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The impact of Social Media on Supply chain
Nowadays the usages of social media become more popular around the world. According to statistia, over 3.6 billion people using social medial all over the world and is predicted to 4.41 billion in 2025. According to the Digital Information World, people spent 2 hours and 22 minutes on social media in 2019( average spent). (Link)
Social media become a more popular platform for the business world. Many companies focusing on the social media site for grabbing consumers and improving their business strategy. Now, it becomes a more effective way for the organization to operate their business. Therefore, social media impact the company’s supply chain operations. They have been started using social media for improving their supply chain management.
The following effects are usually seen in the supply chain of an organization:
Social media can improve visibility (such as sourcemap) and communications in organizations. It helps reduce operating and labor costs, improve efficiency and control supply chain operations.
1. Social media has a great impact on the sourcing and purchasing parts of the supply chain. It helps the firm in the procurement process. There are many vendors offering their products on social media. Sometimes it is difficult to find accurate and real sources in the traditional way. Therefore, social media helps to establish contact with many suppliers in a short period of time. It destroys the geographic area of procurement.
2. Monitoring the supply chain through social media becomes easy for the organization and make its supply chain operation more efficient. Organizations can provide up-to-date information, such as shipping, transportation, inventory, pick up information so on. Twitter messages can indicate the arrival or departure of goods from a specific warehouse and can alert drivers to accidents and road closures.
3. Social media has a great impact on the value chain model of the organization. Those organizations that check trends and customer behavior on social media can store data. This database helps the R & D department of the company to identify new innovations. In addition, social Media helps the HRM department to find talented employees for organizations such as the Linkedin profile of the candidate. It helps the organization with inbound logistics, outbound logistics, operations, marketing and services.
4. Metrics like fill-rate, accuracy and on-time delivery provide information on how well jobs were done but unfortunately do not give a full view on the customer service front. Social media generates this insight and has monitoring tools that can give off data that provides an in on valuable facts that can influence supply chain planning.
Some channels work better than others. Not all social media networks will yield the same results. Statista findings show that marketers have found LinkedIn to be the most effective social media platform for B2B. 66 percent of them believed it to be effective with only 30 percent finding Facebook to be effective.
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