Exploring the Impact of Social Media on Businesses Supply Chain Management

Social media has impacted every aspect of our lives, from how we communicate with friends and family to how we consume news and entertainment. But what many people don’t realize is that social media is also transforming the world of business, including the field of supply chain management.

By definition, supply chain management is the process of coordinating the flow of goods and services from suppliers to customers. But in practice, it’s much more complex, involving everything from product development and procurement to manufacturing and logistics. And in today’s digitized world, social media plays an increasingly important role in these areas.

Social media apps and sites such as LinkedIn, Twitter, and Facebook have become an integral part of business communication. Still, they also present challenges for businesses trying to manage their supply chains effectively.

In this article, we’re going to break down how social media impacted the way supply chain management is and why it’s so important for companies to adapt to these changes.

Impacts of Social Media on Supply Chain Management

There is no denying that social media has changed the face of business. It has become a powerful tool for companies to connect with their customers, promote products and services, and create brand awareness.

Social media also has had a tremendous impact on supply chain management, from product development to logistics. The following are five supply chain management processes in a business where social media creates impacts.

Product Development

A product development team needs to be aware of how social media affects product development so that they can ensure that their products are relevant in today’s marketplace.

One way this can be done is by using social media to identify trends in customer opinions and understand how these opinions affect consumers’ purchasing behavior. This can be achieved by using tools such as Google Trends or Twitter Trends to monitor specific keywords related to your product category or industry over time. You may also want to look at other data, such as search volume and clickthrough rates (CTRs). This allows them to make changes to the product to meet customer needs and preferences better.

Some ways to do this are by conducting online surveys, creating YouTube videos, soliciting feedback in the comments, or using social media data to track customer sentiment about a product.

Procurement Process

Many experts on marketing suggest that LinkedIn and Facebook are examples of social media platforms that provide a new way for businesses to connect with potential suppliers worldwide. Instead of relying on face-to-face meetings and phone calls, businesses can now reach out to suppliers directly through social media.

Facebook’s messaging system is one example of how social media made it easier for businesses to find suppliers and compare prices. Businesses can message their potential suppliers through their Facebook page, which allows them to communicate more easily than they would on an email. This also makes it easier for the business to research suppliers because they can ask questions about products or get price quotes right then and there.

LinkedIn has also contributed to improving the procurement process. Suppliers and buyers alike can post RFPs, or requests for proposals, which are essentially a request for more details about a specific product or service. The buyer is looking for suppliers that can provide what they need, and the supplier is looking for potential customers.

Here’s how you can find a provider and request a proposal via LinkedIn:

1. Visit LinkedIn.com/services.
2. Enter the service that relates to your project in the Search for services field.
3. To see a full list of services offered, click See all services in the Popular Services section.
   Select a service from the dropdown menu that appears.
4. Click the Get proposals button and enter the requested information to be introduced to a provider. Avoid providing your personal information.
5. You can also manually search the provider results according to a specific location and message those who are the best match for your project.
6. Click the Get free quotes button.

This makes the procurement process faster and easier, leading to cost savings for the company.

Manufacturing

Social media has helped the manufacturing process, particularly when it comes to inventory control.

Social media is a great way to connect not only with potential buyers but also with sellers. It helps businesses build relationships with their suppliers, too. This helps coordinate marketing and sales strategies along with inventory control so that goods match demand and supply. More than this, through social media, businesses can gather customer feedback. These concerns will also be forwarded to their suppliers, which can improve the products.

Social media has become the go-to platform for business owners to market their products and services. They use it to connect with current customers, as well as potential clients. Some businesses are even using social media sites as virtual storefronts. In fact, many of them have even been successful in doing this.

Marketing and Sales

Social media has also impacted the way that companies market and sell their products. Businesses traditionally use media like printed advertisements, radio, and television to reach out to potential clients. Today, social media has evolved and become a part of their strategy, which has enabled companies to connect directly with their target audiences.

Many companies post images and different video ideas to promote their products and share them on social media apps and sites like Instagram and Facebook. Others use platforms like Twitter and Facebook to offer special deals and coupons to lure customers in.

According to Optinmonster in one of their blogs entitled “Social Selling Statistics for 2022 (Includes Social Media Marketing!),” among those between the ages of 18-29, 49% say they purchased after viewing an advertisement on social media (2022).

Logistics

Finally, social media has also transformed the logistics side of the supply chain. Logistics is the process of planning, implementing, and controlling all activities required to move products from the point of origin to the point of consumption to fulfill customer orders. The logistics function within a company is responsible for ensuring that the right product reaches the right customer at the right time.

Despite not being widely used in logistics and transportation, social media has some benefits for this sector:

Social media can give you up-to-the-minute information on unforeseen issues such as accidents and road closures that affect your shipment or delivery schedule. You can then use this information to reroute your deliveries if necessary.

Social media can also be used to stay informed about weather conditions and other natural aspects that might affect your shipment or deliveries.

Bottom Line

The use of social media has a profound impact on supply chain management. By using social media, businesses can connect with their customers and suppliers more easily, get feedback about their products, and track trends in customer demand.

Another proof to see this impact is by checking out previous small businesses that started out using social media. Through posting content, asking questions via their IG story or comments sections, and maximizing eCommerce sites that allow them to meet suppliers who are fit with their businesses, to now expanding their business and opening up pop-up stores or even a factory.

This statement proves that social media sites are used by businesses to interact with customers, partners, and suppliers. Social media apps and sites also provide a way for companies to share information and get feedback from their network of contacts. And using these social media sites made the supply chain more efficient and effective, ultimately leading to cost savings for businesses.

So as businesses become increasingly digitized, those who take advantage of social media will have a clear advantage over their competition.

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