{"id":5641,"date":"2023-03-24T21:43:39","date_gmt":"2023-03-24T19:43:39","guid":{"rendered":"https:\/\/trends.tuio.ro\/trends\/clash-of-delivery-disruption\/"},"modified":"2023-03-24T21:43:39","modified_gmt":"2023-03-24T19:43:39","slug":"clash-of-delivery-disruption","status":"publish","type":"trends-cpt","link":"https:\/\/trends.tuio.ro\/edition\/2024\/trends\/clash-of-delivery-disruption\/","title":{"rendered":"Clash of Delivery &#038; Disruption"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>Clash of Delivery &#038; Disruption. In 2023, brands face supply chain disruptions due to political, economic, and environmental factors, including sanctions, trade wars, climate change, and COVID-related shortages. Inflation is exacerbating the problem, with labor strikes affecting key delivery workers. Managing customer expectations in the face of these challenges will be crucial for marketing success.<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"template":"","trend-keywords":[5745,5636,5632,5630,5657,5786,5623,5659,5716,5814],"trend-themes":[],"trend-categories":[5731,5743,5625],"class_list":["post-5641","trends-cpt","type-trends-cpt","status-publish","hentry","trend-keywords-advertising","trend-keywords-climate-change","trend-keywords-consumer-attitudes","trend-keywords-disruption","trend-keywords-e-commerce","trend-keywords-inflation","trend-keywords-influencers","trend-keywords-retail","trend-keywords-transportation","trend-keywords-uncertainty","trend-categories-brands-advertising-trends","trend-categories-business-e-commerce","trend-categories-trends-global-challenges"],"acf":{"report":"WARC - The Marketer\u2019s Toolkit 2036","long_trend_summary":"Clash of Delivery & Disruption. Severe political, economic and environmental drivers are affecting brands\u2019 access to a range of raw materials, foodstuffs, gas and oil, amongst other critical items. Minimizing and effectively managing disruptions in supply chains will offer brands a significant advantage in 2023. Interruptions to the supply of energy and commodities from Ukraine coupled with sanctions on Russia are the primary cause of today\u2019s supply chain disruptions. But there are several other factors that are contributing to this perfect storm. One such disruption is climate change: droughts, rising temperatures and devastating hurricanes are affecting agricultural productivity. Low water levels in rivers used for transport, and water shortages for manufacturing plants, are also affecting industry. And in many cases, these also constrain rebuilding after a natural disaster. Sanctions and trade wars are creating problems as well. Geopolitical tensions and sanctions are driving alternate sourcing strategies as an erupting economic cold war drives shortages of crucial raw materials. This is costing brands like Ford, who spent $1 billion in Q3 to adapt their supply chain. COVID hangover is a thing. As trading has ramped up following the end of lockdowns, there is a shortage of critical staff such as port workers and truck drivers. Some countries, notably China, have continued to roll out lockdowns, which also has a major impact. And the most recent problem to arrive, Inflation. The war and supply shortages are contributing to rampant inflation around the world, which is resulting in increased wage demands from labor. Consequently, several key workers in the delivery chain are striking in many parts of the world. Managing customer expectations while minimizing supply disruptions will become a key criterion for marketing success in the coming year. Supply squeeze has big impact on small players. Marketers recognise the looming threat, but levels of concern vary. Amongst respondents to the 2023 Toolkit survey, more than 60% anticipate non-trivial supply chain disruptions, but just 26% expect they will be significant or severe. This rises to one in three amongst European respondents. That is understandable \u2013 supply chain challenges will vary by region and sector. Automotive, food and energy sectors are expected to be worst hit, while commodities, consumer goods and chemicals should be least affected. Brands with scale, resources and negotiating muscle may grab scarce items while smaller players lose out, in a new variation on double jeopardy. 28% of marketers in our survey thought that small and medium businesses would be worst affected by supply chain challenges. And 52% of marketers surveyed felt challenger brands would be the hardest hit by supply chain challenges, as they struggle to become profitable. Typically smaller than established competitors, these brands also face what strategist JP Castlin calls their \u201cMaguire moment\u201d \u2013 mounting pressure to deliver profits, as they mature from the start-up stage. Those dependent on low-cost countries like China could be particularly vulnerable. Businesses of all sorts are trying to identify ways to minimise disruption. Key measures include moving resources closer to home, within the same country\/region. Enabling visibility into lower level suppliers. Many brands that thought they had diversified their sources are finding all their vendors are dependent on the same supplier for their raw materials. Creating additional capacity outside China, while still maintaining a presence there. The goal is to have sourcing options that are independent of China. Another strategy is having a drop just-in-time delivery and maintain larger inventories. But this strategy comes with overstocking risks, as seen by Walmart, Target, Nike etc. Consistent delivery is critical for both marketers and consumers. Supply chain performance has been improving, but an IPSOS survey found 28% of US consumers still cite a lack of products at stores, restaurants, hotels, travel services etc. and 27% cited longer delivery times for online shopping. Similarly, marketers recognise the value of consistent inventory, with 59% agreeing that \u201creliable inventory and regular delivery will become a key brand asset in 2023.\u201d This rises to 63% amongst NA and EU respondents. While major decisions on supplier locations are not likely to reside within the marketing realm, marketers can help brands navigate this uncertain time. There are powerful measures that sit within a marketer\u2019s remit that can have an important impact on demand for their products. Marketers can help smooth supply issues. Proactively explain inventory issues: During COVID, a Convey US shopper survey found that most understood brands\u2019 supply chain challenges and were willing to give them latitude. Reaching out to regular customers, and letting them know what items are missing (and why) is better than trying to hide inventory gaps. Reward programs can also be tweaked to help mitigate customer frustration, as they will look for brands to make up for missing items and delivery delays. Communicate and engage: Actively create systems that suggest similar items to customers unable to find preferred products. Similarly, shift media activity (e.g. search and social) from low inventory items to those that are available. Where other options don\u2019t work, keep in touch with the customers, using digital and social channels to engage with them until the item is available and make sure they are the first to know when it is via alarms\/ notifications. Dig into the data: Marketers have access to data as well as expertise in parsing it. They can map and project demand, as well as identify early surges for specific products, adding crucial insight for procurement teams. Design for omnichannel: The shift to omnichannel strategy will also help introduce more flexibility, as brands will be able to source across channels to satisfy demand. Brands have found that integrating on-and- offline inventory can help drive sales. Promote overstocked items: Marketing initiatives can also be focused on sell-through of overstocked items, helping mitigate the risk of keeping larger inventories. They can also encourage businesses to manage expenses more efficiently, i.e. by producing more in the summer when energy prices are lower and stocking up for winter, when they are higher. Joint scenario planning: Cross-functional teams from sourcing\/procurement and marketing can strategize together, and put plans in place for unpredictable events and global crises. Marius Bartsch, Head of Customer Engagement, Digitas UK argues, \u201cThe supply chain officer and the CMO should have each other on speed dial.\u201d Meanwhile McKinsey research found brands that used scenario planning in 2021 were twice as likely to have avoided supply chain challenges in 2022. Spread-out promotions: Rather than trying to create large spikes in sales during Black Friday, Christmas etc. stretch out that marketing activity over a longer period, easing buyer surges and taking pressure off supply lines. Don\u2019t forget the last mile: Brands tend to track products till they reach the last mile carrier, but it\u2019s more important than ever that experience is also high quality. Brands need visibility and predictability in last mile delivery to improve customer experience, and drive more communication and engagement with the brand. Adding a product delivery and sourcing perspective to the marketing function simply by working more closely with supply chain teams can help improve both inventory management and the customer experience, despite the significant challenges faced by the industry in the coming year. Marketers can help manage supply chain disruptions. Proactively addressing the challenges created by supply disruptions and driving effective customer communication will help blunt the impact of inventory limitations and delivery delays. Engaging with the customer through social media could result in a genuine advantage at the end of the sales cycle. \u201cThe war in Ukraine, the continuing COVID-19 pandemic, rising inflation, an energy crisis, supply chain disruption and the pressing needs to address climate change combine to produce some of the most difficult sets of global circumstances that business leaders have seen in their careers.\u201d \u2013 Antonia Wade, Global CMO, PwC.","report_button_title":"Click to access the source report","report_button_url":"https:\/\/lp.warc.com\/marketers-toolkit-36"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/trends-cpt\/5641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/trends-cpt"}],"about":[{"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/types\/trends-cpt"}],"author":[{"embeddable":true,"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/media?parent=5641"}],"wp:term":[{"taxonomy":"trend-keywords","embeddable":true,"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/trend-keywords?post=5641"},{"taxonomy":"trend-themes","embeddable":true,"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/trend-themes?post=5641"},{"taxonomy":"trend-categories","embeddable":true,"href":"https:\/\/trends.tuio.ro\/edition\/2024\/wp-json\/wp\/v2\/trend-categories?post=5641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}