Enhancing Supply Chain Operations Using IoT and Digital Twin
• Supply chains around the world felt ripple effects . Automakers could not get parts , leading to production halts . Europe faced delays in seafood , fruits , and oil deliveries from Asia .
• Even after Ever Given was freed on March 29th , the backlog of ships took over a week to clear as congestion persisted .
• Economists estimate that the blocking of the canal cost global trade over $ 9 billion with higher shipping rates and inventory shortages lasting months after .
• The crisis highlighted the vulnerability of supply chains and their dependency on single points of failure like the Suez Canal . It accelerated talks of alternate trade routes .
Even in the age of technological advances , this short-term Suez Canal obstruction led to severe consequences by paralyzing the interconnected flow of global commerce and underscoring the fragility of modern supply chains .
We need to harness the technologies available to us today , to prevent such supply chain disruptions in future . In recent years , there has been a growing interest in using IoT and digital twin technology to enhance supply chain operations . IoT involves a network of internetconnected smart sensors that can monitor almost any kind of activity or condition in the physical world . Such systems are enhanced by weather monitoring as well as weather predictions and other similar external data . Digital twins are virtual representations of physical assets or processes such as supply chain and logistics operations . By integrating IoT data flows into digital twin models , supply chains gain unprecedented visibility , responsiveness , and coordination .
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 , the synergy between IoT and digital twin can help to improve supply chain operations efficiency , reduce costs , and improve overall customer satisfaction . Here are some ways :
• Location Tracking for Real-time visibility : IoT sensors could be used to track the location and condition of goods in transit . This would provide real-time visibility into the supply chain , which could help to identify and resolve problems early on .
• Supply Chain Process Models : Digital twins can provide virtual representations of the supply chain processes . They can be used to simulate the behavior of the logistics operations and movement of goods , and to test different scenarios . This could be used to test different routing and scheduling options , and to identify potential bottlenecks in the supply chain .
4 August 2023