Consumers Favor Firms With AI Driven Supply Chains
October 1, 2021
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.
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
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.
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).
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
- Men (57
percent) are twice as likely as women (29 percent) 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.
chain disruptions have left people feeling frustrated
(61 percent), impatient (46 percent), anxious (45
percent), and angry (34 percent). Nearly all (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.
Scared That the Supply Chain Disruptions Will Never End
increasingly worried that supply chain disruptions will
continue to negatively impact their futures with many seeing
no end in sight.
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.
percent are more concerned now with the rise of the
COVID-19 Delta variant.
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.
percent of people believe supply chain disruptions will
continue to negatively impact their futures. People are
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 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
If Brands Don’t
Prepare for Disruptions, They’ll Risk Losing Valuable
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.
percent of people are willing to pay a premium for
smooth and timely delivery of their items.
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.
percent of people would stop buying from a brand after
1-3 delays or disruptions.
people (91 percent) understand that supply chains are
complex, but 94 percent want more support from brands to
help ease their worries.
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
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.
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