The impact of social networks on supply chain management: Case studies of the food, fashion, and cosmetics industries

Abstract

As the world has faced changes due to the pandemic and war in Ukraine, social networks are gaining growing importance in global supply chain management. In the article, the authors analyze the impact of social networks on global supply chains and identify the negative and positive factors of social media for supply chains. The conducted analysis of the literature, media, and social networks revealed dual effects of social media, such as the phenomenon of "cancel culture", and "buycott". However, it is worth noting that there were noticed to be more negative than positive effects on the business supply chain. First, the insufficient risk assessment of social networks can cause negative consequences for businesses, including damaged reputation, discontinued production and supply of a product or a brand, financial losses, fines, shareholder dissatisfaction, and other damages. Second, social networks not only provide opportunities to promote business products but also directly contribute to increasing brand and business success. Furthermore, the authors argue that there is an additional positive effect on public and social awareness. Although the paper analyzes various international companies and industries (food, fashion, cosmetics, etc.), this research can create some value for other industries as well.