Research Study: Social CRM in the Supply Chain Fall A World of Insights
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1 Research Study: Social CRM in the Supply Chain Fall
2 Research Methodology This survey was conducted online between September 9, 2011 and October 10, 2011 among business decision-makers with involvement in or responsibility for supply chain operations. Only individuals employed in the following verticals qualified to participate in the survey: Aerospace/Defense Contractor, Agriculture/Forestry/Fisheries, Construction/Architecture/Engineering, Energy/Utilities, Healthcare/Medical/Pharmaceutical/Bio-Tech, High Tech, Telecom & Utilities, Manufacturing & Process Industries, Mining/Oil/Gas, Retail, Transportation/logistics, or Wholesaler/Distributor. Sample members received an message inviting them to participate in the survey. Each sample member received a unique URL link to access the survey, which they could click on or paste into their browser. The survey closed on October 10, 2011 with a total of 150 qualified responses. The margin of error on a sample this size is +/- 8.0 percentage points. Responses to single select questions may not sum to 100% due to rounding. 2
3 Research Objectives Quantify the prevalence of social media activity between supply chain customers and their partners and transactions Gauge the impact supply chain vendors can have on their customers by making themselves available in the socialsphere To understand how supply chain customers use, and perceive the use of, social media when dealing with their partners Inquire about concerns with, or barriers to, supply chain customers using social media channels in their partner relationships and transactions Measure which social media channels are most preferred for use in supply chain interactions and for what purposes 3
4 All respondents participating in this research effort report responsibility in at least one aspect of supply chain operations at their organizations. Role and Responsibility in the Supply Chain Sourcing vendors (researching evaluating recommending vendors) Managing ongoing vendor relationships 57% 55% Negotiating contract(s) Invoicing/payment Purchasing/procurement 37% 36% 41% Supply chain strategy Order tracking 29% 29% Order reconciliation 22% Q2: With respect to your organization s supply chain transactions/vendors/partners, do you have involvement in or responsibility for any of the following? Base: 150 qualified respondents 4
5 The use of social media sites to interact with or follow supply chain vendors, partners, or transactions is gaining some traction but is far from wide spread. Usage of Social Media to Interact with or Follow Supply Chain Vendors (NET) Any social media site/service Mainstream business networking sites/communities/forums Mainstream social networking sites/communities/forums Exclusive/private online groups, communities or forums Blogs from vendors or supply chain partners Media sharing sites Vendor-sponsored Wikis Public Wikis Social bookmarking sites Social review sites Microblogging sites None of the above - not using social media sites/services 6% 5% 3% 3% 1% 1% 1% 13% 22% 21% 40% 60% Q5: Are you using any of the following social media sites or services to interact with, or follow, any of your supply chain transactions/vendors/partners? Base: 150 qualified respondents 5
6 Results indicate that supply chain vendors could be doing a better job engaging their customers via social channels: 58% of respondents report they are totally unaware how their primary supply chain vendors are using social sites or that their primary supply chain partners are not using social sites to interact with customers. Awareness of Supply Chain Vendors Activities on Social Sites 23% 7% 35% I am very familiar with how my primary supply chain vendors/partners are using social media sites or services to interact with customers like me I have a general understanding of how my primary supply chain vendors/partners are using social media sites or services to interact with customers like me I have no idea how or if my primary supply chain vendors/partners are using social media sites or services to interact with customers like me 35% Not applicable, my primary supply chain vendors/partners are not using social media sites or services to interact with customers like me Q12: How would you characterize your level of awareness or familiarity with your primary supply chain vendors/partners usage of social media sites or services? Base: 150 qualified respondents 6
7 Respondents not leveraging social media for supply chain transactions/relationships most often report they don t find social media usage necessary; security/privacy issues and corporate use policies are also inhibitors. Reasons for not Leveraging Social Media in the Supply Chain* No need/not necessary/no benefit 26% Have our own system/use /direct contact 13% Classification/confidentiality/security issues Corporation/company/office policy-no access at work 10% 10% Time constraints Not offered by vendors 3% 5% Other 7% N/A 13% Don't know 16% Q6a: Why aren t you using any social media sites or services to interact with, or follow, any of your supply chain transactions/vendors/partners? Base: 90 respondents not using social sites currently *Question was open ended, see appendix at end of report for raw responses 7
8 Fifty-seven percent of respondents not utilizing social media in supply chain transactions/relationships report they would be likely to utilize these channels if they became available. However, widespread adoption among this group would not be immediate. Likelihood of Using Social Media in Supply Chain Transactions/Relationships If Opportunities are Presented 7% 24% 43% Never In more than two years In one to two years Less than one year Immediately 21% 4% Q6b: If the opportunity was made available to interact with, or follow, any of your supply chain transactions/vendors/ partners using social media sites or services, when would you be most likely to start utilizing these channels? Base: 90 respondents not using social sites currently 8
9 Respondents not currently utilizing social media for supply chain purposes, but receptive to doing so in the future, are most likely to report an affinity for mainstream business networking sites and exclusive online sites. Social Media Sites Likely to be Used When Adopted for Supply Chain Purposes Mainstream business networking sites/communities/forums Exclusive/private online groups, communities or forums 37% 37% Mainstream social networking sites/communities/forums 27% Vendor-sponsored Wikis Blogs from vendors or supply chain partners 20% 22% Media sharing sites 6% Public Wikis Social review sites Other 4% 4% 4% Q6c: Which type of social media sites or services are you most likely to use if/when you do start to use these sites/services to interact with, or follow, any of your supply chain transactions/vendors/partners? (Please check all that apply) Base: 51 respondents not using social sites currently but likely to do so in the future 9
10 Combining both current users of social sites for supply chain purposes and likely future users of social sites for supply chain purposes we observe that mainstream business and social sites have the broadest appeal. Usage/Expected Future Usage of Social Media to Interact with or Follow Supply Chain Vendors (NET) Current and Future Users Likely Future Users Current Users Mainstream business networking sites/communities/forums Mainstream social networking sites/communities/forums Exclusive/private online groups, communities or forums Blogs from vendors or supply chain partners Media sharing sites Vendor-sponsored Wikis Public Wikis Social bookmarking sites Social review sites Microblogging sites Q5: Are you using any of the following social media sites or services to interact with, or follow, any of your supply chain transactions/vendors/partners? Q6c: Which type of social media sites or services are you most likely to use if/when you do start to use these sites/services to interact with, or follow, any of your supply chain transactions/vendors/partners? (Please check all that apply) Combined base: 111 respondents either using social sites currently or likely to do so in the future 1% 1% 3% 5% 10% 14% 17% 35% 41% 47% 10
11 Respondents not currently utilizing social media for supply chain purposes, but receptive to doing so in the future, see many potential uses including: tracking industry trends, tracking shipment status and obtaining pricing. Potential Future Uses of Social Media in the Supply Chain Among Respondents not Currently Leveraging Social Sites To stay on top of industry trends To track status of shipments/deliveries To obtain pricing To see product reviews/rankings To obtain information/perspective that will help me make decisions To keep informed about vendors offerings To engage in dialogue with experts or industry peers To obtain product specifications To obtain information/perspective that will help me influence a decision To monitor/manage invoicing and payments To resolve customer service issues To obtain discounts on purchases To participate in events sponsored by a vendor or potential vendor To submit opinions about products/services To interact with other users in a community setting To purchase products/services To use tools such as calculators worksheets etc. To refer or promote a vendor or partner to others To submit ideas for new products/services Other 8% 6% 6% 4% 45% 43% 39% 35% 35% 33% 31% 29% 27% 25% 25% 25% 22% 18% 18% 18% Q6d: How are you most likely to use social media sites and services if/when you do start to use these sites/services to interact with, or follow, any of your supply chain transactions/vendors/partners? (Please check all that apply) Base: 51 respondents not using social sites currently but likely to do so in the future 11
12 Tracking industry trends is also the number one use-case for social media in the supply chain among current users, but they are also more focused than future users on the community aspects of social media. To stay on top of industry trends To engage in dialogue with experts or industry peers To interact with other users in a community setting To obtain information/perspective that will help me make decisions To keep informed about vendors offerings To see product reviews/rankings To participate in events sponsored by a vendor or potential vendor To obtain information/perspective that will help me influence a decision To track status of shipments/deliveries To obtain product specifications To obtain pricing To obtain discounts on purchases To submit opinions about products/services To submit ideas for new products/services To refer or promote a vendor or partner to others To resolve customer service issues To purchase products/services To monitor/manage invoicing and payments To use tools such as calculators worksheets etc. Other Current Uses of Social Media in the Supply Chain Q7: How are you using or most likely to use social media sites and services to interact with, or follow, any of your supply chain transactions/vendors/partners? (Please check all that apply) Base: 60 respondents currently using social sites 3% 10% 33% 28% 28% 27% 23% 23% 22% 20% 20% 18% 18% 18% 17% 45% 43% 42% 42% 62% 12
13 Among the social channels that have gained the broadest acceptance, exclusive/private online communities are delivering the most value to users.* Value Derived from Using Social Media Channels in the Supply Chain Type of Site Extremely valuable Very Valuable Somewhat valuable Not at all valuable Mainstream business networking sites Base: 33 Mainstream social networking sites Base: 32 Exclusive/private online groups, communities or forums Base:20 27% 39% 33% 0% 22% 38% 31% 9% 30% 60% 5% 5% Q8: In general, how valuable do you find each of the following as a means for interacting with, or follow, any of your supply chain transactions/vendors/partners? Bases denoted in table *NOTE: Due to low base sizes, results are directional 13
14 At least half of those engaging with supply chain partners in the social sphere are frequently or occasionally sharing information with others. Frequency of Sharing Information from Supply Chain Partners on Social Sites 17% 10% 33% 40% Frequently Occasionally Rarely Never Q9: How often do you share, like, engage with or re-tweet information you see from your supply chain vendors/partners on social media sites or services? Base: 60 respondents currently using social sites 14
15 Even though interaction frequency is low there are tangible benefits from even limited customer-vendor social media relationships. Improvement in Customer/Vendor Relationships Due to Social Media Interactions To a great extent Somewhat To little extent Not at all Overall satisfaction with a supply chain vendor/partner 20% 40% 30% 10% Customer service experience from a supply chain vendor/partner 15% 50% 23% 12% Feelings of brand loyalty toward a supply chain vendor/partner 10% 53% 25% 12% Likelihood of purchase from a supply chain vendor/partner 10% 43% 37% 10% Willingness to recommend a supply chain vendor/partner to others 8% 60% 22% 10% Level of spending with a supply chain vendor/partner 3% 43% 33% 20% Q10: To what extent has your usage of social media sites or services to interact with, or follow, any of your supply chain transactions/vendors/partners improved the following? Base: 60 respondents currently using social sites 15
16 One-third of respondents indicate that their supply chain partners can improve their standing by providing a presence on social sites. Those currently using social media to interact with supply chain partners are more likely to report that the absence of this communication channel would negatively impact vendor opinion. Improvement and Erosion of Vendor Opinion Due to Social Media Availability Yes No Does or would the opportunity to interact with, or follow, any of your supply chain transactions/vendors/partners through social media sites and services positively influence your opinion of a vendor/partner? 33% 67% Does or would the absence of opportunities to interact with, or follow any of your supply chain transactions/vendors/partners through social media sites and services negatively impact your opinion of a vendor/partner? 17% 83% Q13: Does or would the opportunity to interact with, or follow, any of your supply chain transactions/vendors/partners through social media sites and services positively influenc your opinion of a vendor/partner? Q14: Does or would the absence of opportunities to interact with, or follow, any of your supply chain transactions/vendors/partners through social media sites and services negatively impact your opinion of a vendor/partner? Base: 150 qualified respondents 16
17 Leading concerns about using social sites to interact with, or follow, supply chain vendors or transactions include security and privacy concerns. However, many respondents don t have any concerns. Concerns Over Using Social Sites in the Supply Chain* Privacy/Confidentiality 20% Security 17% Accuracy of information Unprofessional Unnecessary information Don't feel it is beneficial/no need 4% 4% 3% 2% Other 9% None/Not applicable 41% Don't know 1% Q11: What concerns, if any, do you have about using social media sites and services to interact with, or follow, any of your supply chain transactions/vendors/partners? Base: 150 qualified respondents 17
18 Facebook is the leading social destination for respondents participating in this study; LinkedIn and Twitter are also commonly visited social sites for personal and/or business use. Social Media Sites Regularly Used for Personal and/or Business Use* Facebook 57% LinkedIn 30% Twitter 15% Youtube Google 4% 3% Other 9% None/N/A 20% Don't know 1% Q15: Which social media sites do you regularly use or visit for personal and/or business use? Base: 150 qualified respondents *Question was open ended, see appendix at end of report for raw responses 18
19 Respondent Profile A broad cross-section of industries are represented in the sample for this study. Company Industry Manufacturing & Process Industries 30% Healthcare/Medical/Pharmaceutical/Bio-Tech 17% Energy/Utilities Construction/Architecture/Engineering 11% 10% Retail Wholesaler/Distributor Aerospace/Defense Contractor 7% 7% 7% High Tech, Telecom & Utilities 5% Transportation/logistics Mining/Oil/Gas Agriculture/Forestry/Fisheries 3% 2% 2% Q1: Which of the following best describes your organization's industry or function? Base: 150 qualified respondents 19
20 Respondent Profile Respondents to this survey hold predominantly manager and higher job titles. Job Title* Manager 49% Staff 21% Director 13% Sr. Management/CFO/Vice President/General Manager 12% CEO/President/Partner/Owner 4% Other 2% Q1: Which of the following best describes your organization's industry or function? Base: 150 qualified respondents *Question was open ended, see appendix at end of report for raw responses 20
21 Respondent Profile The mean company size for organizations participating in this research is ~7,700 employees and ~$3B in annual revenues. Company Size (by Number of Employees) Mean: 7,674 Company Size (by Revenue) Mean: $3.1B 20,000 or more 22% 10,000 19,999 5% 5,000 9,999 8% 1,000 4,999 13% % % % Less than % Not sure 19% $10 billion or more 16% $5 billion to $9.9 billion 9% $1 billion to $4.9 billion 9% $500 million to $999.9 million 11% $100 million to $499.9 million 9% Less than $100 million 31% Prefer not to disclose 6% Not sure 9% Q1: Which of the following best describes your organization's industry or function? Base: 150 qualified respondents 21
22 Conclusions Current adoption of social media for use in the supply chain is relatively low and is more often used as a method of community participation as opposed to replacing or augmenting traditional CRM activities. While current adoption is low there is interest at organizations not currently using social media in their supply chain relationships to do so. One key inhibitor to adoption is the willingness and ability of supply chain vendors to engage their customers via social channels. Among both current and future users, opportunities to engage seem to be focused primarily on mainstream services as well as private communities, vendor wikis and blogs. This suggests vendors may start by creating a corporate presence on Facebook, Twitter, LinkedIn and perhaps targeted user communities as a place to start the conversation with their customers. WHY? Respondents want to stay on top of industry trends but also want to gather specific vendor-related intelligence- whether that is pricing, product specs, shipment status etc. Respondents want social media to be a tool for managing vendor relations BUT also a tool that can help inform purchase decisions and to engage in dialogue with vendors/experts. Respondents that are utilizing social media in the supply chain provide evidence that they are deriving value from doing so and that vendors that they are engaging with are more well thought of as a result of their availability. However, in order for near-term adoption to really grow vendors must educate the market on the benefits of social media in the supply chain, increase the visibility of their social presence, and assuage privacy, confidentiality, and security concerns. 22
23 IDG Research Services specializes in marketing and media-related research for technology and B2B marketers. As a division of International Data Group (IDG), the world's leading technology media, research, and event company, IDG Research Services brings the resources and experience of a large, global company to its clients in the form of a small, customer-focused business. For more information please visit Janet King GM/Vice President Office: Fax: janet_king@idgresearch.com Headquartered in Portland, Maine, and with an office in Washington, D.C., Kemp Goldberg Partners is a nationally recognized advertising, public relations, public affairs and interactive agency that helps its clients build and maintain business momentum. The talented people at Kemp Goldberg Partners work hard to connect clients with their markets and help brands find their voice. For more information on how Kemp Goldberg Partners can help you connect, please visit Follow Kemp Goldberg Partners on Twitter at and on Facebook at David Goldberg Principal Office: x209 dgoldberg@kempgoldberg.com 23
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