The supply chain is a hot topic to discuss and is an integral part of every business operating in areas such as oil and gas, energy, mining, and manufacturing. The synchronization of a supply chain in line with the demands of the production in any of the industries is a crucial activity that often daunts the end-to-end (E2E) supply chain managers.
Using a unified supply chain platform that keeps track of the entire workflow, from raw material procurement to the finished goods or services, makes supply management easier and more predictive. The advent of digital transformation solves this centralized supply chain management problem using the Digital twins that creates a digital replica of the layers in the E2E supply chain.
Creating a digital twin requires numerous data points collected from field sensors in the IoT network. The role of Digital Twin is visible in improving the operations of the different layers of the E2E supply chain and building a valuable value chain that,
- eliminates preventive maintenance and
- improves the planning and execution of logistics
- material planning
- Centralized warehousing
- Safety planning
- Proactive warehouse stocking
Raw Material Planning and Procurement
The vital layer of the supply chain that provides feeds for the other processes in the industry needs a closer revamp in optimizing the channeling of resources. Procurement and warehousing of raw materials is a costly activity which reflects further as an increase in product cost and lead time between production cycles.
Digital Mirroring of the first layer reduces the redundancy in material movement and procurement proactive management of raw materials possible. It helps monitor raw material inventory, distribution of raw materials among production facilities, and all possible distribution networks for resourcing materials.
A rational approach towards restocking and inventory management puts a cap on purchases and sheds light on the frequency of restocking. It is handy while quoting prices for raw material purchases and always helps strike the best purchase deal.
Machinery Predictive Maintenance
To maintain an active functioning of the production facilities, operation planning based on resources is a daily challenge for the managers. The operation planning assumes an ideal functioning of the production system, but it is not the case in reality.
Using a Digital Twin of the production facility or the line production facility reduces the gray areas in planning, resource allocation, and monitoring the health of the machinery. Any unexpected downtime affecting the production quantity and time leads to an uncertain situation. Digital Twin introduces the habit of predictive maintenance by analyzing the data points collected, thereby proactively eliminating machine downtime.
Logistics planning
Keeping the raw materials or the finished goods deliverable at all times is the ultimate objective of logistics planning. The movement of goods from Point A to Point B in a short time is always a challenge, given a variety of factors behind the scenes of logistics.
Using a real-time logistics system provides a birds’ eye view of the networking of tasks in transferring materials and identifies the checkpoints to look at to speed up the logistics process. Optimization of transportation, effective restocking, and timely delivery of finished goods are the likely outcomes of a fail-safe functioning of the logistics process.
Proactive safety planning
Safety at the workplace is a high-priority concern in the checklist of production planners. Creating a safe work environment resilient to unexpected hazards is necessary to keep the workforce safe and secure.
Building a digital twin resembles the work environment that helps foresee any potential safety hazard and points out any implementation of new preventive measures to ensure a safe environment for everyone at work.
Digital twins can run simulated emergencies and assist safety officers in coming up with an effective escape plan.
Reduce Capex
Digital Twins helps control the capex of the mining site and the powerplant units through active raw materials and machinery management. A centralized business operation platform that is a simple collection of all Digital Twins creates a virtual environment of the physical world that enables seamless team coordination and eliminates any communication lags. It also improves the resilience of the workforce and machinery.
Mining, energy, oil, and gas are Capex-intensive industries, and it is necessary to reduce any unplanned machine or resource downtime that increases the operation cost adding an overhead resulting from malfunctioning of the systems managing the plant operations.