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18/05/2022

How rising consumer expectations impact the supply chain

Rising rates of consumer expectations in eCommerce has shifted how retailers approach their supply chain operations.

Rising customer expectations

 

Warehouses have had to redefine performance to adapt to the rise of eCommerce. Customer experience is quickly becoming a key differentiator – resulting in increased customer loyalty and higher revenue. This means it is more important than ever for businesses to optimize their supply chain operations.

Consumer expectations are higher than ever in terms of cost, choice, and speed of delivery. Meeting them is critical for businesses, but competitors make managing eCommerce demand increasingly difficult by promising quick delivery times at little to no cost.

Amazon Prime, two-day delivery, click and collect, same-day grocery delivery and other offerings have shifted consumers perspective of shopping. In turn, today’s supply chains play a central role in creating a great customer experience and driving customer loyalty.

 

What does this mean for businesses?

 

Now that we know why customer expectations are rising, the looming question remains: how should a company respond? Its important to understand that rising expectations will continue to rise, similar to Newton’s first law – an object in motion stays in motion. In turn, companies need to dynamically optimize their supply chain operations to retain their customers. If you do what you’ve always done, your business will be left in the dust. Remaining static – in terms of strategy – will lead to declining rates of customer satisfaction.

 

Insights from Experience is everything: end user study

 

Optimizing your supply chain from end to end is crucial for meeting rising customer expectations and demands. Körber asked a group of consumers across the globe about their spending habits, attitudes, and expectations in Winter 2021. Respondents considered order accuracy, delivery options, visibility and on-time shipments as essential information to provide to customers ordering online.

To this day, the pandemic continues to be a driving force behind supply chain disruptions. The COVID-19 outbreak significantly influenced consumer buying habits, with 73 percent of respondents saying their buying habits changed due to the pandemic.1 Before the pandemic, 58 percent of respondents shopped in-store verses only 28 percent at the time of the survey. Additionally, only 19 percent of respondents bought online to ship home pre-pandemic, rising to 44 percent when surveyed.

Overall, the report discovered high consumer expectations throughout the supply chain. With eCommerce rising at unprecedented rates year after year, businesses need to be proactive. Körber solutions can help companies optimize warehouses to manage the rising consumer demand.

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