SAP News Center

Shop Now or Forever Hold Your Peace: Supply Chain Frustrations Accelerating Holiday Sales

Holiday shopping is in full swing – at least for the consumers paying attention to supply chain trends.

Those of us in the supply chain industry understand that disruptions have persisted since March 2020. This has created a mainstream perception of supply chains as increasingly volatile, expensive, and unreliable – but disruption has been more of an intermittent and confusing frustration for most in 2021, instead of the panic-buying and supply-hoarding catalyst it was in 2020.

Going into the holiday season, some industry insiders are fearful that these disruptions will hit hard again. Supply chain disruptions are forcing companies to think twice about the timing of their holiday sales, and many retailers are warning consumers to get their holiday shopping done early this year to avoid shortages and shipping delays. In fact, many retailers such as Amazon and Target announced their holiday deals much earlier than usual this year, having started in early October rather than late November. Leaving the majority of holiday shopping to Black Friday weekend could lead to many consumers being sorely disappointed with bare shelves, empty online shopping carts, and delayed deliveries.

With persistent challenges in procurement and the supply chain, SAP surveyed 1,000 American adults to help better understand how they view the latest supply disruptions and their sentiment around the industry overall. Some interesting findings surfaced:

After last year’s chaotic holiday season that had more consumers buying online than ever before, proactive businesses and consumers are adapting their approach this season, especially with ongoing disruption anticipated this year.

For consumers, as of early October, almost a third (29%) had already changed at least one gift purchase based on supply chain shortages, and only 24% of total respondents expressed that they do not plan to shift their buying behaviors this holiday season. Almost half (45%) are buying earlier, and 44% are buying more online. Millennials are changing their plans the most, with 55% buying earlier than in previous years.

For businesses, agility and visibility are the name of the game. We have all experienced so much disruption from all angles recently, and there’s no going back to “normal” as consumers – and businesses – continue to change buying behaviors.

Businesses need to broaden visibility not only across their own operations but across those of their trading partners as well, with the dual objectives of reducing risk and instilling resilience. To achieve this level of transparency, businesses are turning to digital business networks to capture the widest possible view into the interconnected operations of their trading partners from buyers and suppliers to partners in logistics, finance, and contingent labor. Meanwhile, these digital networks – previously discrete according to function – are beginning to converge through cloud-based applications, unlocking exponential value in the process.

Consumers and businesses alike have been burned by supply chain issues and shortages during the pandemic, but with the right approach to this holiday season, we can still make it a merry one.


Etosha Thurman is chief marketing and solutions officer for Intelligent Spend and Business Network at SAP.

Exit mobile version