Supply chain issues continue to dominate the news, as a series of interconnected issues are impacting the flow of goods from the point of manufacture to their intended destinations. Between worker labor shortages, raw material and parts issues, and bottlenecks across multimodal transportation networks, customers are seeing delays in shipments that can reach several months. These disruptions may cause some customers to switch brands or providers, even if the company is not directly responsible for the supply chain issues.
According to a survey published by Oracle of 1,000 US adults between September 9 and 10, 2021:
- Eighty-seven percent of respondents have been negatively impacted by supply chain issues over the past year, with many unable to purchase certain items due to shortages (60%), forced to cancel orders due to delays (51%), and rationing essential items out of fear of running out (40%).
- 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.
- Ninety-one percent 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%).
Nearly all consumers (91%) understand that supply chains are complex, but 94% want a greater amount of information on delays or other supply chain issues, including:
- More regular updates about shipping status (63%)
- More transparency on inventory (59%) and potential supply chain issues (54%)
- Refunds (56%) or discounts (52%) if items are delayed or canceled
The challenge faced by organizations is how to manage the inevitable customer frustrations that come with these types of supply chain delays, particularly when there is little to no timetable or estimate on when the pressure will subside. Customers are seeking both traceability and accountability, and failure to provide these two aspects can drastically impact customer satisfaction, even if supply chain issues are out of the organization’s control.
This is why it is important to take steps to mitigate the impact of supply chain problems, which can help maintain positive relationships with customers.
Provide Visibility and Transparency
A key strategy for managing the customer relationship is providing as much visibility and transparency as possible, so customers are informed about where their goods are in the pipeline and when they can be expected in real time. By implementing and integrating warehousing and logistics tracking software, and then providing customers access to this data, customers can be kept abreast of shipments and can take steps to mitigate any delays on their end. This will not address the root causes of delays, but will demonstrate that the company is committed to providing as much information as possible to the customer.
Consider Alternative Suppliers and Carriers
Software company Anyline conducted a survey of 500 adults in the US in September 2020 and found that 4 in 10 (43%) respondents had lost a package in shipping in the last year, while more than half (53%) reported receiving damaged packages during the same time. This is why business should evaluate the suppliers and carriers they use to ensure that customers are not being disappointed by last-mile delivery snafus. Finding alternative suppliers may mean taking on additional cost, but the value of delivering frictionless experiences will help deliver a better overall CX.
Offer Incentives or Discounts to Offset the Impact of Delays
When used judiciously, providing customers with financial incentives or discounts can offset the negative impact of out-of-stock products, shipping delays, or other supply chain failures. Even a nominal discount off a future order or reduction in the cost for shipping can demonstrate that the company is aware of the fulfillment issues and demonstrates empathy with the customer’s situation. Ultimately, direct communication with the customer can go a long way to maintaining a good customer relationship. Customers understand the complexities of the supply chain, and simply want to be assured that the company is doing all it can to monitor and expedite shipments, and keep customers apprised of any issues or problems. A simple email outreach to customers explaining the current supply chain disruptions, an estimate of expected delays, and a number or contact point for customers to reach the company can often make the difference between retaining and losing a customer.
Author Information
Keith Kirkpatrick is VP & Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
