aitp strategic power of social media for the supply chain

SOCIAL MEDIA:Connecting with Partners and Consumers the

new-fashioned way!

www.sprcompanies.com

IT Professional Services Firm Over 35 years in the Midwest

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About SPR Companies

Leadership Impact

SPR Companies

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.

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Supply Chain Challenges

• 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

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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:

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??

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SOCIAL MEDIAGet Past the Hype…. Get Down to

Business

SOCIAL MEDIA

Mission & Vision

Strategic Plan

Metrics for Accountability

Marketplace Message

Differentiation

So

cial

So

luti

on

Su

ites

Exe

cuti

on

Fra

mew

ork

• Ahead of Competition• Out of Price Wars

• Direction• Focus• Flexibility

• Delivery to Goals• Accountability• Ownership• ROI

• Feedback• Achievement Targets• Guidance

• Communication• Memorable & Impact• Value• Influence

Innovation

Net Promoter

Influence Market

Leadership Impact of Social Media

Engagement

Many Moving Parts make up a Successful

SOCIAL SOLUTION SUITE.

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.

Market Place Message

Campaign

Social Web

PromoterBuzz

MonitorMetrics

Social Solution Suite

MARKET PLACEMESSAGE•

Demographics

• Psychographics

• Industry

CAMPAIGN• Social Channels• Set Metric

Targets• Timing

SOCIAL WEBPROMOTER

BUZZ

MONITOR METRICS

Strategic Objective

• Key Metric Target

Net Score• Key Metric Result

Influence

SOCIAL SOLUTION

SUITEFeedback

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

Social Media Listening Tools

Listening Tools

• Free • Pay

Key Metrics

• Unique visitors• Pages visited• Time on site• Bounce rate• Posts• Comments• Post:Comment ratio• Search engine

ranking

• Sentiment (NPS)• Reviews• Recommendations• Referrals• Tweets• Retweets (RT)• Mentions• Connections• Followers

September 2008 to September 2009 visits to

social networks were up 62%

Social Network Demographics

Statistic Facebook LinkedIn MySpace Twitter YouTube

Monthly Unique Visitors

129M 15M 49M 23M 84M

Gender % 43M/57F 50M/50F 36M/54F 43M/57F 50M/50F

Largest Age Group (% of whole)

45-54 (24%)

35-44 (31%)

0-17 (34%) 35-44 (29%)

18-34 (35%)

2nd Largest Age Group

36 -44 (20%)

45-54 (28%)

45-54 (19%)

45-54 (20%)

35-49 (24%)

Average Household Income

50-75K (36%)

75-100K (23%)

25-50K (39%)50-75K(35%)

25-50K (30%)50-75K (27%)

30-60K60-100K100K+ (27%)

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

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%)

Connecting with Partners and Consumers the new-fashioned way!

Who are your buyers?

What are your buyers talking about?

When and Where are your consumers talking about

your product?

Why are your consumers talking about your product?

Supply Chain ChallengeWhere should you distribute

your product?

What should my safety stock be?

Supply Chain Challenge

MARKET PLACEMESSAGE•

Demographics

• Psychographics

• Industry

CAMPAIGN• Social Channels• Set Metric

Targets• Timing

SOCIAL WEBPROMOTER

BUZZ

MONITOR METRICS

Strategic Objective

• Key Metric Target

Net Score• Key Metric Result

Influence

Feedback

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.

Step 1 – Strategic Objective

• Immediate responses to customer feedback, issues, concerns, and complaints.

• Key Metric Target Customer Satisfaction Sales Volume

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• Strategic Objective• Key Metric Target

Product : 20QIt is a mind reading game basedOn 20 questions. Everyone willlove it especially your tween. Perfect stocking stuffer.

Step 2 – Market Place Message

• Demographics Children between the

ages of 10 – 12.

• Psychographics Inquisitive children Children that like

puzzles

• Industry Electronics

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MARKET PLACEMESSAGE

• Demographics•

Psychographics• Industry

Step 3 – Campaign

• Social Channels Twitter FaceBook

• Set Metric Targets 90% Customer

Feedback Positive 24 Hour Response

Turnaround

• Timing Holiday Delivery

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CAMPAIGN• Social Channels

• Set Metric Targets• Timing

Step 4 – Social Web

• Establish Presence Message Set Up Update Frequency Monitoring of Content Governance

— Who owns it.— Who decides what posts— Who replies— Who responds to metrics— Who owns response times

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SOCIAL WEB

Step 5 – Promoter Buzz

• Influence Message to guide

response

• Feedback Love It, Great,

Awesome, Hate It, Bad, SUX,

• Magnitude Numbers of

Responses Location

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PROMOTERBUZZ

Step 6 – Metrics Monitoring

• Tools to Use Hootsuite Facebook Analytics

• Results Positive Feedback Negative Feedback Turnaround on Issues

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MONITOR METRICS

Step 7 – Net Score

• Immediate responses to customer feedback, issues, concerns, and complaints.

• Key Metric Target % Positive Responses Average Response

Time to customer

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• Net Score• Key Metric Result

MARKET PLACEMESSAGE•

Demographics

• Psychographics

• Industry

CAMPAIGN• Social Channels• Set Metric

Targets• Timing

SOCIAL WEBPROMOTER

BUZZ

MONITOR METRICS

Strategic Objective

• Key Metric Target

Net Score• Key Metric Result

Influence

Feedback

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.

Mood Madness

Punch

Step 1 – Strategic Objective

• Where should I send the product and how much safety stock should I have?

• Key Metric Target Geographic Volume

Forecast Accuracy Sales Volume (Internal

System)

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• Strategic Objective• Key Metric Target

Product - Mood Madness Punch This punch turns colors based on the temperature it encounters. Kids love it. It is a great summer treat for both indoors and outdoors alike. You can buy it in a grocery store near you.

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

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MARKET PLACEMESSAGE

• Demographics•

Psychographics• Industry

Step 3 – Campaign

• Social Channels Facebook Twitter

• Set Metric Targets Geographic Feedback Sales Volume (Non

Social Media)

• Timing Spring Months

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CAMPAIGN• Social Channels

• Set Metric Targets• Timing

Step 4 – Social Web

• Establish Presence Message Set Up Update Frequency Monitoring of Content Governance

— Who owns it.— Who decides what posts— Who replies— Who responds to metrics— Who owns response times

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SOCIAL WEB

Step 5 – Promoter Buzz

• Influence• Feedback

Love It, Great, Awesome,

Hate It, Bad, SUX, Unexpected uses Mood Madness Punch Moody Mojitos

• Magnitude Geography of largest

volume of feedback Audience

Segmentation47

PROMOTERBUZZ

Step 6 – Metrics Monitoring

• Tools to Use Hootsuite Facebook Analytics Omniture Networked Insights

• Results Geography Quantity of Responses

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MONITOR METRICS

Step 7 – Net Score

• Immediate responses to customer feedback, issues, concerns, and complaints.

• Key Metric Target % Positive Responses Average Response

Time to customer

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• Net Score• Key Metric Result

MARKET PLACEMESSAGE•

Demographics

• Psychographics

• Industry

CAMPAIGN• Social Channels• Set Metric

Targets• Timing

SOCIAL WEBPROMOTER

BUZZ

MONITOR METRICS

Strategic Objective

• Key Metric Target

Net Score• Key Metric Result

Influence

Feedback

C-Level involvement in supply chain: More

recognition on their part of the impact of the

supply chain, whether it’s managing the inventory, managing the sourcing,

managing the transportation.

Questions:Kathie.topel@mpspartners.com

Questions:tnilson@sprcompanies.com@talentline411

Join our LinkedIn Group:http://tinyurl.com/spr-leadership

THANK YOU!