Abstract

Today’s supply chain is becoming complex and fragile. Hence, supply chain managers need to create and unlock the value of the smart supply chain. A smart supply chain requires connectivity, visibility, and agility, and it needs be integrated and intelligent. The digital twin (DT) concept satisfies these requirements. Therefore, we propose creating a DT-driven supply chain (DTSC) as an innovative and integrated solution for the smart supply chain. We provide background information to explain the DT concept and to demonstrate the method for building a DTSC by using the DT concept. We discuss three research opportunities in building a DTSC, including supply chain modeling, real-time supply chain optimization, and data usage in supply chain collaboration. Finally, we highlight a motivating case from JD.COM, China’s largest retailer by revenue, in applying the DTSC platform to address supply chain network reconfiguration challenges during the COVID-19 pandemic.

Highlights

  • Given that most iPhones are assembled in China, the Coronavirus outbreak has led to Apple’s global constraints on the supply side

  • Should the effect of this data sharing on the behaviors and costs be studied as well? Should realtime data be shared in the form of statistical information or the original data? How often should real-time information be communicated? How does the automated consensus mechanism provided by blockchain affect the coordination behaviors in the supply chain? These questions need to be answered to improve the application of DTSC

  • Encouraged by the successful application in the supply chain network reconfiguration during the COVID-19 pandemic, JD.COM is enthusiastic about applying the DTSC platform on a large scale to realize the smart supply chain

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Summary

Introduction

Today’s supply chain is becoming complex and fragile. supply chain managers need to create and unlock. Agility is the quick ability to detect changes, collect relevant data, analyze opportunities and threats, make optimal decisions, implement these decisions, Lu WANG et al Digital twin-driven smart supply chain and modify operations (Gligor et al, 2019; Seyedghorban et al, 2020). An intelligent supply chain makes largescale, optimal decisions and uses predictive analytics to protect the supply chain from future risks (Butner, 2010; Wu et al, 2016; Busse et al, 2021). Creating a digital twin-driven supply chain (DTSC) is an innovative and integrated solution for building a smart supply chain (Barykin et al, 2020; 2021; AlMulhim, 2021; Busse et al, 2021; Ivanov and Dolgui, 2021). Managers can simulate and implement decisions in the virtual world before executing them in the physical supply chain.

History of the DT concept
State-of-the-art DTSC
Building a DTSC
Digital twin-driven smart supply chain
Supply chain modeling
Real-time supply chain optimization
Data usage in supply chain collaboration
Case introduction
Background
The DTSC platform for enabling supply chain network reconfiguration
Findings
Discussion
Conclusions
Full Text
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