What is Digital Twin and how does it optimize operations?

A warehouse model becomes useful when it accurately represents the behavior of the physical system it depicts and when it is maintained with suitable data and valid assumptions over time. A static three-dimensional rendering of a facility, by contrast, provides visual context but cannot support operational decisions.

Research by Kritzinger et al. (2018) classifies virtual representations into three distinct categories based on their level of integration: digital models, digital shadows, and digital twins. A digital model has no automated data exchange with the physical system. A digital shadow receives data automatically from the physical environment but does not send information back. A digital twin features automated data flow in both directions. Their review warns against treating these concepts as interchangeable, because each integration level determines what kinds of decisions the virtual representation can reliably support.

Sargent (2013) reinforces this point by identifying four dimensions of simulation quality: conceptual validity, model verification, operational validity, and data validity. In practical terms, this means a warehouse model must be built on sound logic, verified against its design intent, validated under real operating conditions, and fed with accurate, current data. When any of these dimensions is weak, the model’s outputs lose credibility and can mislead rather than inform.

For operations managers evaluating whether a virtual model will deliver value, the critical question is not how visually impressive it looks but whether it has been built and maintained to a standard that makes its results trustworthy. Meaningful results depend on the quality of input data, the validity of underlying assumptions, and ongoing model maintenance as the physical system evolves.

How Does a Digital Twin Support the Full Facility Life Cycle?

A digital twin supports the full facility life cycle by serving as a decision-support tool from early design through commissioning and into daily operations, enabling teams to evaluate changes in a virtual environment before committing resources in the physical one.

Early Design and Scenario Evaluation

During early design, a digital twin simulation allows engineers to test layout configurations, throughput assumptions, and material flow logic before any physical construction begins. This means potential bottlenecks, capacity constraints, and integration issues can be identified and resolved when changes are least costly. Operators and warehouse managers can also use this phase to prepare for the system they will eventually run, evaluating scenarios and building familiarity with how the automated storage and retrieval system (ASRS) will behave under different demand patterns.

Virtual Commissioning and Operational Changes

Virtual commissioning uses the digital twin to test control logic, software behavior, and system sequences against the virtual model before the physical equipment is started. This reduces the time and risk associated with on-site commissioning because many issues are resolved in the virtual environment first. The scope of what virtual commissioning covers should be defined within the project to set clear expectations for both the technology supplier and the operations team.

After startup, the digital twin remains available to evaluate proposed operational changes without interrupting physical production. When an operations manager considers adjusting storage strategies, modifying shipping sequences, or accommodating a new product type, the virtual environment provides a space to test those changes and assess their impact on throughput, cycle times, and material flow before implementation.

It is important to note what a digital twin does not do on its own. It does not autonomously control the warehouse, nor does it predict every possible failure. Its value is in supporting informed human decisions, not replacing them. Operator preparation and scenario evaluation are practical applications that should be scoped and defined during the project to ensure the digital twin delivers results aligned with the facility’s actual operational needs.

How Does Pesmel Use Digital Twins for Warehouse Optimization?

Pesmel represents the ASRS environment virtually before commissioning, creating a digital twin that remains available after startup for testing and continuous optimization without interrupting physical production. This approach applies Pesmel’s material flow simulation expertise to both new and existing automated high-bay warehouse installations.

By combining its proprietary WMS software with simulation during project verification, Pesmel delivers a virtual commissioning process that helps operations teams validate system behavior before go-live. After handover, the same virtual environment supports ongoing evaluation of operational changes, scenario testing, and operator preparation across the facility’s life cycle.

If you are considering how a digital twin could support a concrete operational improvement in your facility, we welcome the conversation. Contact our team to discuss your warehouse environment and the scenarios you want to evaluate.