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Utilizing Digital Twins for Supply chains

June 27, 2022 | Prashant Dhingra

Blog / Utilizing Digital Twins for Supply chains

Influence of Digital Twins

The supply chain of today is totally different from it was ten years ago. It has never been more crucial to use an agile approach because supply chains are now complicated and dynamic as a direct result of the impact of technology. Real-time data accessibility is a crucial competitive advantage given the additional COVID-19 issue. Industry 4.0 is a technology framework that emphasizes digitalization and the ability to analyze data in real time to identify events.

The global industry 4.0 market is expected to reach $210B by 2026 as more businesses embrace digitalization. Digital twin technology is one of the top components of the digital transformation in the manufacturing industry as it increases productivity, revenue, and improves customer experience. Supply chain industry analysts can also leverage digital twin technology to achieve evaluative understanding of the current and future disruptions affecting their supply chains.

Address supply chain challenges using a digital twin

By replicating all assets and links in a complex supply chain, digital twins assist businesses in overcoming obstacles. How a business can use the insights to improve decision-making across various planning horizons was described in BCG’s research, “Conquering Complexity in Supply Chains with Digital Twins”:

Short-term planning and execution: A digital twin can detect execution problems early, allowing businesses to control risks rather than crises. It enables the business to decrease the amount of time bottleneck assets remain idle and to strengthen inventory positions.

Sales and operations planning: By modeling the execution of a given plan, identifying risks and opportunities, and feeding the insights back into the planning process, the digital twin can optimize sales and operations planning (S&OP). This enables the business to reduce losses brought on by system restrictions, latent bottlenecks, and plan misalignment. The organization can better match maintenance schedules and inventory builds with market demand thanks to real-time analytics.

Longer-term planning – By knowing where the biggest structural bottlenecks are and how much extra capacity is required, a company can increase the effectiveness of their long-term planning and optimize the configuration of the entire supply chain system.

Digital Twins: Savior for Supply Chains

The firm must take the initiative to introduce a digital twin for every technology implementation. Companies in the best positions will be those that fully grasp the value potential and chances for competitive advantage. For instance, a business can boost throughput, enhance service standards, and respond more quickly to changes in its sales portfolio by better understanding and safeguarding bottleneck risks in the supply chain. BCG advises businesses to deal with three enablers right now in order to bring about sustainable change:

  • Changing processes so that they can effectively use the new insights.
  • Building up the required capabilities and changing the way of working.
  • Leveraging a data and digital platform in order to release data from core IT systems and quickly build analytics-based minimum viable products.

The data digital twin technology leverages is mostly historical data. However, there are cases where digital twins can work with real-time data as well. Real-time data refers to the information that is delivered immediately after collection.

Positioning Digital Twin Supply Chains

It’s crucial to assess how the applications provided can fulfill your supply chain needs when thinking about a digital twin supply chain solution. The ability to precisely predict your supply chain is critically essential.

Digital Twin enablement rarely starts as a big bang, but rather, starts with solving one or few use cases to lay the foundation, embed them into the processes and then evolve into growing with additional capabilities to continuously add value with newer intelligence augmenting human decisions. 

For instance, a digital twin should be able to tolerate trade-offs and duplicate restrictions. Intelligent digital twins can examine both organized and unstructured data. To deliver the appropriate, useful information, they should be able to analyze a variety of scenarios. You should be able to simply modify and update digital twins thanks to modeling tools. The programming language must provide clear visibility into the digital supply chain twin’s formulas and organizational structure.


Pluto7’s Planning in a Box 2.0 is a Supply Chain Twin solution that is built considering every node of the supply chain offering real-time predictive analytics to forecast demand and manage inventory levels, to seamlessly collaborate with suppliers and gain value chain feedback. This flexible and intelligent service offers a digital replica of your landscape so that your business can create workflows with innovation and accuracy.

Essentially Planning in a Box 2.0 is your Supply Chain Digital Twin that is scalable throughout operations with a precise blend of internal, external, and even IoT data to drive higher intelligence throughout the supply chain. 

To learn more about Planning in a Box and the exciting outcomes driven by it, book a complimentary solution demo today.

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