Even as supply chain issues threaten product shortages, merchants can lean on good will to instill customer confidence
We can say all day long that the traditional and completely valid strategy to weather disruption in sources of supply is “redundancy” and “replacements.” Nonetheless, there are only so much of a given item and a limited number of places where replacements can be obtained (think popular electronics and children’s toys, for example).
If you happen to be a retailer, service provider or product manufacturer, you know the price you pay is passed on to consumers. The current supply chain episode that has consumer goods and manufacturing supplies either waiting on shipping containers or behind in delivery schedules has many nervous about meeting demands – especially in the lead-up to the holiday shopping season.
Global disruptions in production due to the COVID 19 crisis, as well as shortages of workers and even supplies and storage have caused supply-chain bottlenecks that will all but “guarantee” shortages of the things we want and need, as the National Retail Federation put it plainly to MSN Business Insider.
“Shortages are guaranteed," said Jonathan Gold, vice president of supply chain policy at the National Retail Federation. "We've been warning consumers to manage their expectations for the holiday shopping season for months now. The fact of the matter is the supply chain is stretched to its limit from end-to-end."
“Shortages are guaranteed."
PROTECT YOUR BRAND!
To add salt to the wound, the result for customers and consumers can only be higher prices – something which retail and manufacturing analysts also all but guarantee, unfortunately.
While the prediction is a grim one, merchants and manufacturers must build upon the good will they have established with their customers and deliver messages of empathy and solidarity with them.
Our Suggestion: Rally Your Customers
Protect your brand as you make the tough decision to raise prices. Make your stand with your customers and redirect them to the REAL culprit. The higher price is not your doing; it’s no more profit for you – just extra cost for you and your customers, thanks to many factors simply out of your control.
For some businesses, as prices increase (driven by global supply bottlenecks, personnel shortages or otherwise) some buyers fall away, while others may now become more attractive. Consistent and continuous defense of your brand and customers can mitigate the impact of surprises that inevitably occur.
There is no excuse for being in complete disarray when the core segments of your business are disrupted. The good news is in this case is that nothing lasts forever. More good news: When you have a customer-centered contingency in place, you can at least be prepared to execute your “Plan B” with little disruption to sales and operations.
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