological advances extend beyond digital twins themselves, as blockchain integration offers enhanced security, transparency, and traceability within supply chains. According to academic studies, combining blockchain with digital twins can optimise data management and sharing—particularly in manufacturing, warehousing, and logistics settings—by establishing trusted, immutable records of transactions and state changes. This intersection holds promise for building resilient and reliable networks, critical in an era marked by frequent global disruptions.
The COVID-19 pandemic and other shocks have underscored the importance of visibility and agility in supply chains. Traditional tracking technologies have shown their limitations in providing comprehensive, real-time insights. Emerging AI and machine learning-driven “control tower” solutions advance the field by preempting disruptions and dynamically optimising operations. Digital twins enhance this by simulating the impact of various decisions and events, enabling stakeholders to collaboratively enhance situational awareness and resilience.
Industry experts highlight that digital supply chains, empowered by AI, big data, and predictive analytics, can significantly reduce manual interventions and create end-to-end electronic visibility—from customers through all tiers of suppliers. These capabilities help companies manage variability in supply and demand more effectively, thus reducing costs, minimising risk, and improving service levels.
Additionally, research emphasises the role of multi-agent systems integrated with digital twins in logistics collaboration, representing various stakeholders and mobile assets as autonomous agents. This architectural approach fosters cooperation through loosely coupled systems connecting physical and digital realms, enhancing coordination and efficiency in complex logistics networks.
In sum, digital twinning is emerging as a crucial enabler for the supply chain digital transformation journey. By providing a virtual sandbox for innovation, enhancing transparency, promoting collaboration, and enabling intelligent optimisation, digital twinning platforms empower organisations to adapt and thrive amid evolving market dynamics and increasing global challenges. While still evolving, the integration of blockchain, AI, and multi-agent systems within these frameworks signals a future where supply chains will be more responsive, resilient, and efficient.
Such developments underscore the need for companies to rethink legacy systems and invest strategically in these emerging technologies to create a connected, intelligent, and flexible supply network platform. This evolution is not merely about technology adoption but about orchestrating people, processes, and assets to forge a competitive edge in an increasingly digital economy.
Source: Noah Wire Services
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