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According to an analysis report, the digital twin market was estimated at almost USD 7 billion in 2022 and is set to peak at over USD 73 billion by 2027. But what is a digital twin, and how can your warehouse benefit from it? We also reveal the other industries and establishments leveraging this mind-blowing innovation.

How does NASA ensure its exploration missions stay safe and enjoy high chances of success? For decades, the agency has been creating digital versions of its spacecraft for simulated astronaut training to predict their performance in various situations and identify pain points before building the actual vessel. This is an example of digital twin technology.

A digital twin is what its name suggests–a digital duplicate of a concrete object or space. To accomplish this, the real-life object is fitted with sensors that relay information about its capabilities and performance. All this data is processed and applied to the digital twin, which you can now use for in-depth testing. This way, you can perform simulations, study potential problems, and formulate solutions without harming hardware.

Advantages of creating a digital twin

Companies worldwide use digital twin technology to boost workflows, logistic networks, building operations and many more. This comes as no surprise, especially with these benefits:

• Cost efficiency

Imagine the cost of multiple testing on physical models. This equates to procuring materials, labor-intensive product building, securing a physical space for trials, and hiring testers. But with a digital twin, you can conduct experiments as often as you want without breaking the bank.

• Improved products

Using digital twins leads to better research and development because of the available data. This technology lets you fine-tune your product before you begin large-scale production.

• Better processes

Improvement doesn't end with your product. Digital twins can also replicate and keep track of manufacturing systems, aiming to optimize resources and the workforce every step of the way.

• Environmental care

Because you can conduct virtual testing, you avoid using materials that end up as waste. But digital twins go a step further by guiding manufacturers on managing end-of-life products. This technology can determine which materials can be salvaged and recycled and what other measures to take to minimize their environmental impact.

• Versatile uses

While digital twin technology currently thrives in sophisticated applications, such as transportation and manufacturing, tech companies are working to make it simpler and more affordable for smaller companies.

5 reasons why your warehouse needs a digital twin

A warehouse is a hotbed of activity–from loading docks and forklifts to employees milling about to accomplish tasks. Its digital twin keeps you on top of logistics, worker safety, and equipment optimization. Here are other ways this tech helps you achieve warehouse efficiency:

1. Maintain productivity despite labor gaps

Companies continue to suffer from a lack of warehouse workers. According to the U.S. Department of Labor, there were 482,000 job posts in transportation and warehouse businesses in the fourth quarter of 2022. Aside from the labor shortage, employees in these sectors are prone to quitting and layoffs. 

While automation or robots can fill labor gaps, a digital twin can do a deep dive into your complex operations, determining areas that need support and improvement without disrupting processes. This way, you can better fulfill orders to gain customer satisfaction.

2. Enhance machine efficiency

With the rise of artificial intelligence (AI) and machine learning, more and more warehouses are using robots and smart equipment to streamline workflows. Because automation requires significant capital, a digital twin can give vital information that helps you maintain and maximize hardware assets. A twin can also coordinate the movement of machines and people, minimizing the risk of accidents. By running a digital simulation, you better assess what's happening on the floor, letting you pivot and adjust before problems occur. 

3. Beef up the distribution system

Warehouses are part of elaborate supply networks. To cope, operators are establishing designated areas within existing facilities for efficient operations. Today's larger distribution centers supply smaller warehouses near customers for faster deliveries. Because of these challenges, you need to be vigilant about inventory, where you store it, and how much you should keep in each location. 

A digital twin becomes crucial in coming up with a storage strategy. By getting a clear view of your network and using scenario models, you can predict sales, conduct marketing campaigns, and sell off seasonal goods on different platforms.

4. Boost resilience

Everything in the warehouse is interconnected–from a broken conveyor to singular product damage. You can shrug these off and endure their possible short-term effects, but with digital twin technology, you can better grasp how tiny incidents impact the bigger picture. 

Every decision, accident, or measure has both benefits and risks. With a digital twin, you simulate almost all potential incidents like weather changes, late deliveries, and price fluctuations. When you know how occurrences–from the small to the significant impact you warehouse, you can prepare for them and protect your assets.

5. Refine your supply chain

The COVID-19 pandemic has shown that widespread delayed shipments are possible, leading to a supply shortage. Other factors that impact today's supply chain are global conflicts, compliance issues, and environmental concerns. Despite these risks, how can your warehouse procure materials and meet demand? With a digital twin, you can plan for a supply chain strategy that not only lowers costs but is also adaptable.

Where else is digital twinning thriving?

By melding components of AI, virtual and augmented reality (VR/AR), and the internet of things (IoT), digital twins are making waves in these industries.

• Automotive manufacturing

Car manufacturers like Ford create several digital twins for all its vehicle models before they go into production. Why so many twins? Each involves a facet of design and functionality to ensure all bases are covered. The company also develops virtual replicas for their manufacturing facilities and procedures.

• Healthcare

Patients and their organs can have digital twins to test treatments before applying them. Other projects are even more ambitious, including making a digital twin of the human brain to determine medical interventions and replicating an entire human to formulate customized therapy and predict the effects of lifestyle habits.

• Energy

The energy sector gets a boost from digital twinning by increasing productivity through predictive maintenance, energy optimization, and remote monitoring. GE's wind farm has increased its output by 20% because of this technology.

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