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.
To optimize your supply chain management, no doubt you have invested heavily in information technologies over the past decades. By now, you probably have an exact picture of your inventory, can track components, can follow your product through each stage of production and are aware of incoming orders. Since in all likelihood your competitors are also running similar programs, what… Read more »