BUILDING RESILIENT SUPPLY CHAINS THROUGH SUPPLY CHAIN DIGITAL TWIN: AN EXPLORATIVE STUDY IN US MANUFACTURING SUPPLY CHAINS
Developing resiliency in supply chains became vital in the recent years due to global diversification and vulnerability to risks. Firms need to identify, evaluate, and mitigate risks in supply chain to maintain continuity and create competitive advantage. Although the problem of supply chain disruptions has existed for a long time, less attention has been given by researchers in exploring the adoption of advanced technologies to build resilient supply chains. This study explored the potential of mitigating supply chain disruptions with the use of Industry 4.0 technologies such as Internet of Things (IoT) and Supply chain data analytics platform which develops digital twin environment for supply chains.
This research gathered expert’s opinion on the resilience capabilities developed in supply chain by digital twin adoption, stages and practices involved in digital twin assimilation through Delphi survey with subject matter experts and supply chain practitioners. Semi-structured interviews were conducted with participants to attain deep understanding on the resilience capabilities gained by digital twin and stages in digital twin adoption. Comparison of the results from Delphi survey and interviews was carried out to synthesize the results to yield a comprehensive understanding of resilience capabilities gained through digital twin and adoption stages of supply chain digital twin. This research has conducted interviews with 21 subject matter experts and completed three rounds of Delphi survey (with participants n = 15, 11, 11 in three rounds respectively) to develop a framework for digital twin adoption to enhance supply chain resilience.
This research determined that digital twin develops real-time monitoring and sensing capabilities, planning and decision support system, and automating decisions and action execution capabilities in supply chain. In addition, digital twin positively impacts resilience elements such as agility, supply chain reconfiguration, robustness, and collaboration in supply chain, which improves the supply chain performance. The results from this study were utilized to develop a framework for enabling supply chain resilience through digital twin. The framework included antecedents, consequences, and various moderators that impact digital twin adoption and diffusion in supply chains. Finally, this research developed a five-stage roadmap for adopting digital twin capabilities in supply chain.