What the Supply Chain Crisis Means for Your Customer Experience

The ongoing global supply chain woes have created massive headaches for both customers and the brands that serve them. One of the many products of lingering COVID uncertainty, the supply chain crisis has resulted in steeper prices, logistics chaos, and a markedly lower supply of everything from video game consoles to garden furniture. Today’s discussion covers three factors brands should be aware of as they consider supply chain issues within the context of customer experience (CX).

3 Supply Chain Crisis Factors to Consider for the Customer Experience

  1. Manufacturing
  2. Logistics
  3. Commodity Prices

Factor #1: Manufacturing

The manufacturing gap is not the only cause of the supply chain’s current state, but it’s certainly one of the most important. As I’m sure you remember during the early days of the pandemic, COVID lockdowns weren’t restricted to offices and restaurants—many manufacturing facilities were also closed due to a combination of quarantine guidelines and falling demand. Now, as the world reawakens after what is hopefully the worst of the pandemic, the manufacturing sector is struggling to match the speed of reemergent customer demand. As a result, many brands find themselves with insufficient stock to actually meet that demand, which poses an obvious threat to customer experience.

Factor #2: Logistics

We’re all hopeful that manufacturing will eventually catch back up to demand, but production capacity is, unfortunately, just one reason the supply chain is currently creaking. The second factor to consider here is logistics, and how both shipping queues and an enduring truck driver shortage are preventing what goods can be manufactured from actually reaching store shelves. Many ships find themselves idling in harbors the world over, which of course increases shipping prices, while the aforementioned driver shortage is an outgrowth of the mass-quitting phenomenon the media have dubbed The Great Recession. Both problems further complicate acquiring stock and providing the experiences that your customers expect.

Factor #3: Commodity Prices

This is a more subtle element than the previous two, but no less important to understanding the supply chain. As it turns out, the higher prices that coffee, sugar, wheat, and other staples command right now aren’t strictly a byproduct of shipping or manufacturing problems. Rather, the reason they’re so high is because, to put it simply, customers bought and cooked with them all while stuck at home! This phenomenon feeds directly into the higher prices you’ve no doubt noticed while grocery shopping, and, of course, brands’ ability to purchase and make use of those same staples for their customers.

How Your Brand Can Respond

The problems I’ve touched on represent significant obstacles for any CX programme. Almost every industry is somehow being affected by the supply chain crisis, and though we all hope that things will improve soon, it’s imperative for your brand to take meaningful action in the meantime. Taking action will help you not just make the best of this problem, but will also help protect your customer experience and to maintain the connective relationships you’ve worked so hard to create. This is what the supply chain crisis means for your brand: action is more important now than ever before.

Click here to read my full-length point of view document on how best to take action against supply chain problems. I go into each of the issues I touched on here (and The Great Resignation) in more detail, followed by solutions that will allow you to continue creating powerful experiences and achieving meaningful change even in these uncertain times.

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