A digital twin points to the most obvious gains
A large Danish company is taking the leap from manual processes and Excel sheets to a 'digital twin' of the supply chain. It forms the basis for agility and transparency throughout the organization and the supply chain - and fuels savings of 5-7%.
Transparency and agile decision-making are beneficial for a company that needs to adapt to an uncertain and volatile market. Many companies face the fact that their existing IT systems (and associated manual processes) are not able to provide the necessary transparency and overview. kaastrup|andersen has helped a large Danish company to identify the requirements for an IT system which ensures just that, enabling the company to adapt to new market situations.
Read the whole case and get an insight into the digital journey as well as the many benefits the company reaps.
The company's ERP system covers the operational planning needs, but the system cannot ensure coordination between all levels of planning: the strategic, tactical, and operational planning. This means that manual processes using PowerPoint and Excel create bottlenecks everywhere: the internal coordination suffers, there is great uncertainty about the data validity and the efficiency of the task solution is low - with both errors and low productivity as a result.
At the same time, the company wants to optimize the operation to a degree that the manual and semi-automated solutions cannot accommodate. The optimization requires a much higher degree of transparency and oversight, combined with better IT support of the many processes. The end goal is to be able to plan and save costs through a new advanced integrated system that covers all planning levels, provides high transparency, and allows for better predictability through modelling of multiple scenarios in operation.
Therefore, the company has chosen to implement an advanced planning system. The system is based on a so-called 'digital twin' of the physical supply chain. Briefly explained, a digital twin is a digital copy of a physical object, system, or organism; and the twin offers the opportunity to try out different scenarios, processes, and solutions, prior to implementation in the real world. The digital twin is based on a mapping of the most important parameters in the company's value chain and ensures that all elements are considered when the company changes processes, systems, or dependencies.
Of course, the development of the digital twin requires a complete overview of the current supply chain. It is also crucial that the company has made it clear what decisions the system needs to support, and thus which data is needed, and not least which processes are be supported and adjusted if need be.
After the mapping of system requirements and analysis and identification of the value chain, kaastrup|andersen delivered a business case, which among other things describes the expected savings of 5-7% of the variable costs, enabling agile decision making and increased transparency in the plans. The business case thus created the decision basis for the further investment. It became clear that the investment will pay itself back by a factor of 7 within two years. In addition to a sound decision basis, the business case also sharpened the company’s focus on ensuring data quality and provided the opportunity for a thorough review of the current processes, paving the way for the new future planning processes.
The company now has the foundation to implement the digital twin and start realizing the many benefits that the overview and transparency will bring.
kaastrup|andersen was responsible for the program management of the project.
Is your company ready to start the digital journey, optimizing via a digital twin? Do you have complete control over how you get here, ensure the correct basis and what it requires? We can help you find out if this is a good idea for your business.
Give Lars Glowienka a call on +45 70 27 77 19 or send an email to firstname.lastname@example.org, so that together we can look at how digitalisation can strengthen your company.