What is a digital twin
A digital twin is a virtual representation of a real object or process. In logistics, for example, this could be a truck equipped with sensors. These sensors collect data such as the temperature in the cargo hold or fuel consumption. This data is then transmitted in real time to the digital twin, which evaluates and analyzes it. Processes can then be optimized on the basis of this analysis, for example by driving the truck on a more efficient route or adjusting the temperature in the cargo hold. The Internet of Things (IoT), cloud computing and artificial intelligence (AI) play an important role here.
How a digital twin works
Data is collected
The foundation of a digital twin is data. Real-time and historical data is collected from a variety of sources, providing comprehensive insights into shipments, transportation routes, warehouse activity, inventory levels, demand forecasts and other relevant logistics data. This data forms the backbone for creating a virtual model that mirrors physical logistics assets, processes or systems.
A virtual model is created
The data collected is used to create a virtual model of the logistics operations. This virtual model can represent the entire supply chain or specific segments of the logistics operation, depending on the logistics company’s unique requirements. It provides a digital representation of physical assets, processes and systems, enabling logistics companies to gain a holistic view of their operations.
Situations are simulated and analyzed
The great strength of digital twins lies in their simulation and analysis capabilities. The virtual model is used to simulate different scenarios, such as what-if scenarios, to evaluate the impact of changes in logistics operations. Through appropriate analytics and AI algorithms, logistics companies can test different strategies and optimize logistics operations in a virtual environment before implementing them in the real world.
Processes are monitored and optimized
The digital twin continuously monitors logistics operations in real time and compares actual performance with the virtual model. In case of deviations or exceptions, it issues alerts and notifications so operators can take immediate corrective action.
Optimize logistics efficiency and supply chain through the digital twin

Competitive in the long term thanks to the digital twin
Digital twin technology has proven to be a powerful tool for optimizing logistics operations. By leveraging real-time and historical data from multiple sources such as sensors, devices, systems and external data points, digital twins are changing the landscape of logistics operations. Overall, therefore, the use of digital twins in logistics holds tremendous opportunities for companies of all sizes – from small startups to global corporations. It is therefore likely to become an increasingly important component of logistics management in the coming years.