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DIGITAL TWINS & WAREHOUSE OPTIMISATION: VIRTUAL MEETS PHYSICAL

Logistics & SCM

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October 2025

Imagine running a full warehouse but virtually. Welcome to the world of digital twins, where the physical meets the virtual in logistics operations. For NICDC Logistics Data Services (NLDSL), this isn't sci fi it's our backstage of warehouse intelligence, looming large in India's logistics future.

- An article by Arvind Devaraj, COO, NLDSL

DIGITAL TWINS & WAREHOUSE OPTIMISATION: VIRTUAL MEETS PHYSICAL

A WAREHOUSE'S DIGITAL SHADOW

A digital twin is nothing more mysterious than a warehouse recreated virtually. Every rack, every flow of goods, every piece of equipment has a counterpart in the model. Sensors feed live data into it, so the twin evolves with the real thing.

The value lies in what you can do inside this shadow world. Suppose you're considering shifting racks, adding picking lanes, or adjusting forklift routes. Instead of risking disruption on the floor, you try it in the twin. If it works, you roll it out. If not, you reset with no harm done. It gives managers room to experiment; something warehouses rarely allow in the real world.

THE BUSINESS IMPACT: BLENDS OF DATA, AI, AND SIMULATIONS ON THE GO

Digital twins across the globe are changing logistics. Consider the following:

Management can virtually experiment with operations at no risk, optimizing staffing, inventory, and even racking layouts. Simulation of operations become unlocked. Predictive analytics makes guesswork a thing of the past.

CEVA Logistics in Germany, and other similar trials, are designed to lower flexible overheads during peak demand.

Digital twins even help mitigate fuel usage and emissions during warehouse logistics, harmonizing sustainability with other business objectives. Meanwhile, India's logistics ecosystem is awakening to this paradigm. Nestlé India's Bhiwandi distribution center is now running a digital-twin-enabled, Al-powered, paperless facility one of the first in the country.

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