What are digital twins?

A digital twin in the supply chain is much more than a simulation model. It is a virtual system that combines data visualization, technology and analytics to enable better decisions in supply chain management. Compared to traditional simulation models where engineers set parameters manually, the digital twin is based on real-time data from internal and external sources.

The role of the digital twin in the supply chain

Digital twins are crucial for the generation and transfer of knowledge. With the further development of intelligent digital twins (iDT), advanced technologies such as machine learning and artificial intelligence are being used. These enable automated data analysis, the imitation of human decision-making processes and the generation of new insights.

The three levels of digital twins:

1. Basic digital twins: this level focuses mainly on supply chain visualization and modeling.
2. Cognitive digital twins: these systems mimic human decision-making processes.
3. Intelligent digital twins: the most advanced level not only creates new decision-making algorithms, but also generates new knowledge.

Resilience systems in the supply chain

In the course of the development of digital twins, resilience systems have also evolved. These systems aim to anticipate risks in the supply chain and respond better to disruptions.

Three types of resilience systems:

1. Reactive resilience: reacts only after a disruption has occured.
2. Adaptive resilience: learns from past events and adapts future responses.
3. Proactive resilience: anticipates disruptions before they occur and integrates foresight into supply chain systems.

Digital twins make the unknown known

One of the biggest challenges for resilience is the so-called “unknown-known”. Digital twins help to solve this problem by better understanding and controlling the uncertainties that can affect a supply chain. Especially in crisis situations such as the COVID-19 pandemic, digital twins have proven to be valuable.

The future of digital twins in supply chain management

The future belongs to intelligent digital twins. The combination of human expertise and artificial intelligence’s ability to process large amounts of data will make supply chains more resilient and agile. Platforms such as anyLogistix are leading the way in this area as they enable data-driven digital supply chains.

Benefits of human-machine collaboration:

• Better decision maing through real-time data
• Increased agility and resilience of supply chains
• Optimization through digital twins and intelligent tools such as anyLogistix

It is crucial for supply chain managers to understand how real-time data influences decision-making. In the future, the decisions they make will be largely shaped by technologies such as intelligent digital twins and tools like anyLogistix.

Digital twins are key to making supply chain more resilient, agile and intelligent, helping companies overcome both known and anticipated supply chain challenges.

This text is based on a presentation by Prof. Dr. Dr. habil. Dmitry Ivanov from the Berlin School of Economics and Law, given at the anyLogistix Conference 2023.