---
title: Facts about Supply Chain-Digital Twins
description: Ten facts about the Supply Chain Digital Twins
image: https://blog.prophetic-technology.com/hubfs/sharon-mccutcheon-NeRKgBUUDjM-unsplash.jpg
---

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# [Facts about Supply Chain-Digital Twins](https://blog.prophetic-technology.com/facts-about-supply-chain-digital-twins)

The escalating force of the Supply Chain Planning (SCP) based upon learning machines systems brought...

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Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on Mar 5, 2020 2:54:10 PM

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The escalating force of the Supply Chain Planning (**SCP**) based upon learning machines systems brought about the **Digital Twins**.

**Digital Twins** approach is now of great importance as a *data-model* applied in high-quality decision-making, and is also considered as *the best ‘what-if-scenario’ planner*. It lets us to precisely *assess the resilience* of a complicated-echelon-global Supply Chain (**SC**.)

**Ten facts about the Supply Chain Digital Twins:**

·       Digital Twins are a *digital replica* of a *living* or *non-living* physical object.

·       It *can replicate* assets, processes, people, places, systems and devices used for a different purpose.

·       There is a link between the *physical model* and the corresponding *virtual model* or virtual counterpart.

·       This *connection* is created by *producing real-time data* using sensors.

·       **Digital Twins** encompass the Internet of Things (**IoT**), Artificial Intelligence (**AI**) Machine Learning (**ML**) and Software Analytics with spatial network graphs.

·       It creates *a living digital simulation model* that *update* and *change* as the *physical counterparts change.*

·       It constantly *learns* and *updates itself* from multiple sources to represent its near *real-time status, working condition* or *position*.

·       **Digital Twins are *hardly ever* exact copies.**

**Digital Twins probably *will not foretell the complete information*.** Unpredicted demands can indicate *in-progress* changes and the need for extra corrections.

·       The range and the diligence of the simulation are determined by the significance of data it has to the value chain.

Digital Twins generate *benefits* such as *upgraded* Procurement, business planning, improved sourcing, and supplier management. For instance, *when assessing the impact of random outcomes* on the **SC**, such as flood or drought events with the urgent need to close down distribution centres, that affect too, sales promotions on demand, inventory, distribution or customer-service levels. 

**How do you build a Supply Chain Twin?**

You must efficiently coordinate the *operational* and *financial* areas via *operation planning* and *sales schemes*. The business model *must be assessed compared* to an economic-structural design – profits, revenue, cost optimisation, Return on Investment (**ROI**) – and an approach to *evaluate improvement* both, of products or services while in progress.

From a *technology* point of view, the *essential software* must be capable of eventually *organise all information* that can likely influence the **SC**.  It means it *must know how to consider all sort of info* – from regular **SC** contributions to innovative-business sources (like Customer Relationship Management (**CRM**) data) and still *confused-online data that is influencing the demand sensing.*

The underlying *technology* of the **SC Twins** is *a [planning software platform](https://www.toolsgroup.com/resources/briefs/how-do-i-optimize-an-e2e-supply-chain-to-drive-organic-growth/)* capable of *shaping* the complete **SC,** beginning from the demand indication through the supply. Now, **SCs** are *complicated-organised-flexible systems* which procedures *run in* a lot of courses, frequently at the *same time*. As Gartner explains, *the value of responses* or *evaluations* produced by the software ***is significantly influenced by the attributes of such data pattern***, or *how well* the simulation shapes *reality* at the *exact moment* at which the responses *are produced*.

**CONCLUSIONS:** The experience of the world largest manufacturers when *taking advantage* of a **Digital Twins** approach all through its *entire distribution network* with master data, allows them *to convert* their processes from a regional to a *global-integrated-planning simulation. *

It facilitates planners *to move* from working locally to *being capable of making global decisions centred on maximum-data visibility* and to have *complete control* of their reference data.  

**Dave Food**

[Prophetic Technology](https://www.prophetic-technology.com/)

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