Digital Twins for the Circular Economy

The article focuses on the project to develop a supply chain management information system using a digital twin for the maritime transport chain. Digital twins reflect real objects and processes in a virtual environment, which enables analysis, modelling and optimisation of supply chain operations. The author describes the main stages of the project, including requirements definition, system architecture development, implementation and testing. Particular attention is paid to the benefits of using digital twins in supply chain management, such as increased efficiency, reduced risk and improved forecasting. The results of the study show the potential of digital twins to optimise supply chain management and increase the competitiveness of companies. The article presents an approach to building a new model of interaction and systematic optimisation of business processes based on digital technologies at all stages of supply chain formation, which ensures the creation of a digital twin for the maritime transport chain. In order to improve supply chains, a digital twin has been proposed, which opens up great prospects for the management of logistics processes and the exchange of information between supply chain participants. This paper presents a framework for an integral Digital Supply Chain Twin (DSCT) capable of covering the entire transport chain. The proposed information system based on the use of the DSCT provides a number of improvements throughout the supply chain, as well as the ability to model and evaluate different scenarios for the supply chain. This creates opportunities to reduce the cost of organising and coordinating transport, improve the quality of transport and logistics services and make them more reliable by identifying potential problems at an early stage. The article analyses the main information technologies that facilitate the use of DSCT as a useful and reliable tool.

Biopharma Is Going Digital … Bit by Bit

• The objectives of this study match the CIE content as it provides academcians and practioners with innovative and helpful information on advanced computing technology in the industry. • Foundation models are large-scale machine learning models that have been trained on large amounts of data to perform a variety of tasks. • FMs are used to support management and operations in supply chain and logistics management and operations. • The paper is based on research conducted by the authors with several Italian and European organizations under a grant from the European Union's Next GenerationUE initiative. • The paper concludes with a real-world industrial case study to further substantiate these claims. The organizational environment is subject to constant change, driven by rapid technological progress and the advent of Industry 5.0. This dynamic scenario compels authors and practitioners in the fields of logistics and supply chain management and operations (LSCM) to explore the transformative impact of foundation models (FMs) and artificial intelligence (AI) on these areas. The integration of AI FMs, coupled with digital twins (DT) and cyber-physical systems (CPS), will not only optimize current processes but also fundamentally reshape the future of digital engineering (DE) in LSCM. Understanding the opportunities and challenges with FMs is critical to the strategic positioning in an ever-evolving marketplace where Industry 5.0 technologies drive innovation and efficiency. Organizations can gain a competitive advantage by analyzing the opportunities and risks of integrating FMs into LSCM operations and leveraging their ability to improve decision making and enhance predictive analytics and real-time monitoring through DT and CPS. This paper serves as a comprehensive and informative guide for evaluating the transformative potential of FMs in redesigning LSCM operations in the context of Industry 5.0, highlighting critical applications, exploring potential benefits and challenges, and pointing to upcoming innovations such as AI-driven DT and smart cyber-physical systems that are revolutionizing supply chain (SC) processes. The detailed analysis based on the Supply Chain Operations Reference (SCOR) components shows that FM-based solutions, supported by AI and Industry 5.0 technologies, can significantly improve LSCM business processes. This paper presents an integrated functional framework and technical architecture for implementing FM in LSCM, emphasizing the role of DT and CPS in enabling smart, adaptive, and resilient SC. The paper concludes with an industrial case study that further substantiates these claims and shows the practical application of FM in a shipbuilding organization. The case study describes successful approaches to implementing and effectively utilizing AI and DT. It provides a practical, functional, and technical framework for applying the transformative impact of FMs on LSCM within the Industry 5.0 paradigm. This integration highlights the synergy between FM, AI, DT, and CPS and paves the way. It paves the way for a more innovative, sustainable, and competitive management of supply networks and their operations.

Purpose – to review literature about circular supply chain (CSC) theories, methods, frameworks, and appli-cations in industries. For organizations to incorporate circular economy (CE) principles in their supply chain frame-work are required to address the main circular processes. Previous attempts of frameworks aim at the comprehensive approaches or too theoretical for organizations to use them. The objective is to propose a theoretical framework that allows organizations to prioritize main circular processes in order to start improving or introducing new circular pro-cesses in the supply chain. Research methodology – the methodology of the article consists of a literature review and information synthesis for the formulation of the theoretical framework. Web of Science database was used for literature review with the key words of “circular economy supply chain”. Findings – formulated theoretical CSC framework contributes to the CSC research field with a more organization-ori-entated approach. Research limitations – the proposed framework is limited through only theoretical propositions and is more limited in its scope compared to other researchers. Practical implications – organizations in the supply chain such as manufacturers can understand through a framework main processes required for CSC. Originality/Value – compared to other researchers this work emphasizes and proposes CSC development from an organizational perspective rather than from a holistic approach.

Given the high mortality rate from cardiovascular diseases and the need to transfer medicine to a more high-tech level of development, the authors propose the use of digital twin technology for the diagnosis and treatment of heart diseases. As a digital twin of the human heart, it is proposed to use the combination of an equivalent electric heart generator and the of D. Noble computer heart model within the subsystem for supporting medical decision-making. The use of such digital twin will make it possible to reliably conduct non-invasive cardiodiagnosis to select drugs within the treatment regimen.

Aim. Development of the author’s concept of increasing the efficiency of financial risk management on the basis of application of the technology of creating and using the digital twin of the enterprise.Objectives. To formalize the problems of existing approaches to solving the problems of financial risk management of enterprises of the real sector of economy; to identify trends in the development of digital twins, to formulate the advantages of their practical application and to give the author’s interpretation of the concept of “digital twin of the enterprise”; to build and substantiate a multilayer system of indicators of the digital twin of the enterprise in the context of improving the efficiency of financial risk management; to develop the principles of building a digital twin of the enterprise, focused on solving the problems of financial risk management.Methods. The research was carried out on the basis of system approach, in the process of realization of which the methods of synthesis, logical comparative, factor and graphical analysis, basic provisions of financial risk management and the results obtained in domestic and foreign scientific literature on the problems of realization of approaches and methods of financial risk management were used.Results. The author’s concept of increasing the efficiency of financial risk management based on the application of new technologies for creating digital twins is proposed. In particular, by means of formalizing the problems of existing approaches to solving the problems of financial management, identifying trends in the development of methodology and technologies for creating digital twins, the idea of increasing the efficiency of financial risk management on the basis of creating a digital twin of the enterprise is outlined. The multilayer system of indicators defining the structure of this digital twin is proposed and substantiated, the tasks are defined and the principles of its construction oriented to solving the tasks of financial risk management are developed. The financial kernel of the digital twin of the enterprise is constructed, containing the contours of formation of financial indicators common for different enterprises, determining the achievement of the objectives of financial risk management and its efficiency. The qualitative substantiation of increasing the efficiency of financial risk management with the application of the methodological basis for the creation and use of digital twins proposed in the article is given.Conclusions. Conceptual provisions of creation and use of digital twins for the purposes of financial risk-management, given in the article, create a theoretical and methodological basis for increasing the efficiency of financial risk-management taking into account the use of new digital technologies and can serve as a basis for practical construction of effective systems of financial risk-management at enterprises of the real sector of economy.

Threat modeling is a critical proactive security technique for identifying threats and determining mitigations. However, traditional approaches often fall short for Industrial Control Systems (ICS), which automate operations in domains like manufacturing and energy and are a subset of Cyber-Physical Systems (CPS). CPS integrates computation, networking, and physical processes, with ICS requiring specialized cybersecurity approaches due to its operational and safety-critical nature. This study explores the use of digital twin technology as a promising cybersecurity tool for ICS, enabling testing and analysis without disrupting operations. By examining the capabilities of digital twins in analysis, simulation, and replication, the research evaluates their potential to enhance threat modeling across the CPS life-cycle. Insights from the European Cyber Security Organisation (ECSO) Technical Paper on Cybersecurity Scenarios and Digital Twins guide the exploration of their role in threat modeling. The study addresses four research questions: 1. What purposes do digital twins serve in cybersecurity? 2. What benefits do digital twins offer in cybersecurity? 3. How can digital twin technology be leveraged for threat modeling? 4. What advantages can the use of digital twins bring to threat modeling? Our findings reveal that digital twins enhance ICS threat modeling by enabling continuous, dynamic, and autonomous assessment, offering valuable insights for advancing cybersecurity strategies in ICS, CPS, and related domains.

Transitioning to a Circular Economy (CE) is considered the most promising way to achieve economic and environmental sustainability. However, companies and governments are faced with challenges in redesigning existing linear supply chains (SCs) into circular supply chains (CSCs). Although previous research has tried to identify challenges in the implementation of CE in their own specific contexts, the literature lacks a systematic identification and validation of challenges to transition to circular supply chain management (CSCM). This study identifies the key barriers to the redesign of SCs into CSCs in the global manufacturing sector and develops a broad classification to facilitate their mitigation. An extensive review of the state-of-the-art literature on CSCM identified a list of 20 barriers plaguing manufacturing firms and impeding the transition of their linear SCs into CSCs. The barriers were analysed through 200 responses received from experts in the fields of CE and supply chain management using a questionnaire-based survey. The findings of the study suggest significant restraints towards CSCs implementation owing to the lack of incentives and policies, and product complexity. Moreover, the study of the broadly classified barriers such as standardisation and legal barriers, and financial and economic barriers indicate substantial similarities between the results and findings of the extant literature thereby implying significant alignment between the industry and the academia regarding the subject. This work is useful in formulating strategies to redesign CSCs, and helps researchers and practitioners to understand the challenges in implementing CSCs.

The new economic context has brought new challenges to the supply chain and has increased the complexity of its processes. The digitalization; as one of these challenges, is a rapidly evolving paradigm that transforms supply chains by integrating data and communication technologies to optimize operations, enhance sustainability, and improve overall performance. Digital twin technology emerged as one of the most promising digital tools that offer an innovative approach to supply chain management. However, the adoption of digital twins in the supply chain is still in its early stages. Previous research papers presented limited overviews of the applications of digital twin technology in supply chain systems that need to be extended, as it is inevitably a work in progress. In this matter, we conducted a systematic literature review built upon 31 articles to determine the applications of supply chain digital twins (SCDT). This study is divided into three core themes; the first is a comprehensive review of the paradigm of digital supply chain with a focus on digital twin technology and its primary features. The second theme presents an analysis of the 31 papers where we explore the different purposes of SCDTs and their integration. in the third theme by using VOSviewer to conduct a network analysis. We aim; through this paper, to contribute significantly to the supply chain management field by summarizing and analyzing existing research and developments in the applications of digital twins in the different areas of supply chains.

Geometric parameter updating in digital twin of built assets: A systematic literature review

Digital Twins (DTs) are revolutionizing supply chain operations by creating dynamic digital replicas of physical assets, processes, and systems. This paper explores the integration of Artificial Intelligence (AI) with Digital Twins to bridge the physical and digital worlds in supply chain management. By leveraging AI, Digital Twins can analyze real-time data, predict future events, and optimize decision-making processes. This synergy enhances operational efficiency, reduces costs, and improves responsiveness to disruptions. We delve into the architecture of AI-driven Digital Twins, highlighting their components, data flow, and interaction mechanisms. Case studies across different industries demonstrate the practical applications and benefits of this technology. The discussion includes challenges such as data privacy, integration complexity, and the need for standardized protocols. Future research directions focus on advancing AI algorithms for better predictive capabilities and creating more robust, scalable Digital Twin frameworks. This paper underscores the transformative potential of AI-enhanced Digital Twins in creating agile, resilient, and intelligent supply chains.

PurposeThe purpose of this paper is to unveil the circular economy (CE) values with an ultimate goal to provide tenets in a format or structure that can potentially be used for designing a circular, closed-loop supply chain and reverse logistics.Design/methodology/approachThis is desk-based research whose data were collected from relevant publication databases and other scientific resources, using a wide range of keywords and phrases associated with CE, reverse logistics, product recovery and other relevant terms. There are five main steps in the reformulation of CE principles: literature filtering, literature analysis, thematic analysis, value definition and value mapping.FindingsIn total, 15 CE values have been identified according to their fundamental concepts, behaviours, characteristics and theories. The values are grouped into principles, intrinsic attributes and enablers. These values can be embedded into the design process of product recovery management, reverse logistics and closed-loop supply chain.Research limitations/implicationsThe paper contributes to the redefinition, identification and implementation of the CE values, as a basis for the transformation from a traditional to a more circular supply chain. The reformulation of the CE values will potentially affect the way supply chain and logistics systems considering the imperatives of circularity may be designed in the future.Originality/valueThe reformulation principles, intrinsic attributes and enablers of CE in this paper is considered innovative in terms of improving a better understanding of the notion of CE and how CE can be applied in the context of modern logistics and supply chain management.

Purpose This study explores how digital twin technology boosts operational efficiency within supply chains. It identifies key attributes influencing logistics and performance, synthesizing existing research insights and highlights knowledge gaps to guide organizations considering digital twin adoption. Design/methodology/approach The research involved a systematic literature review, focusing on articles from 2014 to 2024, sourced from the Science Direct database. Keywords related to digital twins and supply chain management informed the selection criteria. Findings Findings reveal significant benefits from digital twin integration, including process optimization, error reduction and shorter production cycles (15–25%). Energy consumption and downtime decrease by 15–20%, while productivity improves by up to 25%. Additionally, cost savings of up to 30% are achieved, along with enhanced flexibility, responsiveness to market changes and resilience to disruptions. Collaboration among stakeholders within the supply chain is also strengthened. Originality/value This research positions digital twins as a strategic tool for supply chain optimization. It offers practitioners and researchers a robust conceptual foundation to assess their impact on operational efficiency and paves the way for further exploration in this transformative area.

Revisiting circular economy indicators: A circular supply chain perspective

The modern world is undergoing rapid changes, driven by both technological progress and dynamic political and economic processes. In this constantly changing environment, adaptability and flexibility have become critical criteria for business survival, especially in secondary sectors such as transport and logistics. These industries are increasingly faced with the urgent need to optimize financial flows in conditions of high uncertainty and market volatility. In parallel, the pressure for transparency, cost-effectiveness and rapid response in the decision-making process is growing.One of the most promising solutions to these problems is the integration of digital twins into the planning and execution of logistics processes. Digital twins are dynamic virtual models that reflect real objects, systems and processes in real time, allowing companies to simulate operations, track changes and predict results with a high degree of accuracy. While the use of digital twins has been widely studied in engineering, manufacturing, and supply chain optimization, their application to financial management in logistics companies remains relatively underdeveloped and understudied.This paper addresses this critical gap by proposing a conceptual model for integrating digital twin technology into financial decision-making processes in logistics. It explores how digital twins can be used to dynamically monitor costs, simulate cash flows, and increase transparency and traceability of financial transactions. With these capabilities, logistics firms can achieve better cost control, reduce inefficiencies, and improve overall financial performance. The novelty and significance of this study is due to the lack of standardized approaches to implementing digital twin technologies into financial workflows. To address this issue, the paper also provides a review of practical examples and current implementations of digital twins by logistics companies around the world, focusing on the measurable impact of such integrations on financial performance and strategic agility.Key words:logistics process, financial flows, digital twin, cost planning, business process.