Supply chains are becoming more complex worldwide, and prone to sudden disruptions. Before it’s too late, you must have a means to find out what is the weak link in your system, and how and where you can see past corners. In this blog, you will learn how advanced simulation solutions can help you to simulate your network in a digital space and take the proactive steps necessary to manage risks and ensure your business runs smoothly.

The potential of Digital Twin Technology in real estate

Digital twin technology is often used in simulation solutions, enabling a virtual representation of your actual supply chain based on real-time data. It is possible to adjust the variables in this model and watch how any particular eventS (such as a port closure) would affect your system. This virtual sandbox is a playground to test out different scenarios without ever putting at risk your real-life inventory or cash flow.

If the network is large, it can be beneficial to map every segment from start to finish.

While visibility is essential for good risk management, this is something many companies have trouble seeing past their suppliers. With simulation tools you can visualise your network, including your secondary and tertiary suppliers, which are usually buried deep in the structure of your supply chain. Once you know all of your nodes in your network, you can see that there could be failures in the system that you don’t know about at the moment and possibly pass by your planning team.

Returning to a school that has been impacted.Returning to the Disrupted School.

After performing a mapping of your network, your supply chain can be subjected to various forms of chaotic events by running simulations. You may take a simulated hit of an unexpected increase in consumer demand or a key logistical choke point to observe which parts of your business fail. These models indicate where stock could build up and where problems with stock shortages are inevitable when under stress.

Adjusting Inventory and Resource Location

You can use simulation solutions to determine the best allocation of resources (or materials) throughout your network. You can model the cost and/or product availability for your customer with various stocking levels in various locations to achieve a balance. Calculate the total transit times and overall service reliability if distribution centres were to be closer to markets.

Demonstrating how to enhance Collaborative Supplier Planning.

When you’re communicating your virtual awareness with your primary suppliers, you’ve got a connection centered on common goals. Explain to your suppliers how vulnerable aspects of their manufacturing processes affect your product delivery to the end-user. This openness helps to facilitate communication and continues to incentivize your suppliers to invest in their own resilience, benefiting all in the long term.

Read more: Why More UK Travellers Are Choosing Active Winter Breaks

Control of Transportation and Logistics Risk

The transportation sector is one of the most dynamic components of any supply chain, and is particularly vulnerable to weather and infrastructure hazards. The simulations can be used to simulate various shipping routes and different shipping options to see which routes will provide the most protection from these hazards. Test different modes of transport from air to sea, or explore alternative logistics and see the difference in your risk profile in a simulated setting.

Continuous Improvement Cycles

A resilient supply chain is not a single project but an iterative process – models need to be continually updated. Your simulation platform should be a “living tool” that you refer to whenever market conditions move or you add new products to your range. With the consistent simulation, your operating strategies are in sync with the real world.

The future is resilient – and what about the transformation?

Control over your supply chain is the only way to shift from a “defensive” and “reactive” to a “confident” and “forward thinking” position and that is done best with simulation. You now know how these digital tools are like a crystal ball, giving you a glimpse of possible weaknesses in your infrastructure. To start, try modeling one portion of your company, and then leverage those lessons to create more resilient and robust supply chain for the future.