Electronic Commerceresearch report

Digital twin supply chain white paper From Jingdong Logistics

The following is the Digital twin supply chain white paper From Jingdong Logistics recommended by recordtrend.com. And this article belongs to the classification: Electronic Commerce, research report.

Digital twin is a real-time digital model based on physical system. It makes full use of the data of physical model, sensor update and operation history, integrates the simulation process of multi discipline, multi physical quantity, multi-scale and multi probability, and completes the mapping in virtual space, so as to reflect the whole life cycle process of the corresponding physical equipment. As a kind of advanced technology, digital twin technology has broad application prospects. The exploration of Jingdong Logistics in the construction of digital twin supply chain sets a good example for the construction of intelligent logistics in China.

The development and promotion of digital twin depends on the progress of innovative technology. Digital twin supply chain also needs to apply 5g, cloud computing, blockchain and many other “black technologies”. Taking 5g as an example, 5g technology has the great advantages of high speed, large connection and low delay. Based on this, on the one hand, it can effectively apply digital tools to all links of supply chain, such as workshop, warehouse, transportation and distribution, and realize the real-time and efficient data collection of all kinds of personnel, vehicles and equipment; on the other hand, it can support the real-time closed-loop distribution of decision-making and control instructions of digital platform.

Since supply chain management was put forward and developed in 1950s, it has always focused on how to put the right quantity of goods at the right time, at the right price and in the right place to carry out research and practice. From TQM (total quality management), JIT (just in time management) to FMS (flexible manufacturing system) and VMI (supplier inventory management), there is no exception. How to reduce the “bullwhip effect” (that is, the phenomenon of information distortion caused by the failure of effective information sharing in the supply chain, which causes the fluctuation of demand information to pass along the supply chain and enlarge step by step), how to reduce the inventory holding cost, ordering cost and how to minimize the total cost of the supply chain have always been the direction of supply chain management workers.

The new retail and smart retail revolution led by Alibaba, Jingdong and other Internet e-commerce giants has compressed the efficiency of the supply chain to the extreme through artificial intelligence algorithm and infrastructure construction. The traditional supply chain system of “manufacturer brand distributor retailer consumer” has been simplified to “manufacturer brand agent operation logistics consumer” (s2b2c mode), “manufacturer logistics consumer” (c2m mode).

In terms of logistics efficiency, post, Jingdong Logistics, rookie network, Shunfeng, four links and one Da have now covered more than 2800 counties in China. Taking Jingdong Logistics as an example, more than 500 logistics centers and 13 “Asia No.1” large-scale intelligent logistics centers have been built in China, with a warehouse area of over 12 million square meters. Through artificial intelligence drive intelligent business forecasting and replenishment, dynamic routing planning; automation improve the efficiency of warehouse storage and management, realize the 5.3 million SKU inventory turnover days is only 30 days, 24-hour fulfillment order rate is more than 90%. Behind the efficient supply chain management is the superposition of technology and management optimization.

The optimization of supply chain also presents the trend of diminishing marginal utility. The geographical constraints of the physical world, such as distribution distance, warehouse in and warehouse out process, have become the bottleneck to further improve the efficiency of the supply chain.

The emergence of digital twin supply chain will realize the transformation of supply chain management from “function machine” to “intelligent machine”.

Under the framework of traditional supply chain management theory, both the optimal order quantity model and the optimal replenishment lead time model are based on the decision of maximizing the profits of manufacturers, distributors and retailers. Although the “bullwhip effect” in the supply chain can be eliminated as much as possible through comprehensive planning, collaborative planning, forecasting and replenishment, there are still supply chain problems The zero sum game phenomenon of the whole chain profit favoring one over the other. These problems will be solved in the twin of digital supply chain.

In the twin system of digital supply chain, the product is based on customer demand, which avoids the bullwhip effect caused by order. The product after production only needs one physical transfer in the physical space when it is finally delivered to the consumer. All products in physical space are uniquely mapped in the digital world through the Internet of things. Orders and returns between enterprises are realized through digital means, and ownership transfer confirmation is realized by using blockchain technology, without the need for real mobile products in physical space. Because all business activities are operated in digital mode, the cooperation mode, promotion mode and inventory management mode between enterprises can be more flexible.

By using digital supply chain twin, the order cost and transportation cost between enterprises can be completely eliminated, and the economic order quantity model will completely fail in digital supply chain twin. Centralized inventory management can greatly reduce the inventory cost, combined with the ownership transfer based on blockchain technology, to achieve reasonable allocation of inventory cost. The twins of digital supply chain break through the transaction efficiency limit of products in physical space in essence, and enable enterprises to carry out supply chain management activities in a more high-speed, efficient and high-frequency way.

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