Digital twins enhance SCM software by integrating with existing tools like advanced planning and scheduling (APS), warehouse management (WMS), and transportation management systems (TMS), acting as an innovation layer. They optimize data inputs, providing predictive analytics to respond to various scenarios. For example, a global OEM used a digital twin to optimize policies in their TMS, reducing freight and damage costs by 8%.
Digital twins improve SCM in several ways:
- End-to-End Connections: They integrate SCM tools, offering a coordinated view across the entire supply chain.
- Resiliency: In dynamic markets, they provide real-time visibility and predictive analytics to address supply chain disruptions, reducing costs (e.g., 5% reduction in last-mile transportation costs).
- Multiple Objectives: They balance competing priorities, enabling rapid responses to shifting demand and supply constraints.
- Variability: By analyzing metrics like lead time and demand, digital twins help identify opportunities for cost reduction, such as a 15% reduction in distribution center costs.