New SAP research reveals shift in consumer buying behaviours

Rising inflation, economic woe and uncertainties are impacting consumer buying behaviours and diverging across different generations, SAP reveals.

Newly published researched carried out by SAP reveals consumer buying behaviour that provides valuable insights for procurement and supply chain.

The research was carried out based on a survey of 1,000 consumers and reveals spending patterns that reflect the wider economic and psychological milieu, as well as generational disparities in spending patterns.

With the holiday season fast-approaching, the insights to be garnered by the data are perhaps even more acute.

The research demonstrates that current global and national economic woes are at the heart of consumer spending, likely to have a massive impact on procurement and supply chain if they are unprepared.

The data reveals that 75% of consumers believe that a recession is approaching and as such, their spending behaviour is in flux. This means unpredictability for procurement and supply chains, coupled with the holiday season which normally translates to a major uptick in consumer spending.

The unpredictability in the nature of current consumer behaviour however, could spell diffculties for procurement and supply chain.

The data echoes a recent report that Supply chains are “the first to feel the impact” of inflation and recessions and procurement managers must act now to protect businesses from oncoming shocks. 

This trend is exacerbated by the revelation that, according to the SAP research, 66% of respondents also plan to change their holiday spending compared to recent years, including 69% Gen Z respondents, as well as 76% Millennial respondents planning to cut-back.

The numbers may prove daunting for organisations who lack the agility to adapt to these changes in consumption. With the impact on consumer behaviour brought about by covid, along with the state of the economy, the data reveals that 39% are shopping online more.

The digitalisation of procurement processes, have the power to offset any potential losses that arise out of such states of unpredictability in consumer spending.

Digitalisation of procurement processes serve to create visibility, thereby acting as a counterbalance to changeability, allowing procurement functions to quickly adapt and plan by remaining agile under unfavourable conditions.

Those organisations who have failed to digitise, will have less insight and therefore prove less agile and able to adapt. 

The moral of the story: Whatever your business, digitise your supply chain and procurement processes if you want to succeed.

Share

Featured Articles

How public procurement exposes conflicts in processes

Attempting to systemise procurement from legislation to processes is difficult but resolution is key to global efficiency

Experts reveal factors contributing to staff turnover

With recent reports of increasing stress among procurement professionals leading to high staff turnover, Loopin experts give advice on curbing the tide

Public procurement and the protection of SMEs

Neville-Rolfe argues it’s time to give smaller companies a bigger slice of the procurement pie as global procurement transforms under various pressures

If AI is an ESG issue, will Procurement have to create it?

Procurement Strategy

Orozco, Diageo CPO to lead Procurement at Kraft-Heinz NA

Procurement Strategy

Eight steps to navigate the headwinds of cost inflation

Procurement Strategy