Digital Twin Technology in the Warehouse

Benefits of Digital Twin Technology in the Supply Chain

Through the process of digitally reproducing the warehousing ecosystem, various designs for layouts and processes can be modeled. Models can be represented in 2D with overhead views, and logical (front-facing) views, and in 3D where a user can virtually walk through a facility. This allows an operator to run multiple ‘what-if’ scenarios allowing an operation to:

• Test different scenarios involving automation, labor and equipment
• Compare and analyze multiple potential outcomes
• Test critical paths
• Ensure operational decisions are data-driven and fully tested before committing to adjustments or additions to the warehouse
• Map lifecycle needs effectively

The potential to increase productivity and efficiencies while reducing errors can be significant. Having a virtual twin of your warehouse operations can provide previously unseen opportunities for improvement, growth and underutilized capacity. Digital twin technology can enable:

• Testing alternative travel path directions, as well as entry and exit node placement, to ensure that pick travel and pick time is optimized
• Adding new facility layout elements to measure if efficiencies can be gained; an example would be adding a cross aisle or an automation element
• Performing a storage type analysis to find optimal rack counts and digitally testing rack type combinations and locations to derive optimal solution

Gartner® Highlights Emerging Digital Twin Technology in its Hype Cycle™ for Supply Chain Execution Technologies, 2022

In Gartner’s Hype Cycle™, FORTNA was recognized for delivering digital twin technology with FORTNA OptiSlot DC™ slotting optimization software, which has included digital twin technology since its introduction. Utilizing the science of slotting optimization paired with digital twin technology provides a platform that enables users to visually compare scenarios and metrics, leading to the selection of the best solution to achieve operational goals and objectives.

Slotting optimization benefits include:

• Increased productivity
• Minimized travel, picking and replenishment costs
• Maximum capacity utilization
• Enhanced service readiness
• Improved pick line efficiency and order quality
• Improved ergonomics
• Reduced inventory damages and workplace injuries

A slotting solution combined with digital twin technology can lead to a fully optimized operation by taking all the warehouse variables and characteristics into account. For instance, best practice would be to place high-velocity items closer to the shipping dock since those items will be picked frequently. Another goal could be to build stable outbound pallets during the picking process, reducing potential damages and improving order quality. In this scenario, placing heavy items early in the pick path helps build a stable base with lighter or fragile items picked later. Both objectives are important; but when considering the SKU mix within most warehouses, these goals could be competing as not every heavy item will be a high-velocity item and not every light or crushable item will be a slow mover. Trade-offs and prioritizing objectives are critical to optimize operations and achieve the desired outcome. By creating a digital twin of the warehouse, an operation can test solutions in a virtual environment. These tests produce reports to support the decision-making process, ensuring the selection of the most beneficial solution.

Modeling a digital twin of your warehouse with intelligent slotting optimization software, warehouse professionals have the ability to replicate their warehouse layout including racking and storage media types with exact locations featuring a customized naming scheme, the size of each location, XY coordinates, the pick path throughout the facility (including entry and exit points), as well as the inventory levels of each SKU slotted in each location.

FORTNA Can Help

Launching a digital twin initiative will require the collection and interpretation of a company’s data, leading to a more accurate simulation and testing with more reliable and actionable opportunities. Leveraging the FORTNA team of data scientists, proprietary software and warehousing experts can help an organization create and analyze a digital twin program.

¹https://www.gartner.com/en/newsroom/press-releases/2019-02-20-gartner-survey-reveals-digital-twins-are-entering-mai