Supply Chain & Logistics

Supply chain digital twin

Build a digital replica of your supply chain network to simulate disruptions, test alternative sourcing strategies, and optimise inventory deployment before making real-world changes.

Decision supportPattern-matchingCost reductionAccuracy

10–20%

reduction in supply chain operating costs

Opportunity assessment

Business Impact
4

Significant impact. Material effect on profitability, revenue, or cost base — visible at business level.

Feasibility
1

Very difficult. Requires custom development, specialist AI expertise, or capabilities that aren't yet reliable enough for production use.

Data Readiness
1

High data complexity. Needs large volumes of specialised, structured data that most businesses don't have and would be costly to build.

Risk Exposure
5

Very low risk. Fully internal use. A person checks everything before it goes further. Worst case is a minor internal inconvenience.

Change Complexity
2

High people impact. Daily workflows change materially for a number of people. Training, communication, and active change management needed.

Tooling required

Specialist AI toolFine-tuned model

Things to consider

  • McKinsey research shows retailers linking planning, inventory deployment, and transportation via digital twin achieved up to 20% increase in order fulfilment and 10% reduction in labour costs (McKinsey).

  • Building a supply chain digital twin is a major undertaking. It requires accurate data from every node in the network — suppliers, DCs, stores, transport — integrated into a single model. Most businesses underestimate the data work by 2–3x.

  • Vita Coco built a digital twin of their fulfilment network with RELEX Solutions, integrating cost data to optimise their 18-month supply plan. The 'what-if' scenario planning capability was the primary value driver (RELEX Solutions).

  • Start with a single corridor (one supplier to one DC to a set of stores) rather than attempting the full network. Prove the model's predictive accuracy on the simple case first.

  • Experiment starter: Map one supplier-to-store corridor with all relevant data (lead times, costs, constraints, demand). Build a basic simulation model (even in a spreadsheet). Test three disruption scenarios and compare the model's recommendations against what you would have decided manually.

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