Leveraging Digital Twins to Enhance Supply Chain Efficiency
As industries push for greater efficiency and adaptability, digital twins are emerging as one of the most innovative tools for transforming supply chains. A digital twin is a virtual model of a physical object, process, or system. It allows companies to simulate, predict, and optimize supply chain operations in real time by creating virtual replicas of physical assets. By 2025, digital twins are set to revolutionize how businesses manage logistics, procurement, and overall supply chain efficiency.
With real-time data, advanced analytics, and machine learning integration, digital twins allow procurement and supply chain professionals to streamline operations, reduce costs, and minimize risks. Here, we explore how the technology works, its impact on the procurement field, and the skills professionals need to stay ahead.
What Is a Digital Twin?
A digital twin mirrors real-world operations in the digital realm. It takes data from various sources, such as IoT sensors, cloud-based platforms, and blockchain systems, and uses it to create an up-to-date replica of physical supply chain assets. This enables companies to monitor, simulate, and optimize processes, from production to shipping and procurement.
For example, Rolls-Royce uses digital twins to monitor their aircraft engines in real-time, predicting maintenance needs and minimizing downtime. This system helps improve operational efficiency and reduces costs, making their supply chain more resilient.
The Benefits of Digital Twins in Supply Chain Management
Enhanced Predictive Maintenance
Using digital twins allows for predictive maintenance by monitoring physical assets and predicting potential failures before they occur. For instance, Unilever has implemented digital twin technology to track production line assets and avoid equipment breakdowns. The result is improved operational efficiency, reduced downtime, and significant cost savings.
Improved Risk Management
Supply chains are constantly exposed to risks such as natural disasters, trade disruptions, or unexpected demand changes. With digital twins, procurement professionals can simulate various scenarios and develop contingency plans in real-time. Amazon has integrated digital twins into its warehouse operations to test logistics scenarios, helping it to avoid risks like transportation delays or warehouse bottlenecks.
Supply Chain Optimization
Digital twins allow companies to continuously monitor and optimize their supply chains. By analysing data from across the supply chain network, businesses can fine-tune logistics, adjust inventory, and improve lead times. Siemens uses digital twins to optimize its global supply chain operations by predicting and adapting to demand fluctuations more accurately.
How to Prepare for the Future of Digital Twins in Procurement
To stay competitive in an industry driven by data and technology, procurement professionals must familiarize themselves with digital twins and how they function. Here are the key skills and certifications needed to excel:
Data Analysis and Machine Learning Skills Procurement professionals need to develop a strong understanding of data analysis and machine learning to work effectively with digital twins. Certifications in data science, such as those from Coursera or edX, can help professionals gain the skills needed to interpret data from digital twins.
IoT Integration Knowledge Understanding how IoT devices feed into digital twins is critical. Professionals should be familiar with IoT integration platforms, such as Azure IoT or AWS IoT, to ensure seamless data flows between physical assets and their digital counterparts.
Cybersecurity Awareness As digital twins rely on real-time data collection, cybersecurity becomes paramount. Ensuring the security of data from IoT sensors and other sources is crucial for protecting intellectual property and operational integrity. Procurement professionals should consider certifications in cybersecurity, such as the Certified Information Systems Security Professional (CISSP) to mitigate risks in this area.
As the role of digital twins in supply chain management grows, procurement professionals must equip themselves with the knowledge and skills necessary to harness the technology's full potential. By embracing this innovation, businesses can optimize their supply chains, predict risks, and achieve greater efficiency—all while staying competitive in a rapidly changing global landscape.
Stay connected with Langley Search and Interim, a specialist recruitment agency for procurement professionals, for the latest updates on roles in this evolving field.