Explore Logistics Automation
Glossary Terms

Handle the changing environment of logistics automation with confidence. Our comprehensive glossary simplifies technical terms and offers precise definitions to help you prepare your company for the future. Learn the language that promotes efficiency and creativity, from the basics of automation to more complex ideas.

Digital Twin Technology

Last updated: August 4, 2025
Logistics Automation
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Digital Twin Technology refers to the creation of a virtual replica of physical supply chain operations using real-time data and AI. In logistics, it enables companies to simulate, analyze, and optimize end-to-end processes such as warehouse layouts, transportation routes, or container movements before taking real-world action. This smart mirroring of operations helps uncover inefficiencies, reduce risks, and make better planning decisions.

How Digital Twin Technology Works?

A digital twin collects live data from IoT sensors, ERP platforms like CargoWise, GPS devices, and RFID systems to reflect current supply chain conditions in a virtual environment. AI and machine learning models are applied to simulate scenarios, as a delay at the port, a warehouse equipment breakdown, or sudden demand spikes. Teams can test the impact of changes (e.g., rerouting shipments or adjusting schedules) inside the digital twin before applying them in the real world. It acts as a dynamic planning and diagnostic tool, continuously syncing with operational data.

Key Benefits for Logistics & Operations Teams

Data Accuracy at Scale

Digital twins integrate data from various systems into a unified model, offering a highly accurate, up-to-date picture of the supply chain ecosystem.

Faster Turnaround Times

With predictive simulations, logistics teams can make faster operational decisions, such as re-routing during disruptions or optimizing dock schedules.

System-wide Visibility

The technology provides end-to-end visibility, from warehouse stock levels to last-mile delivery, allowing better cross-functional coordination and planning.

Reduced Manual Intervention

AI-driven automation within digital twins means fewer manual checks or scenario planning tasks, freeing teams to focus on strategic insights.

Conclusion

Digital Twin Technology gives logistics companies the power to visualize, test, and optimize their supply chain processes in real-time. By blending AI with real-world data, businesses can proactively respond to disruptions, improve accuracy, and enhance efficiency. When integrated with platforms like CargoWise, digital twins become a core driver of agile, data-informed logistics strategies.