The Role of Financial Digital Twin in the Supply Chain Management

As supply chains undergo accelerated process of globalization and gain complexity, it becomes evident that conventional approaches to financial management are no longer adequate. The reliance on historical data, traditional budgeting, and delayed insights impede the accuracy of financial forecasting, management of cash flow, and mitigation of risk. This paper presents an exploration of the concept of a financial digital twin, which effectively serves as a digital representation of the financial processes of a supply chain by integrating near real-time data. The objective of this paper is to examine the limitations of traditional financial management practices and to examine how utilization of digital twin can revolutionize the practice of financial management. Additionally, the paper investigates the benefits and potential application of financial digital twins within supply chain. The paper is designed to provide experts with comprehensive understanding of the technology that holds the potential to transform financial supply chain management.