Can the Metaverse Help Solve Supply Chain Problems?

If you have recently ordered anything online, or tried to purchase appliances, furniture, automobiles, and electronic products, you are undoubtedly aware of supply chain issues that have limited the availability of these products or delayed their arrival.

 

Can the metaverse help companies solve supply chain issues?  Food and beverage company Kraft Heinz thinks so.  The company is using the capabilities of the metaverse in an effort to secure its supply chain and get its products on store shelves quicker.  How is Kraft using the metaverse?  Can it help other companies solve their supply chain problems?

 

Creating a Digital Twin

Kraft is creating a digital twin of its manufacturing process in the metaverse that may allow it to problem-solve virtually, according to a CNN article.[1]  A digital twin is a virtual representation of real-world physical assets or systems.

 

Virtual Factory Floor

The digital twin gives Kraft a capability that it did not previously have, namely, to have a working virtual map of the entire factory floor.  Digitally mapping out these facilities may help Kraft better understand the design flaws and help to increase efficiencies. 

 

The digital twin may also allow Kraft to catch errors ahead of time by allowing it to simulate production.  It can create alternatives, and then test them digitally before enacting them on the factory or warehouse floor.  Previously, the company would not know if an idea worked until they implemented it.  Virtual testing can help speed up the process.

 

Other Companies Following Suit

While explicitly using it for supply chain issues, Kraft is not the only company using the metaverse to design and improve its manufacturing processes.  A recent Citi report[2] highlighted the use of the metaverse for the field of smart manufacturing.  It explained that by utilizing simulations in the metaverse, manufacturers could significantly cut down on project costs, time, and wasted resources.

 

It also noted several companies are already using the metaverse in smart manufacturing. Some of these include:

  • Boeing is exploring digital twin technology to build airplanes.
  • Siemens Energy developed a digital twin to offer predictive maintenance of power plants.
  • Ericsson is building city-scale digital twins to help study the interplay of 5G cells and the environment for maximum performance and coverage.

 

Summary

The ability to create digital twins and perform real-time simulations highlights the potential power of the metaverse to help companies solve manufacturing and logistical problems.  It can help make companies and entire economies more efficient and productive.

 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

 

MTVR may be an attractive vehicle for investors looking to invest in the metaverse.

 

For a full list of MTVR holdings, please click here.

 

 


 


[1] Weiner-Bronner, Danielle, Kraft Heinz Wants to Solve Its Supply Chain Problems, In the Metaverse, CNN Business, 5/6/22

[2] Metaverse and Money: Decrypting the Future, Citi GPS, March 2022

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Bong-Geun Choi Chief Economist

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