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Using IoT for real-time tracking and incorporating data into process digital twins. IoT can significantly identify issues and refine methods in industries such as shipping, storage, and quality control.
On March 23, 2021, a 200,000-ton container ship blocked the Suez Canal, further disrupting the already challenged global supply chain. For several days and weeks, over 360 ships ended up waiting to cross the canal, one of the most critical routes worldwide.
The disruption caused additional inventory shortages, estimated to cost over $9 billion globally.
Technology alone could not predict nor solve the problems that caused the Ever Given container ship to block the Suez Canal. Still, it can help logistics companies and their customers manage their supply chain in ways that can minimize the effect of such types of disruptions.
Digital Twin and IoT technologies can help streamline and manage supply chain operations
Digital twins and IoT systems have the potential to revolutionize and streamline supply chain operations in several ways, addressing challenges and enhancing efficiency. Let’s explore why and how these technologies can make a significant impact:
- Real-time Tracking and Data Integration:
IoT sensors enable real-time tracking of assets, shipments, and inventory. These sensors can monitor temperature, humidity, location, and other relevant parameters.
Digital twins integrate data from IoT sensors and other sources, creating virtual models that mirror the physical supply chain. This real-time data integration allows for better decision-making.
- Identifying Issues and Predictive Analytics:
IoT sensors collect vast amounts of data, enabling the early identification of issues or anomalies within the supply chain. For example, temperature fluctuations in a cold storage facility can be detected and addressed promptly.
Predictive analytics, often powered by AI and machine learning, can analyze historical and real-time data to forecast potential disruptions, optimizing routes, inventory levels, and production schedules.
- Supply Chain Visibility:
IoT and digital twins provide end-to-end visibility into the supply chain, allowing stakeholders to monitor the movement of goods, shipments, and inventory at every stage.
This transparency helps identify bottlenecks, delays, and inefficiencies, enabling quick corrective actions.
- Weather Monitoring and External Data Integration:
IoT systems can incorporate weather monitoring data. This data can be crucial in supply chain planning and risk mitigation, especially for industries susceptible to weather-related disruptions.
External data sources, such as market trends, geopolitical factors, and economic conditions, can also be integrated into digital twin models for more comprehensive decision-making.
- Simulation and Optimization:
Digital twins provide a platform for simulating different scenarios within the supply chain. Users can test changes and improvements virtually before implementing them in the physical world.
(Image Courtesy of Siemens)
Optimization algorithms can be applied to digital twin models to find the most efficient routes, distribution strategies, and production schedules, reducing costs and minimizing disruptions.
- Resilience and Risk Management:
IoT and digital twins enhance the supply chain’s resilience by continuously monitoring and analyzing data. They enable companies to proactively manage risks and respond quickly to unexpected events, such as the Suez Canal blockage.
Technology can help organizations prepare contingency plans
Companies can develop contingency plans and alternative routes based on data-driven insights, minimizing the impact of disruptions on inventory and operations.
In summary, digital twins and IoT technology offer a powerful combination for improving supply chain operations. They provide real-time visibility, predictive capabilities, and the ability to model and optimize the supply chain, eventually helping companies enhance efficiency, reduce costs, and navigate disruptions more effectively. The Suez Canal incident is a distressing example of how these technologies can help mitigate the impact of unexpected disruptions on global supply chains.
Overall, IoT and digital twins of supply chains can improve efficiency, reduce costs, and improve customer satisfaction.
(Main Image by Thomas Ulrich from Pixabay)
The post Minimizing the Impact of Disruptions on Supply Chains with IoT and Digital Twins appeared first on IoT Times.
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