Digital Twin Design and Evaluation for Dynamically Optimised Distribution Strategy in Food Supply Chains: An Exploratory Case Study

Up to 31% of food goods, especially fresh and perishable ones, are wasted during the transportation and storage. Products’ innate susceptibility to spoilage, unexpected issues, and shifting conditions post-strategy commencement are among the manifold reasons for distribution strategy failure in the food supply chain (FSC). Dynamically optimised distribution (DOD) methods can help distribution strategies to adapt and respond to unforeseen changes in today’s complex, connected and interdependent FSC. Building on Digital Twins (DTs) superior connectivity and actuation capabilities, this paper proposes a new DT-based method for DOD in the FSC, from DT design to modelling and evaluation in AnyLogic. Initial simulation results from a UK-based case study show that DT-enabled DOD could bring savings of more than £25,000 in direct costs and 150 tonnes of CO2 per shipment in a typical 20-tonne transport refrigeration unit (TRU). Benefits are compounded by potential fuel savings of up 132 L per year and TRU due to DT-enabled DOD dynamic carrier re-routing capabilities.