Digital Twin - an Exploratory Study on its Opportunities and Challenges from a Supply Chain Perspective
Year: 2021
Type: dissertation
Abstract: At the forefront of the fourth industrial revolution, technologies such as digital twin seek to shift the way industrial companies operate. A digital twin is a virtual replica of a product, system or process. Historically, the focus has been on representing single objects but it is now shifting to interconnected processes, such as supply chains. Advanced versions of a supply chain digital twin can integrate physical and virtual spaces by, in real-time, replicating supply chains digitally. This allows companies to gain visibility of their supply chain and helps them make well informed decisions. However, there is a growing concern that digital twin might just be a buzzword, and that the hype will soon die down. As the technology is relatively young, it is hard to understand its true value. This question was asked by Northvolt, a newly established battery manufacturer in Sweden. We were tasked with investigating this and providing Northvolt with a point of view on how digital twin could benefit their supply chain. The research showed that there is value in digital twin for Northvolt as long as a clear business case can be identified, where no other solution can fulfil the purpose at a lower cost than digital twin. A digital twin could help Northvolt achieve cross-company planning and provide them with material flow visibility, two characteristics they want to realise when the supply chain is operational. In order to successfully implement a digital twin, it is crucial to secure of digital thread of data throughout all supply chain operations. In addition, this includes that the digital thread must be supported by a digital strategy that covers all supply chain entities. Interviews with Northvolt employees showed that Northvolt has very competent digitalisation and IT teams, with the ambition of making Northvolt a fully digitalised company. This entails that they have created a perfect growing ground for digital twin. Moreover, as Northvolt has a high level of vertical integration, it entails that they possess a lot of data in house. However, they must find a way to access the data from external parties in the digital thread if they want an end-to-end solution. Suppliers of raw materials in the battery industry have a varying degree of digital maturity as well as a varied willingness to share data.
Authors: Emma Sandén, Johanna Falk
Language: English
Subfield: Industrial and Manufacturing Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W3164451229