Implications of social media for the supply chain. A presentation given to the Chicago Association for IT Professionals SIG on supply chain in the enterprise.

1. SOCIAL MEDIA:
Connecting with Partners and Consumers the
new-fashioned way!
www.sprcompanies.com

2. About SPR Companies
 IT Professional Services Firm
 Over 35 years in the Midwest
2

3. SPR Companies
Leadership Impact

4. Agenda
• True Issues facing the Supply Chain
• What role does Social Media play in the Strategy
of the Business?
• Overview of key Social Media Tools
• Overview of key Social Media Listening Tools
• How can Social Media play a role in the solution of
the issues facing the Supply Chain?
• Interactive example
4

5. Supply Chain Challenges
Because of the relative economic instability, the typical trend analysis and projection models
are not meeting business requirements. Simply said, predictive analytics, by definition, do
not function well in times that are unpredictable. When you can’t predict the future with
some level of reliability, it is even more important that the business knows exactly what is
going on in real time or near real time. With this in mind, we can think of two areas of
importance where social media might provide value to improving supply chain performance
and risk avoidance:
• Monitoring both planned and actual consumer behavior (I’m gonna buy vs. I just bought)
is critical. What value does a social media solution bring in comparison to POS
information?
• Brand reputation is always critical, but even more so now with top-tier CPG brands
losing market share to less costly private label products. It is critical to have immediate
responses to customer feedback, issues, concerns, and complaints. Is there a role for
social media here?
• Are there any privacy issues around the commercial utilization of social media
information gathering and how can they be minimized?
• Supply chain professionals are concerned with the customer ―population‖ as opposed to
a ―sample.‖ What are the current and projected representative demographics of those
participating in the area of social media
5

6. Supply Chain Challenges
• Increasing supply chain responsiveness leading to a more customer-driven process:
The ability to treat inventory in transit as available for the safety stock calculations
and have the ability to make mid-course changes to shipments.
• Third-party logistics outsourcing. Re-negotiating partner agreements. Innovate with
the tools you have or take those same activities and hand them off to a 3PL, and let
them do the innovating. The risk of becoming too reliant on outsourcing is allowing
ourselves to be less alert and aware of changes. When contracting with a 3PL, we
expect them to provide expertise in areas of importing and exporting for example --
specifically in regulatory matters, such as the Transportation Safety Administration's
new cargo screening regulations and 10+2 regulations on shipment documentation.
There is a need to keep up to date on the latest regulations affecting international
trade. http://logipi.com/public/item/244464
• C-Level involvement in supply chain: There is much more attention on the C-suite—
with the chief operating officer, your chief executive officer—there’s more recognition
on their part of the impact of logistics and supply chain, whether it’s managing the
inventory, managing the sourcing, managing the transportation. It’s now more and
more that the C-suite executives are starting to really get the impact of supply chain.
• OTHERS??
6

7. SOCIAL MEDIA
Get Past the Hype…. Get Down to Business

8. SOCIAL MEDIA

9. Leadership Impact of Social Media
Innovation •Ahead of Competition
Differentiation •Out of Price Wars
Execution Framework
•Direction
Mission & Vision •Focus
Engagement •Flexibility
•Delivery to Goals
•Accountability
Strategic Plan •Ownership
•ROI
Social Solution Suites
Net Promoter •Feedback
•Achievement Targets
Metrics for Accountability •Guidance
•Communication
Influence Market •Memorable & Impact
Marketplace Message •Value
•Influence

10. Many Moving Parts make up a Successful
SOCIAL SOLUTION SUITE.

11. SOCIAL SOLUTION SUITE Definition….
A set of social media channels and the means of
measuring actionable outcomes so that you can
adjust your market messages to best effect and
maximize your Strategic Objectives.

12. Social Solution Suite
Market Place
Message
Social
Promoter
Web
Buzz
Campaign
Monitor
Metrics

13. Strategic Objective
•Key Metric Target
SOCIAL Net Score
•Key Metric Result
SOLUTION
SUITE
I F
n MONITOR
f
e METRICS
l e
u d
e b
n
c a
e c
k
PROMOTER
SOCIAL WEB BUZZ
CAMPAIGN
• Social Channels
• Set Metric Targets
• Timing

15. What tools will drive your success?
• Social networks
• Video sharing
• Photo sharing
• Micro blogging
• Blogging
• Link sharing
• Social calendaring

16. Social Media Listening Tools

17. Listening Tools
• Free • Pay

18. Key Metrics
• Unique visitors • Sentiment (NPS)
• Pages visited • Reviews
• Time on site • Recommendations
• Bounce rate • Referrals
• Posts • Tweets
• Comments • Retweets (RT)
• Post:Comment ratio • Mentions
• Search engine • Connections
ranking • Followers

20. September 2008 to September 2009 visits to
social networks were up 62%

21. Social Network Demographics
Statistic Facebook LinkedIn MySpace Twitter YouTube
Monthly 129M 15M 49M 23M 84M
Unique
Visitors
Gender % 43M/57F 50M/50F 36M/54F 43M/57F 50M/50F
Largest Age 45-54 (24%) 35-44 (31%) 0-17 (34%) 35-44 (29%) 18-34 (35%)
Group (% of
whole)
2nd Largest 36 -44 (20%) 45-54 (28%) 45-54 (19%) 45-54 (20%) 35-49 (24%)
Age Group
Average 50-75K 75-100K 25-50K 25-50K 30-60K
Household (36%) (23%) (39%) (30%) 60-100K
Income 50-75K 50-75K 100K+ (27%)
(35%) (27%)

23. Facebook owns 58.59% of social network market
(MySpace visits down 55% in 2009)

24. Twitter (1,170% gain in market)
Size of Network
• 20M
Gender
• Male: 43%; Female: 57%
Age
• Largest age group of users…
 35 to 44 (29%)
 Next largest 45 to 54 (20%)
Average Household Income
• 25-50K (30%); next largest 50-75K (27%)

25. Connecting with Partners and Consumers
the new-fashioned way!

26. Who are your buyers?

27. What are your buyers talking
about?

28. When and Where are your
consumers talking about your
product?

29. Why are your consumers talking
about your product?

30. Supply Chain Challenge
Where should you distribute your
product?

31. Supply Chain Challenge
What should my safety stock be?

32. Brand reputation is
Strategic Objective always critical, but even Net Score
•Key Metric Target •Key Metric Result
more so now with top-tier
CPG brands losing
market share to less
I
costly private label
F
n products. It is critical to MONITOR
f
e METRICS
have immediate
l e
responses to customer
u d
e feedback, issues,
b
n concerns, and
c a
complaints.
e c
k
PROMOTER
SOCIAL WEB BUZZ
CAMPAIGN
• Social Channels
• Set Metric Targets
• Timing

34. Step 1 – Strategic Objective
• Immediate responses Product : 20Q
to customer feedback, It is a mind reading game based
On 20 questions. Everyone will
issues, concerns, and love it especially your tween.
complaints. Perfect stocking stuffer.
• Key Metric Target
 Customer Satisfaction
 Sales Volume • Strategic Objective
• Key Metric Target
34

35. Step 2 – Market Place Message
• Demographics
 Children between the
ages of 10 – 12.
• Psychographics
 Inquisitive children
 Children that like
puzzles
• Industry
 Electronics
35

36. Step 3 – Campaign
• Social Channels
 Twitter
 FaceBook
• Set Metric Targets CAMPAIGN
• Social Channels
 90% Customer • Set Metric Targets
Feedback Positive • Timing
 24 Hour Response
Turnaround
• Timing
 Holiday Delivery
36

37. Step 4 – Social Web
• Establish Presence
 Message
 Set Up SOCIAL WEB
 Update Frequency
 Monitoring of Content
 Governance
— Who owns it.
— Who decides what posts
— Who replies
— Who responds to metrics
— Who owns response times
37

38. Step 5 – Promoter Buzz
• Influence
 Message to guide
PROMOTER
response
BUZZ
• Feedback
 Love It, Great,
Awesome, 
 Hate It, Bad, SUX, 
• Magnitude
 Numbers of
Responses
 Location
38

39. Step 6 – Metrics Monitoring
• Tools to Use
 Hootsuite
MONITOR
 Facebook Analytics METRICS
• Results
 Positive Feedback
 Negative Feedback
 Turnaround on Issues
39

40. Step 7 – Net Score
• Immediate responses
to customer feedback,
issues, concerns, and
complaints.
• Key Metric Target
• Net Score
 % Positive Responses • Key Metric Result
 Average Response
Time to customer
40

41. Strategic Objective Increasing supply chain Net Score
•Key Metric Target responsiveness leading •Key Metric Result
to a more customer-
driven process: The
ability to treat inventory
I in transit as available for F
n MONITOR
f
the safety stock e METRICS
l calculations and have e
u the ability to make mid- d
e course changes to b
n
c shipments. a
e c
k
PROMOTER
SOCIAL WEB BUZZ
CAMPAIGN
• Social Channels
• Set Metric Targets
• Timing

43. Step 1 – Strategic Objective
• Where should I send Product - Mood Madness Punch
This punch turns colors based on
the product and how the temperature it encounters. Kids
much safety stock love it. It is a great summer treat for
both indoors and outdoors alike.
should I have? You can buy it in a grocery store
• Key Metric Target near you.
• Strategic Objective
 Geographic Volume • Key Metric Target
Forecast Accuracy
 Sales Volume (Internal
System)
43

44. Step 2 – Market Place Message
• Demographics
 Children between the
ages of 5 - 8
 Parents
• Psychographics
 All children that can
drink sugar flavored
beverages.
• Industry
 Grocery
44

45. Step 3 – Campaign
• Social Channels
 Facebook
 Twitter
• Set Metric Targets CAMPAIGN
• Social Channels
 Geographic Feedback • Set Metric Targets
 Sales Volume (Non • Timing
Social Media)
• Timing
 Spring Months
45

46. Step 4 – Social Web
• Establish Presence
 Message
 Set Up SOCIAL WEB
 Update Frequency
 Monitoring of Content
 Governance
— Who owns it.
— Who decides what posts
— Who replies
— Who responds to metrics
— Who owns response times
46

47. Step 5 – Promoter Buzz
• Influence
• Feedback
 Love It, Great, PROMOTER
BUZZ
Awesome, 
 Hate It, Bad, SUX, 
 Unexpected uses
 Mood Madness Punch
 Moody Mojitos
• Magnitude
 Geography of largest
volume of feedback
 Audience
Segmentation 47

48. Step 6 – Metrics Monitoring
• Tools to Use
 Hootsuite
MONITOR
 Facebook Analytics METRICS
 Omniture
 Networked Insights
• Results
 Geography
 Quantity of Responses
48

49. Step 7 – Net Score
• Immediate responses
to customer feedback,
issues, concerns, and
complaints.
• Key Metric Target
• Net Score
 % Positive Responses • Key Metric Result
 Average Response
Time to customer
49

50. Strategic Objective C-Level involvement in Net Score
•Key Metric Target •Key Metric Result
supply chain: More
recognition on their part
of the impact of the
supply chain, whether it’s
I F
n
managing the inventory, MONITOR
f managing the sourcing, e METRICS
l managing the e
u
transportation. d
e b
n
c a
e c
k
PROMOTER
SOCIAL WEB BUZZ
CAMPAIGN
• Social Channels
• Set Metric Targets
• Timing

51. THANK YOU! Questions:
Kathie.topel@mpspartners.com
Questions:
tnilson@sprcompanies.com
@socialsyntax
Join our LinkedIn Group:
http://tinyurl.com/spr-leadership