Enterprise, Insight, News

81% of UAE Consumers Worried Supply Chain Issues Are Here to Stay

Dubai, UAE, December 20, 2021: Recent supply chain delays and disruptions have negatively impacted the lives of UAE consumers, leaving them feeling frustrated, angry, and scared that the supply chain nightmare may never end, according to a new study by Oracle. The study surveyed 1,000 UAE consumers and found that worries are worsening across the nation and people are looking to brands to help settle their concerns.

Over the past year, supply chain disruptions have become top-of-mind for many consumers in the UAE and have had a widespread impact on day-to-day life.

  • Almost half (42 percent) of people admit they never thought about how products were delivered prior to the COVID-19 pandemic, but now many (61 percent) consider the supply chain when making a purchase.
  • 84 percent of people have been negatively impacted by supply chain issues over the past year, with many UAE consumers unable to purchase certain items due to shortages (36 percent), forced to cancel orders due to delays (37 percent), and even rationing essential items out of fear of running out (28 percent).
  • 52 percent of people admitted they’ve blamed missed gifts for special occasions on supply chain issues and that they have hurt people they care about as a result (18 percent).
  • Supply chain disruptions have left people feeling frustrated (34 percent), impatient (30 percent), anxious (41 percent), and angry (25 percent) and 40 percent are worried that supply chain disruptions will ruin their holidays.

People Are Scared That the Supply Chain Disruptions Will Never End

UAE consumers are increasingly worried that supply chain disruptions will continue to negatively impact their futures with many seeing no end in sight.

  • 48 percent of people are concerned that ongoing supply chain disruptions will ruin their life plans, such as birthdays, holidays, trips, and purchasing necessary items like school supplies.
  • 89 percent of people believe there will be more supply chain disruptions in the future, and (54 percent) are scared that these issues will never end.
  • 89 percent of people believe supply chain disruptions will continue to negatively impact their futures. People are most fearful of delivery delays (38 percent), challenges in buying seasonal products (34 percent), and out of stock items (34 percent).
  • 91 percent of people plan to change their buying behavior moving forward, including pre-ordering items whenever possible (36 percent), shopping more in-person than online (32 percent), and purchasing gifts earlier to allow for delays (29 percent).

If Brands Don’t Prepare for Disruptions, They’ll Risk Losing Valuable Customers

The supply chain has become a critical part of people’s purchasing decisions. Organisations that don’t prioritise their supply chains risk declines in customer loyalty and revenue.

  • 81 percent of people are willing to pay a premium for smooth and timely delivery of their items.
  • 68 percent say delays would cause them to cancel their order and 85 percent say delays or shortages would even cause them to stop buying from a brand entirely.
  • Most people (83 percent) understand that supply chains are complex, but 91 percent want more support from brands to help ease their worries.
  • People want brands to provide more regular updates about shipping status (42 percent), be more transparent on inventory (39 percent) and potential supply chain issues (45 percent), and offer refunds (42 percent) or discounts (39 percent) if items are delayed or cancelled.
  • 85 percent of consumers would trust a company more and 88 percent would be more willing to buy from that company if they knew it used advanced technologies like artificial intelligence to manage its supply chain.

“These insights paint a clear picture that the ongoing global supply chain issues are impacting many consumers”, said Jon Chorley, Group Vice President of SCM Product Strategy and Chief Sustainability Officer, Oracle. “Ultimately, the supply chain is where brand promises are either met or broken. Organisations that are able to provide the supply chain efficiency and transparency that customers expect will be rewarded with greater customer loyalty and accelerated business growth”.

Learn more about the survey here.

To learn more about Oracle Cloud Supply Chain & Manufacturing (SCM), visit https://www.oracle.com/scm/

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