Publication

Supply chain digital twin design and implementation at scale: A case study at the Ford Motor Company and generalizations

Dmitry Ivanov, Oleg Gusikhin

OmegaOct 20, 2025
Abstract

• Ford’s practices for design and implementation of a supply chain digital twin (SCDT) • Generalized three-layer framework for the design of SCDTs • Three-stage SCDT implementation scale framework • Four-level SCDT implementation scope framework • Four fundamental principles for SCDTs deployment at scale In this study, we describe Ford’s practices and propose three industry-based frameworks for supply chain digital twin (SCDT) design and implementation at scale. First, a generalized three-layer framework for the design of SCDTs based on Ford's approach is developed. The layers are intracompany, Tier-1 network, and deep-tier network, classified based on data visibility. We describe how digital twins can enhance operational performance and be utilized for resilience stress testing. Second, generalized frameworks of SCDT implementation are shown composed of two dimensions, i.e., implementation scale and implementation scope. The three-stage implementation scale framework proposes a roadmap for transition from data-driven organizations to digital twin-driven management systems. The four-level implementation scope framework encompasses product, process, organization, and extended network levels, with a focus on the key role of the data analytics department in deploying SCDTs. We then generalize four fundamental principles for SCDTs: (i): object-driven and data-driven design and adaptation, (ii) visibility as the central angle of digital twin design and technology, (iii) digital twins are integrators of data and knowledge, and (iv) SCDT continuous adaptation. To the best of our knowledge, our paper is the first in the literature to report the design and deployment of an SCDT at scale, which can be useful for academics and practitioners alike. We conclude that a properly developed SCDT can enable strategic and operational performance improvements, end-to-end visibility, agentic AI integration in decision-making, and supply chain stress testing, as well as create a new approach to managing the supply chain.

1Authors

AuthorAffiliation
Dmitry IvanovBerlin School of Economics and Law
Oleg GusikhinFord Motor Company (United States)

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