Target’s digital twin system revolutionises supply chain planning with real-time simulations

Target has built a proprietary digital twin system, Proxima, to give its supply chain teams a closer look at how goods move through the retailer’s so-called middle mile, the stretch between distribution centres and stores.

The tool, developed by teams across supply chain, product and engineering, creates an interactive virtual model of inventory flow and logistics decisions. By simulating scenarios before they are put into practice, Target says it can assess the likely impact...

of choices such as lead times and the shelf life of fresh products, helping to reduce stock gaps and tighten operations.

Digital twin technology is increasingly being used in retail and wider supply chains as companies look for better ways to test decisions without disrupting live networks. In practice, these systems can act as virtual replicas of warehouses, transport routes, stock positions and material flows, allowing organisations to explore how different assumptions affect service levels, costs and resilience.

According to Target, Proxima is designed to flag risks early so teams can adjust course before problems reach stores. That kind of feedback loop is a central aim of digital twin systems more broadly: combining data, modelling and scenario testing so planners can understand how the network is likely to behave under changing conditions.

“Proxima creates faster feedback loops and helps us see around corners so we can modernise complex supply chain processes with confidence while continuing to deliver for guests,” said Sousan Ortega, senior vice-president for field replenishment in Target’s supply chain organisation.

The retailer’s move reflects a broader shift in the sector towards more sophisticated modelling tools, with industry groups and technology firms arguing that digital twins are most effective when they are tied to clear operational decisions and continuously updated with live data. For Target, the focus appears to be on using the system not as a theoretical exercise, but as a practical way to improve planning in one of retail’s most difficult parts of the network.

Source: Noah Wire Services