Skip to content
Search AI Powered

Latest Stories

Consumers identify supply chain pain points

A year into the pandemic, many consumers lose confidence in supply chains, lament product shortages, survey shows.

Consumers identify supply chain pain points

A year after struggling to find a place to replenish their household stock of toilet paper, consumers are becoming more familiar with the workings of the supply chain and are increasingly concerned about product shortages, according to a survey from enterprise software firm SAP, released Monday.

SAP polled 1,000 U.S. consumers in February for their perspective on the greatest supply chain “pain points” one year into the Covid-19 pandemic. More than a third (37%) said they have lost confidence in supply chains and nearly half (48%) said they have changed their buying habits to include bulk shopping or restocking household items earlier than they did before the pandemic-induced lockdowns took hold last spring.


“One year ago, 63% of consumers struggled to find a place to buy toilet paper,” the researchers said. “Shelves are stocked now, but there are lasting effects on the broader supply chain. [Thirty-five percent of consumers] say their favorite grocers and retailers are still dealing with out-of-stock issues.”

The survey also found that 70% of consumers switched brands due to supply chain problems, and 29% of them never switched back. In addition, consumers say they are concerned about a lack of supply in 2021, including food (48%), hygienic or personal care products, such as toilet paper (44%), and personal protective equipment (PPE), such as face masks (33%). They are also worried about pending product shortages: 84% of survey respondents said they’re concerned about the availability of electronic components, which are critical to producing everything from smartphones to cars and trucks.

The changing behaviors and shifting attitudes are causing retailers, e-commerce companies, and others along the supply chain to rethink their supply chain management and sourcing strategies. Part of the change includes finding alternate sources of supply to meet demand more quickly or keeping more stock of certain items on hand. Agility and end-to-end visibility remain key components of any good strategy as well, according to SAP.

“More than any singular event in modern history, the coronavirus pandemic has brought the global supply chains’ systemic weaknesses into sharp focus. To restore these links to full strength, businesses need to broaden visibility not only across their own operations but those of their trading partners, with the dual objectives of reducing risk and instilling resilience,” according to Sean Thompson, executive vice president, network and ecosystem, procurement solutions, for SAP. “A key area of focus is the symbiotic relationship between buyer and supplier. By proactively addressing the supplier experience, businesses can benefit from even more than increased resiliency–they also can leverage supplier expertise to identify opportunities to enhance efficiency. Additionally, when buyers and suppliers align on shared priorities, this enables collaboration and knowledge-sharing to improve product and service innovations together.”

Developing digital strategies is also important.

“By embedding direct materials procurement into product planning and manufacturing, and by sharing accurate, up-to-the-moment information enabled by digital networks, organizations can more strategically plan demand, run material requirements, evaluate time horizons, and determine what components are needed where and when,” Thompson also said. “Then, by strategically sourcing materials across a global, diverse supply base connected to a digital network, companies can procure the goods they need when they need it.”

The Latest

More Stories

DHL graphic on online shopping marketplaces

DHL report shows seven factors about American online shoppers

Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.

First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).

Keep ReadingShow less

Featured

schneider app screenshot for owner operators

Schneider seeks more business with owner-operators

Transportation and logistics service provider Schneider National Inc. is reaching out to owner-operators, encouraging them to do more business with the Wisconsin company using an updated digital platform.

Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.

Keep ReadingShow less
trucks used by jillamy 3PL

Texas 3PL Mode Global acquires Jillamy’s freight brokerage arm

The Texas third-party logistics firm (3PL) Mode Global has acquired the freight brokerage business of supply chain service provider Jillamy, saying on Monday that the deal advances its strategy of expanding its national footprint.

Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.

Keep ReadingShow less
Clorox partnership helps suppliers meet carbon reduction targets

Clorox partnership helps suppliers meet carbon reduction targets

Consumer packaged goods (CPG) provider The Clorox Co. has partnered with Manufacture 2030 (M2030) to help Clorox's suppliers meet their carbon reduction targets and advance the company's long-term goal of reaching net-zero emissions by 2050.

In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.

Keep ReadingShow less
U.S. map with drought risk

Everstream Analytics quantifies how climate risk affects supply chains

Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.

Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.

Keep ReadingShow less