Value Chain Digital Twin by BCG X BOX 5 Seven key benefits of Value Chain Digital Twin by BCG X FIGURE 3 Advanced simulation and scenario planning abilities EBITDA improvements and reductions in inventory levelsAI-based forecasts A 20–30% improvement in forecast accuracy to maximize value Smart alerts Automated advance warnings of potential disruptions to manage risk 360-degree transparency on procurement spending Cost reductions of 3–6% through holistic portfolio optimization even in mature procurement organizationsAutomated decision-making Overall cycle planning times reduced by 85% Smart resource allocation Fewer project delays and lower cost overruns Accelerated deployment within and across supply chain participants Accelerated deployment and value delivery in almost any client infrastructure Source: Schuster, R. L. Mitjavila and C. Penazzo. (2024). Using Digital Twins to Manage Complex Supply Chains. BCG.This platform uses AI, simulations, scenario modelling and digital data platform techniques to create end-to-end visibility across the internal supply chain and third parties. This capability was created for complex project supply chains (e.g. energy, heavy industries and infrastructure) which have an acute need to manage a wide range of suppliers to drive on-time, on-budget execution. It allows businesses to: –Enable accurate planning that optimizes profit and stock –Improve supply management and reduce costs –Anticipate execution risks and mitigate delays –Allocate resources effectively to maximize value –Alleviate supply chain disruptions, generating scenarios that allow for optimized responses to any situation – resulting in a more resilient and flexible supply chain This solution enables better decision-making, providing users across all levels of the organization with superior insights. Organizations leveraging this technology have reported: –A 15% reduction in inventory level –A 3–6% reduction in costs –A 20–30% improvement in forecast accuracy –Reductions of 50–80% delays and downtime Source: Schuster, R. L. Mitjavila and C. Penazzo. (2024). Using Digital Twins to Manage Complex Supply Chains. BCG. The TradeTech Paradox: Connectivity Amid Fragmentation 15

The TradeTech Paradox Connectivity Amid Fragmentation 2026