The Role of Digital Twin Technology in Enhancing Supply Chain Resilience and Predictive Risk Management

Digital Twin Technology; Supply Chain Resilience; Predictive Risk Management; Operational Efficiency; Supply Chain Visibility; Thematic Analysis; Real-Time Simulation; Scenario Planning; Organizational Readiness; Qualitative Research

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April 11, 2025

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The increasing complexity and vulnerability of global supply chains have amplified the need for technologies that enable agility, foresight, and resilience. Amid ongoing disruptions driven by pandemics, geopolitical uncertainty, and climate events, Digital Twin Technology (DTT) has emerged as a transformative solution. While extensively explored in the engineering and manufacturing sectors, its application in supply chain management—particularly its influence on resilience, predictive risk management, operational efficiency, and visibility—remains under-researched. This study addresses this gap by exploring how DTT adoption influences these critical dimensions of supply chain performance. Using a qualitative research design, this study employed semi-structured interviews with 15 supply chain and technology professionals across diverse sectors. The participants were selected based on their experience with digital transformation and risk mitigation in supply chain settings. The collected data was analysed through thematic analysis, allowing the identification of recurring patterns and the construction of thematic categories that reflect the role of DTT in enhancing various supply chain outcomes. The analysis revealed five core themes directly aligned with the proposed conceptual model: Real-Time Data Integration Enhancing Visibility, Simulation and Scenario Planning Driving Risk Management, Organizational Readiness and System Interoperability Influencing Operational Efficiency, Predictive Analytics Enabling Faster Disruption Response, and Strategic Agility Facilitating Supply Chain Resilience. The findings support the conceptual pathway in which DTT, characterized by real-time integration, simulation capabilities, and predictive analytics, significantly contributes to improved supply chain resilience, more effective predictive risk management, increased operational efficiency, and enhanced end-to-end visibility. However, barriers such as data interoperability, high implementation costs, and limited digital capabilities among SMEs were also reported. This study makes a theoretical contribution by empirically validating the multi-dimensional impact of Digital Twin Technology as an independent variable influencing four core dependent dimensions of supply chain performance: resilience, predictive risk management, operational efficiency, and visibility. The findings affirm that DTT enables firms not only to react to disruptions but also to anticipate and simulate potential risks, thus reinforcing a proactive and data-driven supply chain strategy. These insights are particularly relevant for policymakers and business leaders aiming to strengthen supply chain infrastructures in volatile environments. The research also highlights the importance of strategic alignment, technological maturity, and investment in digital capabilities to fully leverage the transformative potential of digital twins.