Enhancing Supply Chain Operations Using IoT and Digital Twin
reduce chances of larger amounts of inventory getting stuck in transit . Such advisories can be generated based on weather predictions , seasonality and traffic volumes .
In this example , if the inventory is tracked by the shipper , then the delay in the replenishment or the delivery can also be tracked . This can be achieved by inputting tracking data into the process digital twin , which in turn can be used to run scenario analysis to decide if alternate shipment , such as air shipment for electronics or expensive merchandise , should be initiated to prevent fulfillment defaults . Likewise , simulations can be done using the process twins to figure out how production orders in the factory should be altered to deal with a crisis .
Using a related example from Peloton , the home-gym equipment company who experienced massive demands in early 2020 . Due to the pandemic , which had forced gyms to close , Peloton CEO John Foley said they were flying parts from all over the world in 2020 to meet massive demands . While the cost of flying gym equipment parts is very high , it met their needs due to high customer demand for their premium end products .
The connected Peloton products provide leading indicators of actual use and user satisfaction and the expected demands from the customers . This proves that advisories and recommendations from the forecasting and simulation systems based on data from connected products and operations when coupled with appropriate sourcing strategies , can help to optimize the SCM systems . This is one way to reduce the adverse impact of the global supply chain crisis .
3 CHALLENGES
One of the biggest challenges in supply chain operations is the lack of real-time visibility and tracking of inventory and assets as they travel through the network . This can lead to problems such as stockouts , late deliveries , and product damage . The lack of real-time data creates opportunities for instrumentation of the shipments , operations , manufacturing facilities and in some cases the end products , as well .
Another challenge in supply chain management is the need to optimize routing and scheduling . This can be a complex task , as it involves taking into account factors such as traffic conditions , weather , and the availability of transportation resources such as trucks , trains and ships . IoT sensors and weather information can help to optimize routing and scheduling by providing realtime data on traffic conditions and the location of assets . The purchase of The Weather Company in 2015 , for $ 2.9 billion , by IBM is supporting evidence , when IBM started investing in development of IoT solutions .
Supply chains are also vulnerable to disruptions . These disruptions can be caused by natural disasters , accidents , cyberattacks , or even human error . In May 2021 , a ransomware attack on Colonial Pipeline caused a massive fuel crisis in the eastern parts of the United States . The attack forced Colonial to shut down its entire pipeline system . This system delivers about 45 % of the fuel consumed in the Eastern US IoT systems in combination with Digital Twin of Twins can be
6 August 2023