o9 Solutions, a leading enterprise AI software platform provider for transforming planning and decision-making, has released a new survey that reveals how consumers perceive the impact of supply chain disruptions, specifically regarding product availability. More than half of consumers (52%) surveyed indicated that they personally experienced supply chain disruptions in the last 12 months, and 49% reported issues with product availability for goods they typically purchase.
Based on a Q3 2023 survey of 1,026 U.S. respondents in collaboration with TEAM LEWIS, the U.S. Shopper Spotlight: o9 Consumer Survey 2023* finds that supply chain constraints impacting product availability have played a role in consumers’ shifting purchasing patterns. More than one-third of consumers have stopped purchasing items due to cost increases (38%), started to do more comparison shopping (35%), and adjusted their shopping habits by prioritizing what products they need to purchase each month (33%).
Additionally, the survey found that:
- Consumers have varying degrees of confidence in supply chain performance, as 38% of respondents feel that supply chains are functioning well, 39% feel a lack of confidence in global supply chain performance, and 24% feel uncertain about the functionality of global supply chains.
- Consumers also believe that multiple external factors are disrupting supply chains and product availability. More than half of consumers (58%) believe that inflation is a key driver of supply chain disruption. Consumers also feel that labor shortages (49%), transportation shortages (42%), and geo-political factors (40%) also factor into supply chain disruptions.
- Consumers have varied opinions about how long supply chain volatility will last. Twenty-four percent of respondents said they are confident that supply chain disruptions will be resolved soon, 51% believe supply chain disruptions will take more time to fix, 13% feel that supply chain disruptions are here for the long term, and 12% are uncertain about the long-term impact of supply chain disruptions.
Over the past few years, navigating market volatility, uncertainty, complexity, and ambiguity (VUCA) has been an unprecedented challenge for organizations with global supply chains. Technology platforms that are powered by AI and advanced analytic capabilities, like the o9 Digital Brain, can help businesses take an “outside-in” approach to integrated business planning in which external data and real-time market insights play a key role in supply chain planning processes and allow teams to adjust their supply chain to better align with consumer demand. The ability to respond to sudden changes in market conditions ensures that supply chains can adapt to VUCA scenarios without significant disruption.
“Retail and CPG sectors are certainly the most visible to consumers since we can immediately detect when supply chain issues arise and result in out-of-stock inventory,” said Igor Rikalo, President and COO at o9 Solutions. “Companies need to excel in predicting demand well ahead of when products will be available in stores and then synchronize production and logistics to ensure the right product is in the right quantity at the right store. That requires complex planning processes that are supported by advanced analytic technologies, such as the o9 integrated business planning platform. The use of these technologies doesn’t just alleviate supply chain risk; it fundamentally transforms how businesses operate, making them more resilient, efficient, and responsive to market changes and shifting consumer buying behaviors.”
