How Can Logistics and Supply Chain Benefit from Social Media?

There are approximately 2.5 billion social media users around the world. Social media reformed the way businesses interact with customers. It closed the gap between not only customers, but also businesses. And now as the transportation and logistics sector grows, social media frenzy has started to find its way into logistics and supply chain management. It is essential to work strategically to leverage technology and media to drive efficiencies and connect with core audiences, partners, and clients.

In the logistics and freight-forwarding industry, social media is used as a tool for business only. There aren’t any interactions with customer. Companies are unaware of the parameter of social media comments about services or even the system. These tools might pose helpful information for the freight forwarder and its management. The challenge lies how companies handle the reviews and collect the information together to provide valuable data. Below are some of the advantages that social media may add to logistics companies:

• Shipment schedules can be updates faster; there is an increase in the tracking and visibility of your supply chain.
• Getting important information about accidents, road closures from social media about freight transportation to re-route the deliveries.
• Be informed about weather conditions and other natural aspects that might affect your shipment or deliveries.
• Learn more about the latest trends and other valuable insights from customers and leaders of industry.
• Share or obtain data for risk identification, and reveal the dangers in your supply chain.
• Search and collect innovative ideas from different points of view to further improve your business offers.
• Reach out to new employees, customers, business partners and opportunities.
• Increase your relationship with your business partners and your customers. Social media provides your company reviews and feedback from customers and so you can improve your service.

Each business’s goal is to make a profit. From the supply chain perspective this goal can be achieved through increased efficiency, improved customer satisfaction and minimize operational costs. Social media can contribute to this.

First and most importantly, online platforms can definitely improve the communication between the supplier and the customer. The supplier can get direct feedback regarding its services and the customers’ demands. This will result with an improved customer service. Next, social media enables better communication within the whole supply chain. This can greatly contribute to the complete management system, increase productivity, and save time and money. Lastly, social media networks are a great way to become more visible on digital media, helping promote your business worldwide. It also helps reach potential suppliers in same or different markets.

Social Media will be more useful to logistics companies soon.

Not many logistics companies use social media to build relationships among their logistics partners, but now with the increasing usage of social media, logistics companies are making efforts to leverage this medium to reinforce customer engagement, increase customer service and to reduce costs.

The truth is, for now, current logistics companies’ social media focus has been localized only making a presence in the platform but with increasing customer demands and active use of social media for networking and collaboration, companies might increase customer loyalty, lower risks, improve efficiency and productivity, and deliver potential business opportunities.