The post Covid-19 shifts in consumer behaviour that are reshaping Supply Chains globally
Claire Stuart • October 18, 2024
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The Covid-19 pandemic brought disruptions on a scale never seen before and not just affecting one industry but every industry possible had to adapt how their Supply Chain to meet the ever changing demands of the Consumer.
We saw shifts from changing expectations of what the consumer was actually buying, to accelerated adoption of e-commerce in markets that just weren’t ready for the scale-up they needed to deliver to meet this demand. You could quite literally say that covid-19 as the catalyst has brought a chain reaction of events that mean the way consumers shop, live and interact with brands has changed forever.
Some of the main areas I have seen the most impact on Supply Chains are:
The surge in E-Commerce and how it impacted Supply Chains in an instant!
Before the pandemic, online shopping was already growing steadily, but Covid-19 acted as a catalyst, driving e-commerce to new heights. In many markets, consumers turned to online channels for necessities, from groceries to home goods through sheer necessity or out of fear of exposure to people in the stores. Even as brick-and-mortar stores have reopened, e-commerce has maintained its momentum in a number of markets all over the world (but not every market!).
This surge in online shopping has had several critical impacts on Supply Chains:
- Increased Pressure on Last-Mile Delivery: Consumers now expect fast (often same-day or next-day) delivery, which has meant ever increasing pressure on last-mile logistics. With some organisations having to pivot and invest in solutions like micro-fulfillment centers, local warehouses, and automated delivery systems to meet expectations.
- Rise of Direct-to-Consumer (DTC) Models: Brands are increasingly bypassing traditional retail channels and selling directly to consumers online. This shift requires a more agile and responsive Supply Chain, focusing on smaller, more frequent shipments and enhanced customer experience. We have also seen this play out in ‘ship from stores’ models too.
- Demand for Real-Time Visibility: With more purchases made online, consumers expect real-time tracking and updates on their orders. This requires greater visibility and transparency throughout the Supply Chain, driving the adoption of advanced tracking systems to keep consumers informed.
Shifting product preferences and demand volatility!
The pandemic caused a dramatic shift in what consumers buy, with demand for health, wellness and essential goods skyrocketing. At the same time, non-essential items experienced fluctuations, seeing some of the most bizarre items featured in the top 10 items of the week e.g. bread maker. The most proactive organisations saw investing in their Supply Chains as a way of getting head and beating the volatility in demand.
Some of the areas of investment and demonstration of flexibility have been:
- Agility in inventory management: The unpredictable nature of demand during the pandemic has highlighted the importance of demand forecasting and inventory management. Supply Chains must become more agile, ensuring they can pivot quickly between different product categories to meet fluctuations in demand. This has led many businesses to invest in AI-driven demand forecasting tools that help predict consumer trends more accurately.
- Increased Focus on Sustainability: Consumers have also grown more conscious about the environmental impact of their purchasing decisions. Post-pandemic, many consumers are seeking brands that offer sustainable products and packaging. Supply Chains are now evolving to meet these demands by sourcing eco-friendly materials, reducing carbon footprints, and embracing circular economy models.
Growing Importance of Supply Chain Resilience
Covid-19 exposed vulnerabilities in global Supply Chains, such as heavy reliance on single suppliers or regions, which led to massive disruptions during the pandemic. Consumers, now more aware of these vulnerabilities, are increasingly looking for reliability and consistency in product availability.
- Nearshoring and Reshoring: To build more resilient Supply Chains, many companies are shifting from offshoring production in distant countries to nearshoring (bringing production closer to home) or reshoring (bringing it back to domestic markets). This reduces the risks associated with long lead times and dependence on specific regions.
- Supplier Diversification: Businesses are diversifying their supply base, moving away from single-supplier relationships, which reduces the risk of future disruptions. This shift also allows supply chains to better manage fluctuating demand and mitigate geopolitical risks.
A Consumer-driven Supply Chain “Chain Reaction”!
Consumer behaviour has fundamentally changed in the wake of COVID-19, and Supply Chains must evolve to keep pace. Businesses that adapt to these shifts—by embracing e-commerce growth, enabling omni-channel experiences, enhancing Supply Chain resilience, and focusing on sustainability—will emerge stronger and more competitive in the post-pandemic world.
The key to success is agility. By investing in technology, resilient Supply Chain practices, and customer-centric strategies, companies can not only meet changing consumer expectations but also thrive in the new normal.
Are you seeing changes in your industry or business related to post-Covid consumer behaviour?
Let me know in the comments how you're navigating these shifts!
Starting a new business is always full of surprises, challenges, and, most importantly, valuable lessons. Over the past five weeks, Chain Reaction Recruitment has experienced significant growth and discovery. From stepping into the unknown to forming genuine connections, these early lessons have shaped the foundation for what’s to come. Here’s a look at the key takeaways from the first weeks of building Chain Reaction Recruitment. Week 1: Expectation vs. Reality The first week of running Chain Reaction Recruitment came with a few surprises. What seemed like a huge shift in the way things would operate turned out to be not so different after all. It’s not so different – The assumption that the work would change drastically was quickly proven wrong. The mission has always been the same—connecting talented individuals. People are kind – Even without the backing of a large corporate, it became clear that people genuinely want others to succeed. When you’re authentic, knowledgeable, and add value, people are more than willing to support you. Your ‘why’ is important – Understanding the purpose behind the work helps to form deeper, more meaningful connections. This week provided the chance to share the personal journey in a way that felt true to myself, helping to build stronger relationships. Week 2: Leaning Into the Unknown By week 2, the learning curve became steep, as expected. Stepping into the unknown was both exciting and exhilarating. Technology is your friend when used correctly – The right systems and processes, specifically designed for the sectors supported, helped create efficient workflows, ensuring speed and quality service. Knowing your own value – With over a decade of experience in Supply Chain and Planning and S&OP recruitment, it became evident that aligning with values-driven partnerships is essential. The focus now is on working with those who share similar goals and vision. You are only as strong as the team around you – While starting out as a solo operator was the initial plan, I quickly realised the importance of building a strong support network. A handpicked team of trusted vendors has been invaluable in setting the business up for success, leaving me to focus on what I do best—connecting talented individuals. Week 3: Connections Through Vulnerability, Gratitude, and Humour By week 3, the power of authenticity became even clearer. Vulnerability, gratitude, and humour proved to be key in building trust and opening doors. Vulnerability – Sharing the challenges of starting Chain Reaction Recruitment allowed others to relate and trust in the journey. It also created a space where others felt comfortable sharing their own stories. Gratitude – Even when potential customers weren’t in a position to move forward, taking the time to thank them made a big difference. Showing appreciation for their time and response helped build goodwill and opened new possibilities. Humour – Authenticity is at the core of Chain Reaction Recruitment, and that means bringing my true self to conversations. A bit of humour and quick wit have proven to be a great way to connect with others and make the experience more enjoyable. Week 4: Saying ‘Yes’ to New Opportunities By week 4, it was all about stepping out of my comfort zone. Saying "yes" to opportunities I wouldn’t have considered before proved to be a game-changer. ‘Do one thing every day that scares you’ – Leaning into the unknown, even when it’s uncomfortable, has helped broaden my mindset and opened up new opportunities. The more I embraced challenges, the more growth I experienced. Don’t make assumptions – Asking the right questions and keeping an open mind has led to better decision-making. Staying flexible and open to different possibilities has been key in delivering better outcomes for customers. Be open-minded – Saying “yes” has led to new opportunities and opened up doors I hadn’t expected. Being open to what’s out there has proved to be invaluable for both personal and professional growth. Week 5: Stepping Into Clarity By the fifth week, a moment of clarity arrived. The realisation that not everything needs to be done the same way it’s always been done came into focus. ‘We’ve always done it this way’ – Just because something has worked in the past doesn’t mean it’s the right approach for the future. Adapting to change is essential, and creativity is key when finding solutions for evolving customer needs. ‘Trust the process’ – Success doesn’t happen overnight, and it’s important to have faith in the journey. By staying consistent and doing the right things, the rewards will follow in time. ‘Be comfortable with being uncomfortable’ – Stepping into discomfort often leads to the biggest wins. Sometimes, the smallest acts that seem challenging are the ones that bring the greatest results. The first five weeks of Chain Reaction Recruitment have been filled with both challenges and breakthroughs. There’s no doubt the journey has only just begun, but the lessons learned so far are laying the foundation for what’s to come. As the business grows and evolves, staying curious, authentic, and adaptable will continue to drive success. If you’d like to get in touch or learn more about Chain Reaction Recruitment, don’t hesitate to reach out , or you can also get in touch with us at claire@chainreactionrecruitment.com.au or 0468 945 182 Let’s start a chain reaction together.
The Launch of Chain Reaction – An Innovative Catalyst and Alternative Solution for Supply Chain Talent Acquisition [Melbourne, 24/10/2024] — Supply Chain industry veteran Claire Stuart has launched Chain Reaction Recruitment, an agency specialising in placing senior talent across the value chain, from Supply Chain, Sourcing and Manufacturing, to Planning, Logistics, Merchandising and Buying, across a wide range of industries. The launch heralds an expansion of the Supply Chain recruitment market, bringing unique expertise to Australia steeped in a long family tradition of Supply Chain and Logistics experience. Chain Reaction Recruitment will provide a full suite of recruitment services for permanent, contract, and executive roles, combined with career consultancy, market mapping and talent advisory. Claire Stuart, a three-generation Supply Chain professional, says her goal is to empower employers and professionals with a hands-on experience that provides ongoing guidance beyond initial placements. “ I grew up in a family rooted in Supply Chain and Logistics, giving me a firsthand understanding of its unique challenges and opportunities,” she says. “With Chain Reaction Recruitment, I’m focused on building lasting relationships, where I truly get to know employers and candidates in this market, supporting them in finding the best fit for all parties. ” “ As an experienced recruiter, my goal has always been for my network to see me as a trusted sounding board and partner—offering support, advice, and solutions—not just to fill roles! ” Speaking of the inspiration for the business name, Claire Stuart says “ Every career and business journey begins with a catalyst, a moment that sparks the path forward. At Chain Reaction Recruitment, we strive to be that catalyst, going beyond the transactional to help companies and individuals fulfil their goals. ” Claire is excited to launch Chain Reaction Recruitment and make a meaningful impact on Supply Chain recruitment in Melbourne and Sydney. Driven by her core values—passion, innovation, curiosity, and authenticity—she brings years of experience and a strong network to the table. Claire looks forward to reconnecting with familiar faces and welcoming new employers and jobseekers, offering personalised support and expert guidance as they navigate the evolving industry together. About Claire Stuart: Claire Stuart is an accomplished recruitment professional with extensive experience across Australia and the UK. Her strong ties to the Supply Chain, Logistics, Procurement, and Planning sectors stem from a family legacy in the industry. Having also worked in retail, Claire has a practical understanding of the roles and markets she recruits for. Since 2012, she has been committed to helping employers and jobseekers build strong teams and advance their careers – a dedication reflected in the numerous awards and accolades she has received. About Chain Reaction Recruitment: Founded in 2024, Chain Reaction Recruitment merges extensive Supply Chain industry knowledge with strategic talent and career consultancy. We focus on connecting skilled professionals in Supply Chain, Operations, Logistics, and Procurement with employers across Australia. For more information contact; Claire Stuart Founder & Director Chain Reaction Recruitment claire@chainreactionrecruitment.com.au 0468 945 182
In today’s fast-paced and unpredictable global marketplace, demand forecasting is a crucial component of Supply Chain management. Accurate and timely demand forecasting allows organisations to make informed decisions, optimise operations, and align supply with customer expectations. However, traditional demand forecasting methods often fall short in the face of market volatility, shifting consumer preferences, and supply chain disruptions. This is where optimum demand forecasting comes into play—a sophisticated, data-driven approach that enables organisations to improve accuracy, agility, and resilience. In this blog, we’ll explore the key benefits of implementing optimum demand forecasting in your Supply Chain and why it’s vital for organisations aiming to get an edge on their competitors! Enhanced inventory management and reduced stockouts One of the most critical benefits of optimum demand forecasting is the ability to align inventory levels with real market demand. Organisations often struggle with maintaining the right amount of inventory - too much can lead to excessive holding costs, while too little can cause stockouts and lost sales. With optimum demand forecasting: Right inventory levels: Companies can accurately predict how much stock is needed and when, reducing overstock situations that tie up capital and avoiding stockouts that damage customer satisfaction. Improved order fulfillment: With better forecasting, businesses can ensure they have the right products available at the right time, leading to higher order fulfillment rates and on-time delivery performance. Avoiding obsolescence: Especially for industries with rapidly changing products, like electronics or fashion, optimum forecasting helps avoid the buildup of obsolete inventory that may be difficult to sell at full price. Ultimately, optimum demand forecasting optimises inventory turnover rates, ensuring that products move efficiently through the Supply Chain, reducing waste, and minimising carrying costs. Cost savings across the Supply Chain Supply Chain operations are often expensive, with high costs associated with manufacturing, transportation, warehousing, and labour. One of the most effective ways to control these costs is through demand forecasting. Reduced safety stock: Traditional supply chains often rely on high levels of safety stock to protect against demand variability. By improving forecast accuracy, organisations can reduce the need for excessive safety stock and lower inventory holding costs. Optimised production schedules: Manufacturers benefit from optimum demand forecasting by aligning production schedules with real-time demand data. This helps reduce production costs related to overproduction, emergency orders, or underutilisation of resources. Minimised expedited shipping costs: Forecasting demand accurately helps companies plan transportation and logistics more effectively. This means fewer last-minute rush shipments, which can be significantly more expensive, and the ability to choose more cost-efficient shipping methods. Better demand forecasts lead to optimised supply chain processes and significant cost savings, enhancing a company's overall profitability. Improved supplier relationships and collaboration Optimum demand forecasting isn’t just about benefiting the internal Supply Chain; it also plays a key role in strengthening relationships with suppliers. Better lead time planning: Suppliers can rely on more accurate forecasts to align their production schedules with their customers' needs. This leads to improved on-time deliveries and fewer delays caused by last-minute order changes or spikes in demand. Stronger supplier partnerships: Consistent communication and data sharing based on reliable demand forecasts create a more collaborative environment, allowing suppliers to be proactive in managing their inventory and resources. Stronger supplier relationships foster better pricing negotiations and higher quality service. Faster response to disruptions: When businesses and their suppliers operate with synchronised demand data, they can respond more quickly and efficiently to supply chain disruptions, such as raw material shortages or logistics delays. Optimum demand forecasting creates a collaborative ecosystem where suppliers and manufacturers can work together seamlessly to meet customer demand, minimise risks, and streamline processes. The strategic advantage of optimum demand forecasting Optimum demand forecasting is more than just a tool for predicting consumer demand—it is a strategic asset that can drive cost savings, improve customer satisfaction, enhance supplier relationships, and create a more agile, resilient supply chain. In a world where uncertainty and volatility are becoming the norm, businesses that invest in advanced demand forecasting will be better positioned to thrive. By integrating advanced technologies, fostering collaboration across the Supply Chain, and continuously refining forecasts through data-driven insights, companies can optimise their supply chain operations, meet customer expectations, and stay ahead of the competition. Are you leveraging optimum demand forecasting in your supply chain? Let us know how it’s impacting your business in the comments below!
