What would happen if we changed our stockpiling strategy?

This question can be answered while operations are ongoing. However, the consequences will then be immediately apparent: in inventory levels, delivery capacity, and costs.

A digital twin opens up an additional possibility. It maps the supply chain and its planning and control mechanisms in a virtual model. This is based on operational data, such as that from the ERP system.

This model allows changes to be analyzed without interfering with day-to-day operations.

The key is to map out the relevant relationships: How do demand, lead times, and replenishment rules interact? What are the consequences of a change in one area for other areas?

Our blog post explains how a digital twin is built and how companies can use it.