How Simulation Changes the Game End-to-End in Supply Chain
Simulation is getting more attention in supply chain, given the compounding global impact of geopolitical, technological, and environmental disruption. 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’re doing it.
Companies can visualise, validate, and test designs for distribution centres, warehouses, and supply chain optimisation prior to any implementation, according to TMX Transform, a pioneer in the simulation space.
“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,” Glen Borg, Head of Simulation at TMX Transform, said.
“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.”
This pairing of industry expertise with advanced technology is what differentiates TMX as a supply chain consultant, according to Mr Borg.
“It is not theoretical for us, because our expertise is situated end-to-end across the supply chain, and we can tap into that wealth of knowledge across any node of the chain, for example whether it is route optimisation, assessing options for a warehouse location, or considering order fulfilment during expected surges in demand.”
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.
