Oracle Survey Indicates Supply Chain Glitches Are Alarming to Consumers

Recent supply chain delays and disruptions have negatively impacted the lives of Americans, leaving many feeling frustrated, angry, and scared that the disruptions will never end, according to a new study by Oracle.

The study of more than 1,000 U.S. consumers found that worries about more delivery delays, product shortages, and disruptions are worsening across the nation due to the rise of the COVID-19 Delta variant, and that people are looking to brands to help settle their concerns.

Supply Chain Disruptions Are Impacting Americans in Negative Ways

Over the past year, supply chain disruptions have become top-of-mind for nearly all Americans and have had a widespread impact on day-to-day life.

• Almost half (45 percent) of people admit they never thought about how products were delivered prior to the COVID-19 pandemic, but now nearly everybody (91 percent) considers the supply chain when making a purchase.
• 87 percent of people have been negatively impacted by supply chain issues over the past year, with many Americans unable to purchase certain items due to shortages (60 percent), forced to cancel orders due to delays (51 percent), and even rationing essential items out of fear of running out (40 percent).
• 43 percent of people admitted they’ve blamed missed gifts for special occasions on supply chain issues and that they have hurt people they care about as a result (17 percent).
• Men (57 percent) are twice as likely as women (29%) to blame the lack of a gift on supply chain issues. Men (24 percent) are also twice as likely as women (12 percent) to cry over not being able to buy the items they need.
• Supply chain disruptions have left people feeling frustrated (61 percent), impatient (46 percent), anxious (45 percent), and angry (34 percent). A majority (92 percent) are concerned that supply chain shortages will prevent them from being able to buy what they need, and 66 percent are worried it will ruin their holidays.

People Are Scared That the Supply Chain Disruptions Will Never End

Americans are increasingly worried that supply chain disruptions will continue impacting their futures with many seeing no end in sight.

• 82 percent of people are concerned that ongoing supply chain disruptions will ruin their life plans, such as birthdays, holidays, trips, and purchasing necessary items like school supplies.
• 77 percent are more concerned now with the rise of the COVID-19 Delta variant.
• 92 percent of people believe there will be more supply chain disruptions in the future, and two-thirds (66 percent) are scared that these issues will never end.
• 89 percent of people believe supply chain disruptions will continue to negatively impact their futures, most fearful of out-of-stock items (62 percent), challenges in buying seasonal products (45 percent), and increased stress and anxiety while shopping (44 percent).
• 91 percent of people plan to change their buying behavior moving forward, including buying in bulk and stocking up on items (49 percent), purchasing gifts earlier to allow for delays (45 percent), and paying closer attention to global shortages of items they regularly use (40 percent).

If Brands Don’t Prepare for Disruptions, They’ll Risk Losing Valuable Customers

The supply chain has become a critical part of people’s purchasing decisions. Organizations that don’t prioritize their supply chains risk declines in customer loyalty and revenue.

• 81 percent of people are willing to pay a premium for smooth and timely delivery of their items.
• 84 percent say delays would cause them to cancel their order and 80 percent say delays or shortages would even cause them to stop buying from a brand entirely.
• 58 percent of people would stop buying from a brand after 1-3 delays or disruptions.
• Most people (91 percent) understand that supply chains are complex, but 94 percent want more support from brands to help ease their worries.
• People want brands to provide more regular updates about shipping status (63 percent), be more transparent on inventory (59 percent) and potential supply chain issues (54 percent), and offer refunds (56 percent) or discounts (52 percent) if items are delayed or cancelled.
• 76 percent of people would trust and be more willing to buy from (78 percent) a company if they knew it used advanced technologies like artificial intelligence to manage its supply chain.

“These insights paint a clear picture that the ongoing global supply chain issues are impacting many Americans,” said Jon Chorley, group vice president of SCM product strategy and chief sustainability officer, Oracle. “Ultimately, the supply chain is where brand promises are either met or broken. Organizations that are able to provide the supply chain efficiency and transparency that customers expect will be rewarded with greater customer loyalty and accelerated business growth.”

Terri Hiskey, VP of Product Marketing, Supply Chain & Manufacturing at Oracle, told SCMR in an interview that the survey was revealing in other significant ways:

“I think we can all relate to feeling the frustration around delivery delays or product shortages, but what truly surprised me was how significantly U.S. consumers were impacted, and more so, how aware they are of supply chain processes,” she said. “The frequency of these issues has pushed consumers to their breaking point, with 80% saying delays or shortages would even cause them to stop buying from a brand entirely. To better navigate future disruptions, organizations need to prioritize their supply chains now – or risk losing customers and ultimately revenue.”

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