Another core solution in digital supply chain transformation is the creation of a virtual replica of a complex supply chain system: a digital twin of a company’s entire supply chain.
Using advanced analytics and AI, a digital twin simulates supply chain performance. This model replicates all assets and interconnections, including those in production and supply, finishing and warehousing, and logistics. As a result, it pinpoints where volatility, uncertainty, and risk exist, as well as where optimization is possible. A digital twin can help reduce idle time by as much as 80% and delivery delays by 30%.
Clients collaborating with BCG’s supply chain digitization experts on digital twins have realized, for example, a 5% reduction in sustainable inventory, a 10% reduction in capital expenditures, and EBITDA growth of 1 to 3 percentage points.