What is Digital Twin in Logistics and 3PL?
How to optimise warehousing with the Digital Twin
The logistics sector is facing many challenges due to the changing global environment and needs to equip itself with technological tools that will help it respond quickly and proactively to increasingly rapid changes. The Digital Twin is, and will increasingly become, an ally of industry players.
In fact, according to a recent report by Grand View Research, the global digital twin market will grow at a CAGR of 39.1% from 2023 to 2030¹, with the logistics sector among the drivers of this growth. But what does this mean for logistics operators and 3PL service providers?
Imagine being able to see, analyze, and optimize every aspect of logistics operations in real time, from order allocation to forklifts, material flow, and inventory management.
Digital Twin applications in logistics and 3PL
The Digital Twin is a virtual replication of processes, systems, and physical resources used to simulate, analyse, and optimise business operations.
In logistics, this technology can have a significant impact on the design, operation, and optimisation of the entire logistic infrastructure. You can use it to create virtual replicas of warehouses, distribution centers, cross-docking facilities, and even simulated last-mile deliveries.
The main applications of Digital Twins in the logistics sector include:
Inventory management
- Real-time inventory tracking
- Automatic replenishment forecasts
- Dynamic optimisation of stock levels
Transport Planning
- Adaptive routing based on real-time conditions
- Simulate alternative delivery scenarios
- Vehicle loading optimisation
Predictive maintenance
- Continuous monitoring of asset health
- Early failure prediction
- Intelligent intervention planning
Workforce management
- Optimise shifts based on load forecasts
- Staff training in a virtual environment
- Simulation of various team configurations
In the specific context of 3PL (Third Party Logistics), Digital Twins enable companies to offer their customers value-added services such as:
- End-to-end visibility
- Personalisation of operations
- Optimisation of shared space
- Greater precision in service offerings
However, the real power of Digital Twins lies in their ability to evolve and improve over time by constantly learning from real operational data.
This continuous evolution ensures that logistics operations can quickly adapt to market changes and maintain a competitive advantage in a rapidly evolving industry.
3 Benefits of implementing Digital Twins in Logistics and 3PL
The main benefits of implementing digital twins in logistics are:
1 – Reduced operational costs: Through improved resource management and forecasting of critical issues.
2 – Improved forecasting accuracy: Enabling more accurate planning of operations.
3 – Optimised resource utilisation: Improves overall operational efficiency.
Smart Warehousing with the Digital Twin
The Digital Twin creates a virtual replica of the physical warehouse, allowing processes to be monitored, analysed, and optimised in real time. This technology transforms traditional logistics operations into intelligent and highly efficient systems.
The main benefits are:
- Space optimisation. Simulation of different layout configurations to maximise operational and storage efficiency.
- Real-time monitoring. Up-to-date view of inventory through IoT sensors, reducing errors and stock discrepancies.
- Predictive logistics analytics. Predict potential problems and proactively optimise logistics processes.
- Cost reduction. Virtual testing of changes before physical implementation, avoiding costly mistakes.
- Security and advanced monitoring. Detect anomalies in real time, track assets and personnel, collect and analyse incident and near-miss data.
How to create a Digital Twin in Logistics and 3PL
Creating a Digital Twin in logistics and third-party logistics (3PL) requires a strategic approach and the integration of different technologies. Here are the key steps to developing an effective Digital Twin:
A) Goal setting: establish clear objectives, such as optimizing inventory, improving operational efficiency, and reducing downtime.
B) Data collection: collect historical and real-time data using IoT sensors to monitor operations and performance.
C) Virtual modeling: develop a 3D model of physical assets and integrate real-time data to accurately reflect operating conditions.
D) Technology Integration: leverage technologies such as cloud computing, artificial intelligence (AI), and machine learning to analyse data and optimise operations.
E) Simulation and testing: run simulations to test different operational scenarios and use predictive analytics to identify potential inefficiencies.
F) Continuous monitoring and updating: constantly update the model with the latest data and implement a feedback loop to improve actual processes.
G) Employee training: involve and train staff in the use of digital tools.
The Digital Twin is powered by IoT and AI
UBIQUICOM has developed an ecosystem of solutions based on RTLS technologies for Real-Time Locating of assets and people, which can be integrated with other solutions in the ecosystem.
The TrackVision, Shindan, and SYNCHRO solutions represent the cutting edge of logistics technology, seamlessly integrating RTLS technologies, IoT, and AI algorithms to create Digital Twins not only of warehouses but also of individual machines such as forklifts. Our solutions can interact with the LOCATOR platform, which is unique to our company.
LOCATOR is an advanced platform that collects, processes, and visualizes real-time data from RTLS systems, creating a robust infrastructure for intelligent logistics and industrial operations management. The platform connects IoT sensors, tracking systems, and AI technologies, seamlessly integrating data with Digital Twin models for a unified and dynamic view of the operational environment.
LOCATOR enables our solutions to synchronize information from multiple sources, improving the real-time visibility of physical and virtual assets within a warehouse or industrial plant.