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Technology

Harnessing digital twins for workforce training and upskilling

16 Jun 20259 min read
Harnessing digital twins for workforce training and upskilling

Summary

  • Digital twin technology — virtual replicas of physical systems powered by real-time IoT and analytics — is transforming how companies train, simulate and optimise operations. The global digital twin market is projected to grow significantly, underlining its increasing strategic importance.
  • In Asia, digital twins are especially valuable for workforce development in supply chain operations, enabling safe, simulated training on complex scenarios such as inventory risk, demand shocks and logistical disruptions.
  • While offering benefits like cost-efficient training and faster upskilling, digital twin adoption faces challenges in data integration, cyber-security and needed expertise — requiring sustained tech investment and change management.
Digital twin technology is revolutionizing how industries train and upskill their workforce. A digital twin is a virtual model of a physical system, asset, or process, enabling real-time simulations and analytics. By integrating data from IoT devices and machine learning, digital twins replicate real-world scenarios to improve training outcomes. According to Gartner, the global digital twin market could reach $379 billion by 2034, highlighting its growing significance.
In Asia alone, Digital Twin technology is transforming supply chain management, offering virtual replicas of physical assets and processes that enhance efficiency, resilience, and workforce development. The Asia-Pacific digital twin market is projected to grow from $2.5 billion in 2023 to $256.5 billion by 2033, reflecting a compound annual growth rate of 58.64%.
How can businesses leverage this innovative tool to foster a future-ready workforce while overcoming its challenges?

What are Digital Twins?

Digital twins are dynamic, virtual replicas of physical entities that simulate their real-world counterparts in real-time. By aggregating data from sensors, IoT devices, and analytics platforms, digital twins enable organizations to model and test processes, assets, or systems in a risk-free digital environment.
Here are some industry examples:
1. Manufacturing: Digital twins can simulate machinery performance, optimize maintenance schedules, and evaluate design changes in a risk-free virtual environment. This technology enhances decision-making, minimizes downtime, and promotes operational efficiency, making it an essential tool for modern manufacturing
2. Healthcare: Digital twin technology in healthcare creates a dynamic virtual replica of patients or clinical systems using real-time data and advanced analytics. This technology gathers information from sources like electronic health records, wearables, and medical devices, offering a holistic view of the patient. It enables personalized treatment plans based on individual characteristics, medical history, and real-time physiological data.
3. Logistics: In supply chain management, digital twins offer real-time visibility by collecting data from various sources, allowing logistics operations to be monitored and optimized. They utilize predictive analytics and machine learning to forecast future events, helping businesses improve decision-making and resource allocation. Digital twins enhance efficiency by optimizing the use of resources, such as vehicles and warehouses. They also mitigate risks by identifying potential disruptions and enabling proactive responses. Furthermore, digital twins evolve with changing data sources and operational needs, ensuring logistics operations remain agile, competitive, and capable of adapting to new challenges in the supply chain.

The Role of Digital Twins in Workforce Development

Digital twins serve as powerful tools to simulate and visualize complex supply chain operations, providing employees with a safe and interactive environment to learn and experiment. They enable training on scenarios like demand fluctuations, inventory optimization, and transportation disruptions without impacting real-world operations.
Digital twins empower employees to bridge theoretical knowledge with practical applications. This approach accelerates skill development while reducing operational risks.

Key applications in Supply Chain Training:

Dynamic Scenario Simulations: Trainees can engage with real-time data to navigate disruptions such as supply shortages or logistical challenges, fostering problem-solving and critical-thinking skills. This capability is particularly beneficial in Asia’s dynamic logistics sector, where companies face complex challenges due to diverse markets and rapid economic growth.
For example, DHL Supply Chain’s implementation of the first digital twin warehouse for Tetra Pak in Singapore demonstrates the practical benefits of digital twin technology in workforce training. By creating a smart warehouse that integrates IoT and real-time data analytics, warehouse supervisors can make informed decisions to reduce congestion, optimize resource planning, and enhance safety protocols. Employees are trained to work within newly implemented safety measures while utilizing advanced tools such as proximity sensors, which minimize collision risks and reduce manual handling of heavy containers. These technologies and training practices empower the workforce to adapt quickly to disruptions and maintain operational efficiency, setting a benchmark for supply chain innovation in Asia.
Additionally, a framework presented in the research paper “Transferring Digital Twin Technology on Employee Skills” demonstrates how digital twin technology can be combined with skill assessment to create enhanced skill profiles. This approach allows organizations to tailor training modules to address specific needs, thereby improving overall workforce competency.
Collaboration in Control Towers: Integrated with supply chain control towers, digital twins provide a centralized view of operations, enhancing cross-functional team collaboration during training sessions.
In Asia, the Agency for Science, Technology and Research (A*STAR) in Singapore has launched the Supply Chain 4.0 initiative, aiming to develop a configurable digital twin for industry use in planning, operations, and risk management. This initiative involves collaboration with local universities and companies to co-develop solutions and implement them for end users.

Benefits of Digital Twin for Workforce Training and Upskilling in Supply Chain

Digital twins are revolutionizing workforce training in the supply chain sector, offering unparalleled opportunities for skill enhancement and operational efficiency.
Digital twins provide dynamic, data-driven environments where employees can engage in real-world scenarios without impacting live operations. This enables risk-free learning and better preparedness for disruptions. ABeam Consulting Vietnam’s work with a logistics company exemplifies this benefit, as digital twin simulations were used to optimize supply chain networks, evaluating 26 possible site and function combinations. By digitally replicating real-world constraints—such as varying temperature requirements and long-distance deliveries—the company refined its logistics strategy without disrupting actual operations.
This simulation-driven approach is transforming supply chain management in Vietnam, where businesses face mounting complexities due to shifting trade policies and increased regional manufacturing activity. According to the Vietnam Logistics Market Report, the sector is expected to exceed $52 billion by 2025, necessitating advanced technological solutions. Digital twins allow firms to test new logistics strategies in a controlled environment, ensuring they make data-backed decisions that enhance efficiency.

Personalized training programs

With detailed analytics, digital twins identify individual skill gaps and customize training modules, ensuring targeted upskilling. This personalized approach enhances learning outcomes and workforce proficiency.
For instance, the Indian Institute of Materials Management offers a course on modeling and building digital supply chain twins using anyLogistix software, which includes applications in skill assessment and training customization. This program demonstrates the practical benefits of digital twin technology in workforce training within the supply chain sector.

Faster skill development

Interactive simulations shorten the learning curve, allowing employees to quickly grasp complex supply chain operations such as demand forecasting, inventory management, and logistics planning.
Implementing digital twin technology has been shown to significantly enhance skill development within organizations. A case study at a major automotive manufacturing facility integrated digital twins with artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and robotics to create an immersive training environment. This approach led to a 65% improvement in training effectiveness over an 18-month period, underscoring the potential of digital twins to accelerate workforce skill acquisition.

Improved decision-making skills

By providing real-time data and predictive insights, digital twins train employees to make data-driven decisions, fostering confidence and precision in handling supply chain challenges.

Cost-efficient training

Training via digital twins reduces downtime and eliminates expenses tied to errors in live systems, delivering long-term cost savings.
Digital twin technology has proven to be cost-effective in training scenarios across various industries in Asia. For instance, a Matterport webinar highlighted that utilizing digital twins to communicate standard operating procedures can reduce onboarding time and training costs by 61%. Matterport is the leading spatial data company focused on digitizing and indexing the built world.

Increased workforce adaptability

Digital twins prepare employees for evolving industry demands, ensuring they are equipped to handle emerging technologies and market trends.
One instance being, the 3DEXPERIENCE platform leverages Digital Twin technology to enhance collaboration, safety, skills development, and operational efficiency, thereby creating a more engaging and connected work environment.
This innovative approach to training ensures that supply chain professionals remain agile and effective in an increasingly complex landscape.

Challenges of Digital Twin for Workforce Training and Upskilling in Supply Chain

While digital twins offer significant advantages for workforce training, several challenges hinder their implementation and scalability. Here are the key issues:

High implementation costs

The development and deployment of digital twins require significant investments in software, hardware, and skilled personnel. For many organizations, this creates a barrier to entry.

Complexity of data integration

Integrating real-time data from multiple sources such as ERP, IoT devices, and SCM systems is technically challenging. Ensuring data accuracy and consistency adds another layer of complexity.

Workforce resistance

Employees may resist adopting new technologies due to unfamiliarity or fear of change. Overcoming this resistance requires extensive training and change management strategies.
This resistance is frequently linked to a lack of understanding and insufficient training. The International Journal of Smart and Sustainable Built Environment highlights that a “low level of knowledge” and “low level of technology acceptance” among employees impede digital twin implementation.

Limited skilled expertise

Building and maintaining digital twins demand expertise in fields like data analytics, simulation modeling, and AI. The lack of readily available talent can delay implementation.

Cybersecurity concerns

Digital twins operate on live data, making them potential targets for cyberattacks. Protecting these systems against breaches is a critical concern.
Implementing digital twin technology introduces significant cybersecurity challenges. A report from CSO Online highlights that without proper cybersecurity controls, digital twins can expand a company’s attack surface, potentially granting threat actors access to previously inaccessible control systems and exposing pre-existing vulnerabilities

Measuring ROI

Determining the tangible benefits of digital twin adoption for workforce training, especially in the short term, can be challenging, causing hesitation among stakeholders.
Implementing digital twin technology presents challenges in measuring return on investment (ROI), which can hinder stakeholder buy-in. Proving the value of new technologies is critical. Without clear ROI metrics, gaining stakeholder buy-in can be challenging. It’s recommendable to manage setting measurable goals and tracking performance indicators such as operational efficiency, cost savings, or enhanced decision-making to address this issue.
Addressing these challenges will require strategic planning, cross-functional collaboration, and long-term commitment to digital innovation.

Future prospects

As global supply chains grow increasingly interconnected, digital twin technology is reshaping workforce training, offering unparalleled opportunities for skill enhancement and operational agility. By creating virtual replicas of supply chain processes, companies can simulate complex scenarios, train employees in real-time decision-making, and cultivate a culture of innovation.
Digital twins empower SMEs to compete with larger players by enabling rapid experimentation, improved decision-making, and enhanced customer satisfaction. As the demand for dynamic supply chain professionals rises, digital twins are becoming essential tools for fostering technical proficiency and resilience.
The scalability of digital twins enables businesses to align training with real-world challenges. Platforms such as IBM’s Digital Twin Exchange provide ready-made templates that can be customized to mirror company-specific workflows.
By investing in digital twins, organizations not only enhance operational efficiency but also secure a competitive advantage, preparing their workforce to meet the challenges of modern supply chain management.
How Digital Twins Are Shaping the Future of Work - Value Chain Asia