Improving supply chain visibility within logistics by implementing a Digital Twin : A case study at Scania Logistics

University essay from KTH/Skolan för industriell teknik och management (ITM)

Abstract: As organisations adapt to the rigorous demands set by global markets, the supply chains that constitute their logistics networks become increasingly complex. This often has a detrimental effect on the supply chain visibility within the organisation, which may in turn have a negative impact on the core business of the organisation. This paper aims to determine how organisations can benefit in terms of improving their logistical supply chain visibility by implementing a Digital Twin — an all-encompassing virtual representation of the physical assets that constitute the logistics system. Furthermore, challenges related to implementation and the necessary steps to overcome these challenges were examined.  The results of the study are that Digital Twins may prove beneficial to organisations in terms of improving metrics of analytics, diagnostics, predictions and descriptions of physical assets. However, these benefits come with notable challenges — managing implementation and maintenance costs, ensuring proper information modelling, adopting new technology and leading the organisation through the changes that an implementation would entail.  In conclusion, a Digital Twin is a powerful tool suitable for organisations where the benefits outweigh the challenges of the initial implementation. Therefore, careful consideration must be taken to ensure that the investment is worthwhile. Further research is required to determine the most efficient way of introducing a Digital Twin to a logistical supply chain.

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