Enhancing Supply Chain Operations Using IoT and Digital Twin
1 ABSTRACT
This paper will discuss how to enhance the supply chain operations using IoT and digital twin . Connected supply chain operations provide better visibility and tracking , and using IoT systems such data can be used as the foundation for building the process digital twins .
Supply chains often involve a complex network of interconnected systems leading to the movement of goods and services from suppliers to customers . In recent years , the supply chain has become increasingly digitalized , using IoT and digital twins . IoT sensors data such as location of goods in transit and the temperature of refrigerated goods can be used to identify potential quality issues as well as improve the design , operation and performance of the supply chain processes .
Overall , IoT and digital twins of supply chains can help to improve efficiency , reduce costs , and improve customer satisfaction .
2 INTRODUCTION
Well-designed SCM systems are complex operational networks that enable the timely and efficient movement of products and services from suppliers to customers . SCM systems involve many different stakeholders working together , which include manufacturers , distributors , transportation providers , warehouses , retailers and both b2b and b2c consumers .
Coordinating these interconnected systems of SCM is critical but often not an easy task . In many cases , these supply chains may span global distances , e . g . a car being manufactured overseas . Even small inefficiencies can cascade into major disruptions in supply chain operations .
As an example , the blocking of the Suez Canal by the Ever Given container ship in March 2021 paralyzed this critical trade route and caused major disruptions to global supply chains . Here is the overview of this incident that aggravated a global supply chain operations crisis :
• The Suez Canal is one of the world ' s most important trade routes that is used by about 50 ships daily . It provides the shortest sea link between Asia and Europe .
• When the 200,000 ton Ever Given ran aground and blocked the canal on March 23 , 2021 , marine traffic came to a standstill in both directions .
• Over 360 ships ended up stuck waiting days or weeks to traverse the canal , stopping the flow of raw materials , intermediate goods , and finished products .
• The timing was especially bad as shipments of manufactured goods , commodities , and energy products were already facing strains after the pandemic .
Journal of Innovation 3