Did you say Supply Chain Digital Twin?
Demystifying Digital Twins and unlocking the value potential in Supply Chains
As global dynamics are becoming more turbulent, technology innovation more disruptive and environmental sustainability ever more imperative, supply chain leaders are facing unprecedented challenges. Leveraging AI powered by cloud technology, datasets from diverse systems to generate a replica of the real-world, are Digital Twins the silver bullet to address the current challenges in supply chain?
What is a Digital Twin?
It was on the rainy track of the Grand Prix in Monte Carlo that McLaren managed to snatch the race despite a huge setback: a tire exploded. The commentators sounded chaotic as a lot was happening at the same time. On the other side, through the headsets of the McLaren team, there was complete calmness. Everybody knew exactly what to do, and the driver only received a few relevant instructions. Teams like McLaren leverage Digital Twin analytics to prepare these scenario’s and quickly calculate the best strategic response.
This is a great example of a Digital Twin, the ability to develop a digital representation of reality and then fast forward to likely future scenarios through cloud-enable analytics leveraging the latest analytics methodologies. Digital Twins not only help determine an optimal strategy upfront but also allow to react very quickly to changing circumstances. Be prepared for what is about to happen rather than react to it.
Evolve or brace for impact
The key challenge at the heart of supply chain management is the complex problem of reconciling two conflicting objectives: maximizing customer service while minimizing cost. Currently this task has become significantly more complex, as the world is increasingly globalized and interconnected, consumers are more demanding, the energy transition is imperative, and geopolitical dynamics are ever more turbulent.
The use of advanced analytics and control towers to help make complex decisions is nothing new to supply chain leaders. So, what is the buzz around Digital Twin technology?
What sets Digital Twin apart?
The differentiator of Digital Twin technology is the AI/ML intelligence engine, deployed on a digital replica of real-world assets and processes, integrating large datasets coming from a diverse set of systems, powered by cloud technology. Digital Twin technology will enable the next generation of prescriptive and immersive control towers with use cases that will increasingly evolve in the tactical and strategic domain.
The AI/ML intelligence engine deploys cutting edge AI based algorithms such as reinforcement learning, statistical learning and Bayesian Optimization. This allows to reach better decisions faster compared to traditional Operations Research methodologies. Cloud-enabled analytics allow to stream near real time data for unprecedented insights.
These innovations open the possibility to include a new variable in the optimization: environmental footprint. This enables companies to accelerate their sustainability agenda.
Descriptive control towers give transparency in the past and in the now, whereas prescriptive control towers, powered by Digital Twin technology, give transparency in the future “WHAT IF” states.
Your journey, our partnership
At Deloitte we have the right expertise, leveraging our IDO framework, to help you on your maturation journey to deploy and reap the benefits of Digital Twin technology. Connect for more information on Digital Twins and discuss how it can be applied to your organization.
