In our last post we introduced the enterprise digital twin and explained how it helps you to understand your business operating model from end to end. But what does a supply chain digital twin have to do with this?
In order to survive in today's age of digitization, processes must be consumer-oriented and flexible. To respond to customer needs while being competitive, supply chain networks need continuous improvement to ensure goods and services are delivered on-time. Yet, despite new technologies, many supply chain managers still face daunting challenges related to visibility of their networks.
Managing a supply chain means making a high number of far-reaching decisions every day. That means a daily balancing act between logistics challenges and customer requirements. In this environment, getting relevant information and full insight into all elements of the supply chain quickly and through an intuitive tool is critical.
Think back to our example from the last post. The digital twin is similar to a fitness watch. In this specific example, the supply chain process is comparable with a daily run to stay fit. Imagine having to be home on time for your next business call, but want to run one more lap to stay fit.
There are so many different factors influencing your run: You can choose from several routes; you may run faster if you are not alone; the weather affects the pace too. Do you run in the rain through the forest and the mud, or through the streets in the heat of the day? Your running friends may or may not turn up. So how do get home in time? Which route is best? Who should accompany you? Can you postpone the run today or do you need to do it for your health? Just as you would be assisted in all these questions by a fitness app that knows your data, routes, running habits, and environmental influences, you can figure out the supply chain digital twin for your supply chain.
A supply chain digital twin enables you to create a mirror of your processes and all related business information within your organization. Use it to create a continuous loop that allows you to quickly and continuously fine-tune your supply chain network!
Use dashboards to identify low-running processes with discrepancies or structural faults. Monitor your processes in real time or take a specific action whenever needed. Drill down into KPIs of individual processes — like procurement, delivery and logistics processes from a high-level perspective, checking for a solution and analyzing process exceptions and faults.
Compare the actual (as-is) and desired (to-be) processes side-by-side to analyze your current situation with logistics providers and assess suppliers in order to optimize the processes. Find delays and root causes and improve processes to perform better, cheaper and faster.
In short - a supply chain digital twin allows you to understand your end-to-end processes, find bottlenecks and improve performance beyond all expectations. Achieve excellence in your daily supply chain network and increase visibility and transparency of your end-to-end supply chain. Set standards for the supply chain and benchmark processes across product lines. Make informed decisions to improve logistics and trigger and communicate changes with the Center of Excellence and end-users.
Do you also want to whip your supply chain into shape?