Those who thought that the supply chain disruptions were something that would pass as we headed out of the pandemic years are realizing that the disrupters might change, but the level of instability has remained. Shocks to supply chains are not only occurring more frequently, the impact they have is also more intense. Logistics, the original cause of supply chain angst, is now easing but soaring energy costs, geopolitical tensions and weaker and unpredictable demand are some of the new challenges stepping to take its place. No matter how you look at it, managing supply chains is getting even more complex. To stay ahead of the market, management is needing to lean into more advanced tech resources. <h3><b>Turning to Technology</b></h3> There's a critical need for digitized solutions that provide intelligent insights and have the capabilities to show alternative actions, and then adjust and optimize supply chains in real time. The apparel industry has often been accused of being resistant to technology, but a growing number of companies are looking to technology - sometimes in desperation - to help boost flexibility, add transparency and overall mitigate risk. One of the most promising is digital twins, a technology that has long been used in engineering and heavy industry. Adding digital twin capabilities can help build confidence in decision making and in determining when and where the organization makes modifications in response to rapidly changing conditions. <h3><b>What This Could Look Like for Apparel Industry</b></h3> Put simply, digital twins allow companies to create ‘what if’ scenarios of their supply chains without wanting for disruptions to actually happen. This gives them the opportunity to determine what they would do if that scenario actually occurred. By creating several alternatives in advance, brands and retailers achieve greater resilience and flexibility. For supply chains, a digital twin is a virtual replica, comprising potentially thousands of assets, warehouses, logistics and inventory positions. It offers a clear view of the risks facing complex, interconnected supply chains. This allows supply chains to be agile, because risk is identified early and disruption is minimized, or perhaps even averted. Ideally, having a digital twin enables a company to mitigate the impact of macro operational, environmental, and geopolitical changes, as well as being able to adapt to micro disruptions like truck delays, product damages, inventory shortages and missed flights. Today, organizations are expected to produce and deliver products regardless of global shortages in labor or materials, logistics disruption – while also meeting stringent price targets. <h3><b>What a Digital Twin Can Do</b></h3> Digital twins enable brands and retailers to improve many metrics, such as cost, operational efficiency, lead times, and sustainability. The technology enables companies to digitally model, simulate, test and analyze their products, services and systems. Deployed in multiple instances across sourcing supply chains - from design to manufacturing and production - companies can experiment with different scenarios and assess the impact of each decision without real, tangible risk. It allows them to pivot, when necessary. Longer term, it helps them to make risk-free, cost-effective system improvements across the value chain. Digital twins can monitor entire systems and adapt to changes in real-time, as they arise. They can also shift the way that companies deploy employees. <h3><b>Collaboration Counts</b></h3> Since digital twins can be shared with suppliers and other supply chain partners, continuous realignment is possible across every organization and stakeholder, regardless of location. Digital twins can be easily extended across these networks with AI/ML and low-code/no-code scripts that help drive predictive intelligence and automated workflows across the entire supply chain. These models use real-time data from IoT devices, logistics and transportation databases, vendors and suppliers, and user experience to optimize inventory. <h3><b>Pricing Comparisons</b></h3> Brands and retailers can also use digital twins to compare sourcing alternatives. Using a digital twin of its supply chain, a brand or retailer can look at the real impact of price, lead time and other factors when stacked up against other options. Price is typically a factor, but so is lead time, logistics, and how a change to a different country or a different supplier might impact the need to hold more finished goods inventory. Brands and retailers can now use a digital twin of its global network to evaluate the benefits of one or more scenarios and to determine the impact with a high degree of confidence in just a couple of hours. Previously, this would have taken two weeks, and they would have had much less certainty about the evaluation. <h2><b>Potential Speed Bumps </b></h2> Many companies realize the benefits of digital twins, and some are already making moves to implement the technology into their value chains. However typically a lack of management support can stand in the way of this technology being implemented. Like many other forms of digital technology, managing digital twins requires a specific skill set, which means most companies will need to bring in new talent with experience in running these systems. Otherwise they need to upskill existing employees so that they have greater expertise in blockchain, data capture, cybersecurity, embedded software, hybrid cloud systems and other advanced technologies. However even here technology is evolving and we’re seeing the introduction of more low-code scripts to automate workflows. <h3><b>Game Changing Advantages</b></h3> Digital twins can greatly reduce the uncertainty that exists in supply chain operations today. Companies can use digital twins to increase their competitive edge through efficiencies gained from better insight into sourcing, manufacturing, inventory locations and logistics tracking. They can also help the brands and retailers in reducing production costs by automatically alerting all stakeholders to issues and collaboratively resolving excursions to eliminate waste. Digital twins can aid companies to better innovate and reduce risk by identifying points of weakness and driving strategic initiatives to reduce cycle time. Another advantage is increased transparency. A digital twin can help assure quality and compliance standards throughout the entire chain of custody. By modeling end-to-end supply chain digital twins, brands and retailers, along with their suppliers and distributors can quickly see the consequences of unplanned disruptions in the supply chain and make timely contingency plans.