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Supply Chain Twitter

Posted on Mar 20 2009 | By Adrian Gonzalez

Last week, my colleague Steve Banker wrote a posting on evaluating the B2B communication capabilities of logistics service providers (3PLs).  Among the things he highlighted was the need to have “high tech, low tech, and no tech” approaches to on-boarding trading partners.  This got me thinking again about something I wrote about last year: is there a role for social media technologies, like Twitter or Facebook, in supply chain management?

Coincidently, there was an article in this month’s DC Velocity on how a 3PL is using Twitter to send updates to clients about facilities and company developments (e.g. “Our Columbus Ohio Facility Sets a New Record in Throughput!”).  Not exactly what I have in mind in terms of B2B communication, but it’s certainly a start.

Putting security and integration issues aside (these are valid, but solvable concerns), why not use Twitter as a “mid tech” B2B communication tool, another way to on-board trading partners?  For example, “tweets” (as Twitter postings are called) could be used by suppliers to send PO status information, by carriers to send delivery status updates, or by shippers, carriers, and 3PLs to tender loads or find capacity.  Granted, this would not be a workable solution for high-volume transactions, but it’s vastly better than sending faxes or making countless telephone calls, which is how many companies are managing their supply chains today.

It may take some time, however, for this vision to become reality.  RedPrairie recently conducted a web survey on social media use among supply chain professionals, and they were kind enough to let me share the results publicly.  The survey was sent to management level and above employees at companies that purchase/use supply chain and retail operations solutions.  More than 800 people responded to the survey, and they received 486 completed surveys.  As the slides below show, the majority of responders were either unfamiliar or did not use the surveyed technologies.

Source: RedPrairie, results of social media survey

Source: RedPrairie, results of social media survey

Source: RedPrairie, results of social media survey

Source: RedPrairie, results of social media survey

Also, in submitted comments, respondents were either very much in favor of these new technologies and view them as part of the future, or they were very much against them, feeling they are a waste of time or blurred the personal/professional line.  The ages of the respondents are not known, but I’m willing to bet this polarity in viewpoints is age related, at least partially.

Or maybe it’s simple shortsightedness, as I wrote in “Facebook for Supply Chain Management” last year, where I told the story of how Motorola (where I worked in the 90s) was very concerned about allowing employees to use the Internet and Web, for fear everyone would be surfing porn sites all day.  Although this may have been a valid concern at the time, Motorola (like so many other companies) did not foresee how these technologies would ultimately transform the way we live and work.  I think we’re at a similar inflection point today with social media technologies.

But what do you think?  Will social media technologies like Twitter and Facebook play a role in supply chain management?  Do you currently use any of these sites, and which ones do you think have the most potential for supply chain management?  Post a comment (or a tweet, Logistics Viewpoints is on Twitter too!) and let me know.

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3 Comments

1

It’s been less than 3 hours since I posted this piece and I already have 5 new followers on Twitter. Interesting…

2

Interesting and timely article. I think there is definitely a role for “Twitter-like” applications such as real-time performance management. These systems update hourly, daily or monthly key performance indicators (KPIs) as they change. In the container and intermodal world, Optimization Alternatives based in Austin has a product called Vantage Transportation that allows the user to see KPIs change as activities happen at the terminal. For example, operators can track the number or percent of store door loads that have not yet left the terminal and compare this to the terminal’s promised service level. We saw Vantage in use on a wall-mounted dashboard display at APL’s container terminal in Oakland, CA and were quite impressed. -James Davidson

3

Great timing with this article – I definitely agree that there is much room for social networks to make an impact on SCM, in all industries. I encourage you and other interested readers to take a look at The Aidmatrix Foundation, a 501(c)(3) tech service provider, that has essentially established social networks that streamline the flow of donated consumer goods, medical products, food, volunteers, etc.

Your article made me realize that Aidmatrix is indeed using the concept of social networks to vastly enhance SCM in the non-profit sector. For example, there are tens of thousands of food banks in the US which are connected the Aidmatrix ‘network’ as recipients. At the same time, there are several corporate food suppliers (i.e. Kraft, General Mills, etc.) that are connected to the same network as suppliers. This allows food banks to post ‘needs’ as well as accept/decline donations. And suppliers can post donations and simply wait for a recipient to bite.

After reading your article, I am now seeing this Aidmatrix operation from a new perspective:
Each node in the network(supplier, administrator, or recipient) is comparable to a single individual trying to start a conversation with the right people about their needs. So essentially, Aidmatrix has created a social network in which communication is constrained by a limited lexicon including words like “offer”, “need”, “donate”, “want”, “thank you”, and “you’re welcome.”

Participants in this social network exchange information about excess supplies, needed goods, urgency, and transportation. And thus, it appears that social networks are already playing their part in SCM – at least in the non-profit world!

http://www.aidmatrix.org Feel free to email me if you want to learn more about what we do at Aidmatrix! cgupta731@gmail.com

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