Supply chain crisis: saving Christmas for your customers

All is not lost when it comes to Kiwi businesses trying to make up for the supply chain issues. Paul Soong highlights some ways retail businesses can look at alleviating the stress and pressure for customers.

Recently we’ve seen dire warnings about the need to start stocking up for Christmas today, or risk not getting the Playstation 5, Lego set or even the Christmas turkey in time.

Serious global supply chains are causing massive delays on shipping new consumer goods into New Zealand, and it’s about to get worse as Christmas shopping orders pile up. Last Christmas, Kiwis spent more online than they have in history. Research by NZ Post found online shopping went up 27 percent last Christmas. With the ongoing restrictions in various parts of the country, we can expect more of the same this year.

Global supply chains in crisis

A confluence of ongoing issues with the global supply chains have pushed up the cost for goods to be shipped where they’re needed. Added to consumers’ increased spending after a year of border closures and lockdowns, the global supply chain industry is at crisis.

There is a global shortage of ships and containers required to serve the current environment. Congestion at ports around the world, led by COVID-19 closures, and manufacturing shutdowns have forced shipping lines to change schedules, causing routing and delivery upheavals.

Furthermore, the congestion is compounded by New Zealand’s relative size and location. The shrinking availability of containers globally means less ships are coming here, while the volume of goods to be shipped has not changed at all. The recent move around empty container fees means importers are responsible for shouldering extra costs to get empty containers out of the country to the right depot.

Nearly every point in global supply chains has been affected and retailers from every sector are faced with the real risk of empty shelves ahead of Christmas.

How can Kiwi businesses save Christmas?

However, all is not lost when it comes to Kiwi businesses trying to make up for the supply chain issues affecting all corners of the earth. Customers seeking brands they can trust will turn to businesses who are providing solutions in these challenging times. Some ways businesses can look at alleviating the stress and pressure for customers heading into business are:

• Create a seamless shopping experience – Getting customers to start shopping early is a given but businesses need to make sure that the experience is as seamless and frictionless as possible. According to BluJay research, 67 percent of supply chain companies believe that customer experience (CX) will become the number one brand differentiator. Retailers should aim to provide personalised and seamless experiences across multiple channels and the entire journey, including different delivery options. While the Christmas period brings about challenges in on-time deliveries, businesses need to prepare now to ensure maximum customer satisfaction and convenience.
• Invest in supply chain visibility – As consumers purchase goods within the current environment, establishing end-to-end control of operations will help determine success for businesses this season. The already strained supply chain begs for ‘control tower’ visibility throughout the entire chain, from point of order, to packaging, shipping, and delivery. One vital component that pieces together the visibility puzzle is the quality of data in the supply chain network. Three defining features of good data are accuracy, completeness, and timeliness. Without these components, businesses cannot fully reap the benefits that an end-to-end experience offers.
• Give customers the power of control – Not only can mobile solutions help to streamline daily operational processes, it can provide an interactive mobile interface for customers, and the ability for the business to scale and adapt to their needs. Giving customers control and visibility of their shipments in the last mile, especially in these uncertain times, can help qualm pre-Christmas jitters, boost loyalty and customer satisfaction. Customers are in control of where and when deliveries are made, and two-way communication between the driver and customer allows the delivery location to be changed up until the final stages of delivery.

As we begin to recover, businesses must return to normal with the understanding that there is no way to predict global events or issues arising during peak times that could disrupt supply chain and delivery. Businesses must invest in their supply chain management and delivery strategy while building seamless customer experience in order to continue thriving.

Paul Soong (pictured) is Regional Director, ANZ, for BluJay Solutions, now part of E2open.