Recent supply chain delays 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 Having Negative Impacts
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%) of people admit they never thought about how products were delivered prior to the COVID-19 pandemic, but now nearly everybody (91%) considers the supply chain when making a purchase.
- 87% 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%), forced to cancel orders due to delays (51 percent), and even rationing essential items out of fear of running out (40%).
- 43% 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%) are twice as likely as women (29%) to blame the lack of a gift on supply chain issues. Men (24%) are also twice as likely as women (12%) to cry over not being able to buy the items they need.
- Supply chain disruptions have left people feeling frustrated (61%), impatient (46%), anxious (45%), and angry (34%). Nearly all (92%) are concerned that supply chain shortages will prevent them from being able to buy what they need, and 66% are worried it will ruin their holidays.
People are Afraid That Supply Chain Disruptions Will Never End
Americans are increasingly worried that supply chain disruptions will continue to negatively impact their futures with many seeing no end in sight.
- 82% 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% are more concerned now with the rise of the COVID-19 Delta variant.
- 92% of people believe there will be more supply chain disruptions in the future, and two-thirds (66%) are scared that these issues will never end.
- 89% of people believe supply chain disruptions will continue to negatively impact their futures. People are most fearful of out-of-stock items (62%), challenges in buying seasonal products (45%), and increased stress and anxiety while shopping (44%).
- 91% of people plan to change their buying behavior moving forward, including buying in bulk and stocking up on items (49%), purchasing gifts earlier to allow for delays (45%), and paying closer attention to global shortages of items they regularly use (40%).
If Companies Don't Prepare for Disruptions, They Could Risk Losing 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% of people are willing to pay a premium for smooth and timely delivery of their items.
- 84% say delays would cause them to cancel their order and 80% say delays or shortages would even cause them to stop buying from a brand entirely.
- 58% of people would stop buying from a brand after 1-3 delays or disruptions.
- Most people (91%) understand that supply chains are complex, but 94% want more support from brands to help ease their worries.
- People want brands to provide more regular updates about shipping status (63%), be more transparent on inventory (59%) and potential supply chain issues (54%), and offer refunds (56%) or discounts (52%) if items are delayed or canceled.
- 76% of people would trust and be more willing to buy from (78%) 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, 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.”
