DHL: Digital Twin Report for the Logistics Industry

For centuries, people have used pictures and models to help solve complex problems. Great buildings first took shape on architects’ drawing boards. Over time, our modeling capabilities have become more sophisticated. Computers have replaced pencils, and 3D computer models have replaced 2D drawings. Advanced modeling systems can simulate the operation and behavior of a product as well as its geometry.

But until recently, there has been an unbridgeable gap between models and reality. No two objects are truly alike, even if they are built from the same set of drawings. Computer models do not evolve as parts wear out and are replaced, or to adapt to changing needs.

That gap is now starting to close. The recent emergence of digital twins, driven by advances in the Internet of Things (IoT), big data, artificial intelligence, cloud computing, and digital reality, heralds a turning point—one where the physical and digital worlds can be managed as one. We can interact with the digital counterparts of physical things just as we interact with the things themselves, even in the 3D space around us.

Led in particular by the engineering, manufacturing, automotive, and energy industries, digital twins are already creating new value. They are helping companies design, visualize, monitor, manage, and maintain assets more effectively. They are unlocking new business opportunities, delivering advanced services, and generating valuable insights from operational data.

As logistics professionals, we have been thinking about how digital twins will change the traditional supply chain and how the logistics industry can adopt digital twins to improve its own processes.

Looking ahead, we believe that the adoption of digital twins across industries will lead to better decision making in the real world. This, in turn, will drive significant changes in the operation of supply chain and logistics processes.

In the logistics industry itself, digital twins will extend the benefits of IoT already being applied today. They will provide deeper insights into the planning, design, operation and optimization of supply chains, from individual assets and shipments to entire global supply networks.