Is Social Media Beneficial to Supply Chain Management?
Social media has changed the world, there is no doubt about it. People love information and social media platforms are the reigning champions when it comes to providing that information overload.
And while it may be fun for passing the time and keeping in touch with family… is it critical or beneficial for supply chain management?
Yes, it is.
Social media channels give consumers, vendors, suppliers, manufacturers, transportation companies, and fulfillment centers a powerful tool for gathering all sorts of feedback. From positive reviews to something more negative due to a poor experience, all that data can be put to good use. In fact, CSCOs can benefit massively by incorporating social media channels into their overall customer experience strategy.
In this blog post, we are going to outline some of the reasons how supply chain management efforts are improved via social media.
However, if you want to have a much more in-depth better understanding of how advantageous these platforms can be for logistics companies, you should consider partnering with a 3PL such as Redwood.
Why is Social Media Input Critical for Supply Chain Management?
Decisions regarding supply chain management should never be made without accounting for both positive and negative input. A major fault with some SCM solutions is that they tend to be focused on an inward thinking concept of data collection. The philosophy behind this is to essentially gather information on procedures and policies, without factoring in the ripple effect that those procedures and policies may create further down the supply chain.
For example, let’s say a manufacturer is creating a high-quality product, but they have been facing a problem with its fulfillment center. The fulfillment center has recently been packaging the manufacturers’ goods improperly. After a while, items start arriving at their final destination in a consistently poor or damaged condition.
In the end, however, one major thing usually follows; that brand is blamed for the quality of their product, regardless of it simply being handled incorrectly during the trip.
Using social media to capture feedback from your customers can help you to improve visibility, transparency, and build a better rapport with them. Reviewing data and providing feedback and solutions to social media users openly also improves trust, building the relationship that can and often does result in improved sales.
Here are some of the specific benefits of using social media as a powerful tool for supply chain management…
Improved Communication with Direct Consumers
A customer service study completed in the 1980s by a major big-box retailer indicated that customers who were dissatisfied with a shopping experience were 10 times more likely to share that negative experience. As the years continued on and technology became an integral part of our lives, platforms for sharing customer experiences, both good and bad, were created.
Social platforms such as Facebook allow supply chain participants to review direct consumer feedback and respond to that feedback privately or publicly, all in real-time.
Not only can customers get quick answers to issues they are facing, but the customer also sees this as a positive interaction with the business. They are no longer dealing with just a faceless company, they have direct access to a human being who can provide support.
At its core, social media is a powerful communication tool.
Quick Feedback on Changes
When a company wants to restructure its operations, it can take months to gather enough feedback from their user-base about the proposed changes. Social media platforms expedite this crucial data collection process greatly.
With the changes put into place, after some time companies can leverage their social accounts again to gauge the impact it has had on their brand image and customer relations.
Once they have done some deep digging into all the feedback they receive after these changes have had a while to set in, the company can continue to fine-tune things further.
There are some social platforms such as LinkedIn that allow supply chain partners to connect with future talent, vendors, and business collaborators. LinkedIn is a professional platform where individuals in multiple industries connect with each other, with the primary objective of growing their businesses or finding a position within a new company.
For logistics-based companies, this simplifies and streamlines the daunting task of sourcing talent to fill positions as they become open. It can also be used to share new solutions with like-minded companies, vendors, suppliers, and more.
Social media is a powerful tool that can help improve supply chain management solutions. However, using it correctly is just as critical to reaping the benefits.
If your company is involved in supply chain management and would like to explore proper social media techniques and best practices a bit further, contact Redwood Logistics today and let our team walk you through the process.