TMX Transform says generative AI and simulation are making more noise in supply chain, given the compounding global impact of geopolitical, technological, and environmental disruption.
It notes the mandate has never been clearer for organisations to transform their supply chains, and simulation, which replicates real-world environments in a digital environment, is one way they are doing it.
Simulation is an incredible technology, but it is not an ‘off-the-shelf’ product or a ‘slap-on’ service. The value and impact of simulation always depends on the client and what business problems they need to solve. We always start with the problem – not the solution.
Companies can visualise, validate, and test designs for DCs, warehouses, and supply chain optimisation prior to any implementation, according to TMX Transform, a pioneer in the simulation space.
Like most advanced technology, simulation is valuable when it is created and operated by subject matter experts, who know the technology in and out, but can also contextualise and interpret the outputs and scenarios to clients, because they have been on the warehouse floor themselves.
The complexity of supply chains has been increasing for years, but the solutions and ways clients can tackle that complexity may not necessarily get the same attention. Nonetheless, businesses need a data-informed approach to DC design that reflects real operations, rather than using averages to predict requirements.
Simulation, along with augmented reality (AR) and virtual reality (VR), equip clients with insights into DC operations and greenfield facilities. Simulation can be used for:
- Network performance optimisation – identifying efficient network configurations that minimise costs and maximise service levels through simulation modelling and synthesising demand.
- DC optimisation and operations validation – creates virtual representations of manual and automation DCs to assess performance and to identify gaps, potential issues, and effectiveness of operations.
- Automation feasibility validation – creates models of real-world processes through simulation to evaluate the impact of automation on productivity, efficiency, and cost.
This article was written by Joseph Misuraca and originally published by MHD Supply Chain on January 25, 2024.