By Zoryana Zagorodnya, SAP
The impact of social media on consumer behavior, and how it affects supply chain dynamics, cannot be underestimated. Case in point: a recent TikTok video of a Canadian influencer with a recipe for cucumber salad went viral and caused a shortage of cucumbers in Iceland. While other factors contributed to the shortage, TikTok is primarily to blame as farmers in Iceland couldn’t keep pace with the appetite of consumers eager to recreate the recipe in their own kitchens, according to this BBC article.
When a vitral video triggers a surge in demand, businesses should ask themselves how they can stay resilient in the world full of disruptions. Let’s delve into some strategies to maintain a robust and adaptable supply chain in the face of unpredictable events.
Unleashing the Power of Social Commerce
Social commerce, the intersection of social media and e-commerce, has become a game-changer in the retail landscape. Statistics shows, that in 2023, sales through social networks accounted for an estimated 18.5 percent of total online sales. This figure is expected to continue growing in the coming years.
While many businesses have already started utilizing social commerce as a powerful tool to drive their sales, some are still struggling to keep up with the sudden spikes in demand that are caused by social media.
Modern supply chains can not afford to lag behind and that is why keeping a pulse on emerging trends becomes a necessity. By proactively monitoring social media platforms and staying ahead of the curve, businesses can identify potential demand-impacting trends before they hit the mainstream. This allows them to plan ahead, adjust their supply chain strategies, and ensure they’re ready to capitalize on the next big thing.
Stay as cool as a cucumber
In the face of the recent cucumber shortage in Iceland, businesses can greatly benefit from harnessing predictive analytics to navigate the complexities of supply chain management. By analyzing a wide range of factors—including inventory levels, supplier risks, weather patterns, and market fluctuations—companies can proactively anticipate and prepare for potential challenges and disruptions. Demand forecasting and predictive analytics empower organizations to identify disruptions early and respond swiftly, fostering improved collaboration with suppliers.
By proactively identifying vulnerabilities in their supply chains and implementing strategies to mitigate risks, businesses can not only overcome challenges but succeed in the face of unforeseen events.
Emerging technologies such as Artificial Intelligence (AI), machine learning (ML), and cloud services are revolutionizing the supply chains as well. These innovative tools enable businesses to forecast demand more accurately and prepare for unforeseen events, be it a local produce shortage or a global event.
Modern world requires modern solutions
AI itself as a tool holds significant potential for predicting events and facilitating strategic decision-making. By integrating AI into their planning processes, businesses can enhance their ability to navigate the challenges posed by social media-driven demand spikes, like the one experienced in Iceland, to ensure a more resilient supply chain.
The Icelandic cucumber shortage is just a reminder that the spikes (or dips) in demand can happen in any place in the world. When a single social media trend can send demand skyrocketing, it becomes crucial for supply chain leaders to prioritize resilience and adaptability.
By embracing this challenge and harnessing the power of modern technologies, supply chain leaders can drive growth, innovation, and success in their organizations.
To discover key strategies for building risk-resilient supply chains, download the Oxford Economics Report: “5 Supply Chain Strategies to Achieve Resiliency and Avoid Risk.”
