A study of 1,000 consumers conducted by Oracle shows that recent ongoing supply chain woes have negatively impacted their view of the stability of the supply chain in 2021. The study found that 92% of consumers think that there are more supply chain problems to come, while 66% of respondents worry the disruptions will never end.
The report comes at a time when companies and consumers are preparing for the high-spend, high-demand holidays. The study also showed that 91% of consumers plan to change their buying behavior, including stocking up in case of shortages and planning ahead for gifts and consumer items.
Other key metrics in the report include:
- 81% of consumers say they will pay more for on-time delivery
- 84% of consumers say they will cancel an order due to delays
- 58% of consumers say disruptions will cause them to stop using a brand after 1-3 delays or disruptions
The message here is clear: brands must react to the supply chain disruptions and communicate with customers to salvage brand relationships.
Also Read: Most SMBs Facing Supply Chain Challenges, Survey Says
How can brands react to new buying behavior and worries?
The survey showed that 78% of consumers would be willing to trust a company that implemented AI and advanced technologies in their supply chain management software. These tools help companies react more quickly to changing supply environments. Procurement, logistics, manufacturing, and shipping tools must all work together with the customer-facing marketing, sales, and service software. Software that lets companies react, communicate changing states, and provide options for customers in case of delays will become increasingly important to continued brand success.
Consumer behavior has been in a state of flux for decades — reacting to new technologies and new marketing channels. Companies that react similarly by providing consumers with flexibility and reliability will fare much better. To protect themselves and their investments, companies must implement supply chain management or enterprise resource planning software that organizes, tracks, and — most importantly — reacts to the changing conditions.
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The new model is the old model
Oracle’s findings suggest that the same business model of trust and reliability remains one that resonates with consumers. But to employ this model at the scale that many brands expect can take a personal toll on the employees, which ultimately hurts consumers and brands. Reacting to changing conditions, communicating quickly with customers, and providing options for customers who need them is a complex task.
Automation, AI, and ML-enabled software can ease this burden. Supply chain software with AI can detect and react to delays quickly. When this software is connected to shipping tools, automation can update consumers of changing dates. Integrations with customer support software and ecommerce platforms gives the customer a choice in how to move forward, should their shipment be delayed.
Without next-level technologies like AI, ML, and automation within modern supply chain platforms, companies run the risk of burning out their employees with endless complex decisions and damaging their brand.
