When you think of social media, popular networking websites like Facebook and Twitter may be the first applications that come to mind, however many companies are leveraging more robust social platforms to better plan and control their supply chain. Data mining, data sharing and online collaboration are just a few ways that social media can improve supply chain efficiency. The term supply chain management is relatively new and was first published in the Financial Times in 1982. However, it wasn’t until the late 1990s when the term began to take hold. The term supply chain refers to the process involved in the production and distribution of a product or service. To explain the term further, I will use an example of an Oreo. The beginning of the supply chain starts with sourcing ingredients for the product such as sugar and cocoa. Other points of the supply chain of an Oreo include shipping, manufacturing, distributing, retail sales, consumption and finally waste disposal. Supply chain management strategies requires a total view of the system to optimize business processes. Having control over supply chains are essential for businesses as it impacts costs and risks, and because today’s customers are demanding transparency of it. For example, customers want to know where the foods they eat or the clothes they wear come from, and are asking companies to provide information about sustainability and ethical sourcing.
The supply chain plays a pivotal role in the overall success of an organization, but even more so in the fresh food sector. Restaurants and other food related operations are always looking at ways to cut costs and maximize profits in the most effective and efficient methods possible. Whether it be healthcare, restaurant chains or even small mom and pop type restaurants, GFS understands that managing all those moving parts can be an overwhelming aspect of doing business. GFS is the largest family operated distributor in North America that has been running for over 115 years and services restaurants, universities, healthcare and a variety of other foodservice operations. Logistics and supply chain challenges have been at the core of the GFS company fabric since it’s establishment in 1897, but being able to manage the supply chain and its intricacies in 2017 is a different dynamic entirely. In addressing this fundamental concern, GFS developed “GFS Connect” with the goal of providing the customer total traceability and accountability anywhere, anytime in an easy and convenient way: “GFS Connect Mobile is the companion application to GFS Connect, offering you access to the same information on a mobile device. This one-of-a-kind tool lets you run your business on the go, anytime, anywhere. It’s the first and only mobile application available to food service operators throughout Canada – and it’s easy and convenient to use.”- GFS Canada Website
On the day I read the content of this case study I had a nasty headache. As I reached for my bottle of Tylenol I wondered how does the manufacturing industry use social media and the resulting supply chain management ? Having close relatives in this industry and for confidentiality reasons I decided to look into the manufacturing/vendor side as opposed to discussing a large well-known pharmaceutical company. What I learned at this level of this industry was it has various levels of complexities of graphs, processes and disconnected communications.
As one of the world’s most renowned supply chain managers most people would not question that Walmart has ‘perfected’ their product management, as they have products made in over 70 countries and manage an average inventory of $32 billion. However, during this Halloween season Walmart seems to have dropped the ball when listing a Halloween costume from supplier, Totally Costumes. This highly controversial costume is named, Razor Blade Suicide Scar Wound Latex Costume, it is a stick on latex scar that looks like a fresh wound from the blade of a razor. The wound is designed to be worn on wrists to look as though the individual has attempted to take their own life. Bloggers, Nicole Lyons & Stephanie Bennett-Henry, recently caught eye of this costume while it was posted on Walmart’s online store and responded to the item on, thelithiumchronicles.org, in a letter titled, “Dear Walmart”. In the letter the two go on to explain how if the company would like to do this costume justice they could go on to make an entire line-up of costumes “to make a buck off of one of the most devastating things that could ever befall a family”. They suggest to go along with the latex scars the individual could wear a sash that says, “I finally did something right”, and even have blood that shoots out of the veins after the razor finally cuts through the right vein. They suggest adding a straightjacket and a pail of meds for the individuals who do not “get the job right” and have to live knowing they could not succeed at that either. They also added the idea of a speaker that repeats a permanent goodbye to haunt those they are leaving behind. The idea of a Grieving Mother Costume was even brought forward to add some cash to the corporations pocket that would include, “ a lifetime of guilt, stigma, and shame … some latex wrinkles for the torment of unanswered questions about what they could have done differently, and why couldn’t they see the signs”. The letter goes on to add a Suicide Survivor Costume saying, “You’d add one of those tacky letters you carry, like an “F” for Failure or “D” for Didn’t do it right, or “W” for Walmart is a disgusting corporation who makes money off of the backs of people who battle every … day with their own… Read more »
When Lululemon was founded in 1998, it was a yoga studio. As the business grew, it became a brand committed to selling the best yoga wear that the company could manufacture. Lululemon understood that their target market valued sustainability, and they designed their supply chain with that in mind. They strive to manufacture products that are free of cruelty, whether that be human or animal, and they try to keep environmental damage to a minimum. Social media has helped the company monitor the current values of their customers. They then update their practices to stay true to the beliefs of their core consumer base. This not only helps their supply chain stay committed to the company’s values, but also provides Lululemon with a chance to market its product.
Alibaba, the largest online business company, does not manufacture or stock products on its own; Uber, the largest transportation network company globally, actually owns no vehicles; Airbnb, leading hotel and travel company, does not own any real estate. One thing they have in common is that they all create evolutionary ideas to disrupt and reform competitive landscape. Owning no inventory nor product doesn’t stop Alibaba being the supply chain management guru. In fact, in April 2016 Alibaba Group has officially surpassed Walmart and become the world’s largest retailer. This set the milestone when the world’s largest retail market shifted from offline to online. “We used 13 years to demonstrate the power of a different business model compared with brick-and-mortar retailers,” the Alibaba Group said. A key success factor for Alibaba is to delivery comprehensive while tailored digital supply chain process to customers.
There’s no denying that social media has become a part of our every day lives. It has evolved far beyond individual and personal use, and is now a necessity in the business world. You would be hard pressed to find a company without a Facebook page, and any one that doesn’t won’t be around for very long. Even a business like Camp Grounded, a summer camp for adults that is built on the concept of “unplugging” and leaving all of your electronics at the door 1, has their own Facebook, Twitter, and Instagram accounts on which they do their advertising. It is used everywhere. And while the primary function of social media among businesses is to stay connected with customers and to carry an online presence, it can also be used as a way to increase efficiency and improve upon supply chain management. One major issue most companies face when managing their supply chain is communication. It’s important that all suppliers and manufacturers work together, but especially if different components are being sourced from different time zones, maintaining efficient communication can be challenging. This is where social media comes into play; it’s all about communication! If used correctly, social media should help the supply chain become more streamlined and efficient.2
DB Schenker supports industry and trade in the global exchange of goods: in land transport, worldwide air and ocean freight, contract logistics and supply chain management.1 Globally they employ over 66,000 employees at over 2000 locations. Their Canadian operations account for over 1600 employees at over 40 locations. Roughly 3 years ago, DB Schenker started to utilize social media as part of their marketing strategy.
Amazon is a corporate behemoth that dominates e-commerce and e-fulfillment. What started out as an online bookstore is now a complex online ecosystem that involves thousands of moving parts, including employees, suppliers, and shippers. As Amazon expands and grows, the need to innovate and streamline their supply chain becomes paramount. One of the ways that Amazon innovates their supply chain management is via technology like mobile apps and social media. Their increasingly automated systems alleviate costs, and improve overall speed and productivity.
If you live in Ontario, have eaten in a food court, local restaurant or pub or ordered room service then chances are Flanagan Foodservice helped make your meal possible. Although they didn’t help prepare or serve the food, they did make sure that it arrived on time, fresh and ready to consume through their vast distribution network. From small operations to iconic food chains with multiple locations, Flanagan services over 6000 customers across Ontario. Let’s take a small step back for a moment to discuss this network before we get into how Flanagan is taking an innovative approach at social media and supply chain management.
In Spring of 1998 after recently being fired from a brewery, three friends set out on a canoe trip. That canoe trip would lead to a campfire conversation that would change all of their lives. Greg Taylor, Cam Heaps and Greg Cromwell “The Three Fired Guys” wanted to make a Pilsner that would compete with the best in the world. They did just that! Their brewery is named Steam Whistle, drawing from the inspirational sounds of steam rushing from factory whistles, signalling the end of a fulfilling workday and a time for personal reward.1 The Three Fired Guys built their company with a retro feel, when marketing of goods relied on the trust between manufacturer and consumers. Steam Whistle understands the importance of listening to their consumers and makes ever effort to do so by utilizing social media.
Alina Mozzhukhina, (December 8, 2015), How Zara Uses Supply Chain to Execute Business Model, https://www.tradegecko.com/blog/zara-supply-chain-its-secret-to-retail-success
The clothing brand Zara is world renowned for its affordable yet trendy, high quality products. With over 1,770 stores, Founder and CEO Amancio Ortega has grown his small store in Spain into a well-recognized fashion brand in more than 86 different countries! Fast Fashion Trends The secret to all this success? Zara has managed to keep up with the constant change in fashion throughout the world – whether it’s in Japan, Italy, Canada or the USA. Like a chameleon, Zara has been able to quickly adapt to the fast fashion trends. As a result of keeping up with constantly changing consumer trends, Zara ends up producing approximately 450 million items a year for their stores. Just walk into a store and speak to an associate. If you ask them when they expect new product, they always respond with something along the lines of “We’re getting new shipments in every day.” Are you now looking for that dress shirt you were thinking of buying last week? Chances are your size or that style is gone! If you get to the store a week too late, nearly half the products will be completely different.
If you’re looking to get things done around your home or yard, many turn to the quintessential home improvement store – The Home Depot. The entire essence of their company is helping YOU, the customer, get things done. But they really have a knack for getting things done FOR you as well. Let’s take a step back. Supply chain management (SCM) and social media have a rather new connection. As Ranjan Sinha points out in his post on LinkedIn on the subject: “There was once a time when companies were adding policies that discouraged their employees from using social media while on the job. Over the course of the last few years, this notion has taken a turn for the opposite.” Of course, we already know this – there are jobs in all sorts of fields these days that completely revolve around social media. Managing a Twitter feed, Instagram account, or blog could be someone’s primary function in his or her employment. The marriage of SCM and social media is what has changed.
Born in 1937 under the name of Trans Canada Air Lines, Air Canada is the results of the fusion of many Canadian airline companies. Serving customers from coast-to-coast and even abroad, the largest Canadian airline has built a strong and efficient supply chain management through the years. Did you know that Air Canada has put in place the first computerized reservation program in the world? The computer system ReserVec was introduced in January of 1963. Already making sure it is using the best technology possible, AC continues its growing supply chain on social media.
Purolator – History. (n.d.). Retrieved February 21, 2016, from http://www.purolator.com/purolator/resources-and-support/about-us/corporate-information/history.page
Utilizing social media and technology is an excellent way to ensure solid communication throughout the supply chain. Without communication, the chance of an error (or a perceived error) greatly increases. Such is the case with Purolator. Think about it—customers are entrusting their goods with the company, so it’s only right that the customer remains in-the-loop throughout the entire process. As you can see in the video below, Purolator is well-aware of just how important it is to simplify the supply chain process for customers.
Okay a show of hands… who doesn’t like chocolate? Anybody??? Didn’t think so. Perhaps one of the most loved foods in the world, chocolate comes in so many forms it’s virtually impossible to find someone that doesn’t like chocolate in at least one form. I don’t actually have any data to back that up, just my own theory that you’d have an easier time finding a unicorn or a Sasquatch. Perhaps I’m letting my own love of chocolate cloud my judgment but I can’t be that far off considering that the average Canadian consumes 5.5 kilograms or roughly 12 pounds of chocolate each year. Ferrero SpA is the fourth largest manufacturer of chocolate and confectionery products in the world, behind only Mars, Mondelēz International (makers of Cadbury, Oreo and many other brands) and Nestlé. The Italian manufacturer is probably most recognized as the makers of the famous Ferrero Rocher chocolates but are also responsible for bringing us Tic Tac, Kinder and Nutella. Ferrero is responsible for using about one quarter of the world’s hazelnut supply and have almost single-highhandedly caused the hazelnut industry to soar.
Being a mom, juggling work, and writing blogs for my Social Media for Business Performance course, keeps me very busy. My biggest challenge these days is finding time to go to a grocery store… or two… or three, just to pick up things I need for this week’s meals. Thank goodness for price matching! Time, is one of our most precious commodities yet every day we struggle with having less of it and craving more. So much so that we often succumb to paying a hefty price for it. It has revolutionized the way people buy groceries, giving busy professionals, parents, elderly, student’s and even businesses back valuable time they don’t have to spend shopping. The increased demand for this type of service has resulted in a large number of companies entering this online space. With competition being so fierce three factors will influence which business will rise to the top: Innovation, Speed of Delivery and Efficiency in their Supply Chain. The application of social media in the supply chain process is no longer an option but rather a requisite in order for a company to accelerate and propel ahead of the pack. “Using modern technologies, such as social media, can improve an organization’s supply chain management. It can create more visibility, improve communication, increase control, and reduce operational and labor costs. When you have a more efficient and stable supply chain, you can enhance your customer satisfaction. The ripple effect of using social media to improve your supply chain management can expand outwardly across virtually your entire organization, which is great for business.”
Organization: Christie Industry: Audio visual, manufacturing Contact(s): Ihor Stech, Executive Vice President, Operations (audio), Warren VanDrine – Commodity Manager, Global Supply Chain Management (written) Web references: Christie, ooVoo, Trello, Ushio, Inc., Adelante SCM, SupplyChain247, YouTube About Christie Christie is a global visual, audio and collaboration solutions company offering diverse solutions for business, entertainment and industry. Christie employs over 1,500 people globally… Read more »
Organization name: TEVA Canada Industry: Pharmaceuticals Name of contact: Antonio (Tony) Martins, formerly Vice President, Supply Chain at TEVA Canada and Ratiopharm Web references: Supplychain247.com – The Social Side of Supply Chain Management The WallStreet Journal – Teva to Acquire Generics Firm Computerworld.com – Drug maker goes social to end supply chain crisis Article: Want a Fast-Response Supply Chain? Facilitate People-to-People Communication… Read more »
Organisation Name : Zara Industry: Fashion Web References: Supply Chain Social Media and Supply Chain Impact of Social Media on Supply Chain Zara and Supply Chain 7 Rules of Supply Chain ZARA Social media comments about products, services, or companies offer very valuable information for the supply chain and associated processes. The challenge for any company is figuring out how to… Read more »
Organization Name: Mc Donald’s Industry: Restaurant Web Reference: McDonalds, Forbes, Wikipedia In this week’s blog I write about Mc Donald’s, the most recognizable and successful fast food chain in the world. McDonald’s has over 36,000 locations serving approximately 69 million customers in over 100 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees while the rest are… Read more »
Organization – Whirlpool Industry – Home appliances Contact – Brian Hancock, VP Supply Chain Whirlpool Corp. web references – Google, YouTube, Penske, Wikipedia Whirlpool Corporation is the world’s leading manufacturer (American) and marketer of home appliances, with annual sales of over $20 billion, employing more than 100,000 people. Whirlpool brands include Whirlpool, Maytag, KitchenAid, Jenn-Air, Inglis, Amana, Brastemp, and other major brands. Today, social media… Read more »
Company: Ikea Industry: Consumer Furniture Web References: Ikea, Supply Chain 24/7, Sweden.se, Wikipedia , Trade Gecko Blog, YouTube Ikea is the largest furniture retailer in the world. They are well known for their unique self assemble furniture, and low price points. Founder Ingvar Kamprad’s philosophy that “that anyone should be able to afford stylish, modernist furniture” was executed by selling flat packed furniture at modest… Read more »
Company: Dairy Queen Canada Industry: QSR, Food and Beverage Contact: Tom Marranca, Equipment Manager Web References: Dairy Queen on Wiki, DQ selects Instill for Promotion Managment Solution; Itrade Network I had an open discussion with Tom Marranca, Equipment Manager, for CDQ, a co-op owned by franchisees to support franchisees under the Dairy Queen umbrella. Tom has worked with DQ for over… Read more »