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The impact of Social Media on the Logistics and Supply Chain Industry

Current estimates point out that there are close to 3 billion social media users in the world, with half of these having subscribed to Facebook. It is widely accepted that social media has changed the way businesses interact with the customers as well as other stakeholders. It has reduced the gap as well as allowed real time communication between the parties.

However, despite the potential benefits presented by the media, close to ninety percent of businesses do not use social media in facilitation of communication between the business and its customers. In his research Adrian Gonzalez, the founder of Adelante SCM found that approximately 62 percent of supply chain professionals have not implemented supply chain network solutions. Similar findings are reported by Goldberg Partners and IDG Research Services. Research by the Netherlands Chamber of Commerce (Kamer van Koophandel) and a number of organizations from Research Logistics and Alliances (Kennis Distributiecentra Logistiek) found that only 46 percent of the surveyed companies used social media.

Nevertheless, those that have adopted social media have leveraged the technology. They have been able to improve customer delivery. Eight percent of the Logistics and supply chain companies which have adopted social media networks have improved their shipment updates. The fact that social media can be used to relay information on a real time basis means that they can get feedback immediately. Such a move is seen to increase customer confidence, something that any business out there should want to achieve.

Social media networks serve as platforms where customers can easily get information about a business. Some logistics and supply chain industries have found it easy to provide the information that is needed by customers. There are many benefits that can be achieved through use of social media networks in logistics and supply chain businesses. It helps in improving communication, and boosting customer confidence among other benefits.

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