The study of U.S. supply chain professionals conducted with Regina Corso Consulting found that 90% say procurement has taken on greater responsibilities to address both supply chain and sustainability challenges. With nearly half (49%) of supply chain professionals saying shortages and disruptions are keeping them up at night, this is a pivotal time to lean on the procurement function to alleviate these challenges.

鈥淪upply chain disruptions aren鈥檛 a new challenge, but they鈥檝e been dramatically compounded and lasting due to ongoing shortages and delays caused by the pandemic,鈥� said Etosha Thurman, Chief Marketing and Solutions Officer, Intelligent Spend and Business Network, SAP. 鈥淭o navigate these unpredictable circumstances, supply chain leaders must strategically leverage procurement to effectively manage supplier relationships, mitigate customer frustrations, control costs and ensure business resiliency.鈥�

Top Challenges Keeping Supply Chain Professionals Awake at Night

Supply shortages and disruptions are not the only issues that the surveyed supply chain professionals say they face today. Other areas include:

• Sustainability (28%)
• Reducing costs and/or saving money (27%)
• Consumer feedback (21%)
• Digital transformation (20%)
• Regulatory compliance (18%)

Despite only 28% of respondents saying sustainability keeps them up at night, 91% say their company has specific sustainability goals or objectives, and 95% say procurement plays a significant role in achieving those sustainability goals.

The Elevation of Procurement in Mitigating the Impacts of Ongoing Supply Chain Problems

Between the global pandemic, labor and supply shortages and increasing consumer demands for sustainability, the supply chain professionals surveyed agree that procurement has taken on a more strategic role to help mitigate key challenges:

• 50% say procurement is helping alleviate supply chain challenges by improving supply chain transparency.
• 48% say it is helping develop better relationships with suppliers.
• 45% say it is helping diversify suppliers for greater resiliency.
• 33% say it is helping adapt payment terms to improve trading partner liquidity.
• 21% say it is helping reskill talent to address higher-level business priorities.

The study shows that procurement is helping businesses achieve visibility, transparency and accountability with their suppliers, especially when it comes to potential disruptions, enabling them to pivot quickly to new suppliers and ensure continuity.

The Consumers鈥� Role in Easing Supply Chain Shortages

Supply chain professionals surveyed say consumers have a part to play as well in easing the challenge of supply chain disruptions:

• 54% say consumers should allow more time for fulfillment.
• 46% say consumers should buy more local goods and order items earlier.
• 33% say consumers should be willing to pay more to account for higher supply chain costs.
• 32% say consumers should have more empathy and understanding for the delays.

The research study was conducted between October 15 and 25, 2021, on a sample of 210 U.S.-based employees who work in the supply chain at companies with at least 500 employees.

鈥淚f postpandemic supply chains are to be resilient, they must be sustainable. It鈥檚 not enough to just track and extoll green virtues, sustainability must become part of the way that supply chains are run,鈥� said Simon Ellis, Program VP, IDC. 鈥淥n the other end, the growth of e-commerce and consumer expectations for 鈥榥ext day鈥� delivery often runs counter to sustainable fulfillment and carbon footprint. There will have to be a rebalancing or rationalization about the way that people consume: 鈥榙o I really need the product the next day?鈥欌��

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Those of us in the聽supply chain聽industry understand that disruptions have persisted since March 2020. This has created a mainstream perception of supply chains as increasingly volatile, expensive, and unreliable 鈥� but disruption has been more of an intermittent and confusing frustration for most in 2021, instead of the panic-buying and supply-hoarding catalyst it was in 2020.

Going into the holiday season, some industry insiders are fearful that these disruptions will hit hard again. Supply chain disruptions are forcing companies to think twice about the timing of their holiday sales, and many retailers are warning consumers to get their holiday shopping done early this year to avoid shortages and shipping delays. In fact, many retailers such as Amazon and Target announced their holiday deals much earlier than usual this year, having started in early October rather than late November. Leaving the majority of holiday shopping to Black Friday weekend could lead to many consumers being sorely disappointed with bare shelves, empty online shopping carts, and delayed deliveries.

With persistent challenges in procurement and the supply chain, 51风流surveyed 1,000 American adults to help better understand how they view the latest supply disruptions and their sentiment around the industry overall. Some interesting findings surfaced:

• Frustration is growing as holiday supply chain challenges loom.
  Almost half of consumers (49%) experienced longer ship times during the聽聽pandemic, and 42% expressed frustration with how companies are managing their supply chains. The majority of consumers (83%) also reported experiencing out-of-stock items during the pandemic. Patience is wearing thin, as nearly two-thirds (65%) think companies should have found solutions to supply chain challenges by now.
• Baby boomers have high expectations for gift availability and delivery while millennials and Generation Zers are more skeptical.
  Eighty-one percent of baby boomers expect holiday gifts to be available and in stock, compared to 75% of millennials and 60% from Gen Z. Furthermore, 78% of boomers expect gifts to arrive on time, while 63% of millennials and just over half of Gen Z respondents (54%) said the same. Overall, one-third of consumers are planning for the worst, expecting that gifts will聽苍辞迟听arrive in time for the holidays this year. Having the visibility in place to inform consumers of product availability and delivery timeline is crucial to avoiding disappointment this holiday season.
• Most consumers are forgiving of supply chain mishaps, but not right away.
  One in 10 consumers say that if a gift they purchase does not arrive on time for the holidays, they would never shop at that retailer again. Another 47% noted that they would not shop with that retail company again immediately, but that they may in the future. No matter how or why it happens, supply chain disruptions hurt brand loyalty among customers.
• Delivering gifts on time is not the only factor brands need to consider.
  Sustainability continues to play a bigger role in consumers鈥� buying decisions, even when it comes to holiday gifts. This is particularly true among younger consumers, as half of millennials said sustainability influences their gift purchasing decisions. Overall, 39% said they purchase from brands that tout sustainability, while 30% prioritize sustainable practices when making purchases, such as selecting slower shipping to combine packages and reduce waste. Brands can promote sustainability through their own procurement practices by ensuring the products and materials sourced are done so in a sustainable manner 鈥� from limiting carbon footprint to sourcing recycled/recyclable materials.

After last year鈥檚 chaotic holiday season that had more consumers buying online than ever before, proactive businesses and consumers are adapting their approach this season, especially with ongoing disruption anticipated this year.

For consumers, as of early October, almost a third (29%) had already changed at least one gift purchase based on supply chain shortages, and only 24% of total respondents expressed that they do not plan to shift their buying behaviors this holiday season. Almost half (45%) are buying earlier, and 44% are buying more online. Millennials are changing their plans the most, with 55% buying earlier than in previous years.

For businesses, agility and visibility are the name of the game. We have all experienced so much disruption from all angles recently, and there鈥檚 no going back to 鈥渘ormal鈥� as consumers 鈥� and businesses 鈥� continue to change buying behaviors.

Businesses need to broaden visibility not only across their own operations but across those of their trading partners as well, with the dual objectives of聽. To achieve this level of transparency, businesses are turning to聽聽to capture the widest possible view into the interconnected operations of their trading partners from buyers and suppliers to partners in logistics, finance, and contingent labor. Meanwhile, these digital networks 鈥� previously discrete according to function 鈥� are beginning to converge through cloud-based applications, unlocking exponential value in the process.

Consumers and businesses alike have been burned by supply chain issues and shortages during the pandemic, but with the right approach to this holiday season, we can still make it a merry one.

This originally appeared on the global 51风流News Center.

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