Digital Twins and their impact on the Supply Chain

In our previous publication from Deloitte The Netherlands, ‘Did you say Supply Chain Digital Twin? Demystifying Digital Twins and unlocking the value potential in Supply Chains’, we explored the capabilities of Digital Twins in the digitization era. We differentiated them from control towers and described the possibilities of leveraging their analytical power from descriptive to predictive insights, thanks to the use of advanced algorithms. Additionally, we discussed their use at operational, tactical and strategic levels, including the potential impact on sustainability.

In this latest report, we built an ad hoc pipeline based on our in-house GenAI assistant Headstart to analyze over 80 academic, professional, and expert sources while retaining the highest level of quality. This in-depth research provided fresh insights into the practical use of Digital Twins across three key Supply Chain domains. We include industry-specific examples to show how this technology can drive measurable results and deliver strong return on the investment.

A Digital Twin is a virtual representation of a physical object, process or system. It enables superior decision-making and value creation through end-to-end optimization.

Digital Twins allow businesses to simulate, predict, and optimize their processes and operations. By using advanced analytics and machine learning technologies, companies can improve efficiency, reduce costs, and enhance service delivery – giving them a competitive edge in a fast-changing world. The power of Digital Twins is maximised through a Decision Intelligence mindset, which integrates analytics insights with effective governance, processes, and automation.

Key Research Findings:
The Digital Twin industry is poised for exponential growth, with projections ranging from 30 billion USD to over 250 billion USD. The Asia-Pacific region is expected to lead this growth. This rapid development necessitates that Supply Chain leaders integrate Digital Twins into their strategic, tactical and operational planning. These technologies seamlessly enhance decision-making for top and bottom-line growth, ensuring future-ready operations.

Key Research Focus:
Impact of Digital Twins in three Supply Chain specialization domains:

• Logistics & Distribution: Optimizing route planning, warehouse operations, and distribution strategies.
• Demand & Supply Planning: Enhancing inventory management, visibility, and demand forecasting.
• Procurement: Applying predictive analytics to pricing, supplier management, and risk assessment.

Reach out to us if you we have sparked you are ready to activate your digital twin strategy with Deloitte!