Unveiling the potential of digital twins in logistics and supply chain management: Services, capabilities, and research opportunities

Logistics is a labor- and asset-intensive industry, characterized by numerous operational processes managed by heterogeneous partners, which are tightly interconnected. Maximizing resource utilization and ensuring efficient stakeholder coordination within logistics operations pose significant challenges. Recently, Digital Twin (DT) technology has gained increasing interest for its potential to enhance asset and operations management in logistics. However, few studies offer a comprehensive view of DT applications across end-to-end global logistics services, particularly in relation to service innovations and the technological maturity of different service types. This paper conducts a Systematic Literature Review (SLR) to explore the state of the art in DT applications in logistics, offering an in-depth understanding of recent research foci, advancements, and opportunities for service innovation. Following the screening process, 70 papers were selected and analyzed. A three-axis framework is used to categorize key aspects of effective DT application, focusing on application areas, service types, and technological maturity as measured by the Technology Readiness Level (TRL). In logistics operations, DT has the potential to innovate or enhance eight key services: Monitoring, Evaluation, Prediction, Optimization, Control, System Management, System Integration, and Adaptation. DTs must be proficient in five core capabilities to deliver these eight services: integration, computation, simulation, interoperation, and evolution. In terms of DT technology maturity, most research focuses on early-stage development, emphasizing conceptual frameworks and exploring potential services. While many studies have tested proposed DT services in simulated environments, only a few have evaluated them in real-world operational settings. Finally, research avenues are explored, providing valuable insights for future investigations and continued development of DT applications in logistics and supply chain management.