Business & Investment

Consumers identify supply chain issues

A year after struggling to find a place to replenish their household inventory of toilet paper, consumers are becoming accustomed to how the supply chain works and are increasingly concerned about product shortages, according to a survey. , Enterprise software company SAP, Released on Monday.

In February, SAP surveyed 1,000 US consumers about their views on the biggest supply chain “problems” a year after the Covid-19 pandemic. More than one-third (37%) said they lost confidence in their supply chains, and nearly half (48%) said they would include bulk shopping and household supplies replenishment sooner than before the pandemic blockade took hold. Said that he changed his purchasing habits. last spring.

“A year ago, 63% of consumers had a hard time finding a place to buy toilet paper,” the researchers said. “Currently, shelves are in stock, but they have a lasting impact on the broader supply chain. [Thirty-five percent of consumers] Their favorite grocery stores and retailers say they are still working on the out-of-stock issue. ”

The survey also found that 70% of consumers switched brands due to supply chain issues and 29% did not. In addition, consumers are concerned about the shortage of supplies in 2021, such as food (48%), hygiene or personal care products such as toilet paper (44%), and personal protective equipment (PPE) such as face masks. Stated. (33%). We are also worried about the pending product shortage. Eighty-four percent of survey respondents say they are concerned about the availability of electronic components that are essential for producing everything from smartphones to cars and trucks.

Due to behavioral and attitude changes, retailers, e-commerce companies, and others along the supply chain are rethinking their supply chain management and sourcing strategies. Some of the changes include finding alternative sources to respond quickly to demand and keeping more inventory of certain items. According to SAP, agility and end-to-end visibility continue to be key elements of good strategy.

“More than any peculiar event in modern history, the coronavirus pandemic focuses on systematic weaknesses in the global supply chain,” said Sean Thompson, executive vice president of networks and ecosystems. To return to full power, we need to extend visibility not only to our own business, but to the entire business of our business partners, with the dual purpose of reducing risk and instilling resilience. Procurement solutions. “The key focus is the coexistence of buyers and suppliers. By actively engaging in the supplier experience, companies have the opportunity to not only improve resilience, but also leverage their expertise to increase efficiency. In addition, if buyers and suppliers meet a common priority, this enables collaboration and knowledge sharing, and together improve product and service innovation. ”

The development of digital strategies is also important.

“By incorporating direct material procurement into product planning and manufacturing and sharing accurate and up-to-date information enabled by digital networks, organizations can more strategically plan demand, implement material requirements, and time periods. You can evaluate what the component is, when and where you need it, “Thompson said. “Then, by strategically sourcing materials across a global and diverse supply base connected to a digital network, companies can get the products they need, when they need them.”

Consumers identify supply chain issues

https://www.dcvelocity.com/articles/50130-consumers-identify-supply-chain-pain-points Consumers identify supply chain issues

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