April 12, 2022
7 min read
The supply chain disruption that has been dominating the headlines is a complex and multi-faceted issue to be sure. Much has been said and written about what is snarling the global supply chain: too few truck drivers, dormant factories due to COVID, backlogged ports, you name it.
However, one contributing factor that has been less explored, but which is perhaps one of the most significant disruptors of the supply chain, is the rapidly evolving purchasing preferences of the different generations. How, where and why we buy looks very different than just a few years ago, and that stretches from Baby Boomers to Gen Z. Taken together, it represents a massive shock to the supply chain, and one that supply chain leaders need to be fully aware of and plan for going forward.
With that many more people now shopping online, and with all the different expectations that come with the virtual experience, it’s no wonder the supply chain is rattled.
Access to information: Across the generations, consumers now expect immediate access to product information. Not only that, but the information needs to be clear, relevant and personalized with product descriptions and reviews.
Understand that speed is everything: Regardless of the generation, they all expect near instantaneous fulfillment. Waiting days, or even hours, to receive what they want when they want it, is now less and less acceptable. And when it comes to Gen Z, they will choose the retailer and brand that can provide what they want the quickest. To keep up, delivery should be nimble and include different options.
Show your social responsibility: As stated above, newer generations care deeply about the social and environmental impact of their purchase decisions. They expect clear and detailed information about how a product, and the company behind it, is making the world a better place.
Prepare to personalize: Millennials and Gen Z expect their digital experiences to be reflective of what they’d experience in person—speak directly to them. Literally, them as individuals. The messaging and products they encounter online should be specifically curated to their tastes and interests. Brands need to make the case that they “know” their consumers personally with their product positioning, which requires robust data analytics and predictive modeling to make that happen.
Amplify with social media: Social media IS the new online marketplace. Many Gen Z and Millennials are learning and, get this—engaging—with brands, the latest trends and products through their Instagram and TikTok feeds. Brands need to be present on social media if they are going to be competitive with these generations. Consider this: more than 76 million people in the United States will make a purchase via a social network at least once this year.
Be ready for tomorrow: Millennials and Gen Z make up 51 percent of the population. They are the most educated and will soon likely have more purchasing power than the other generations. Prepare for this eventuality by gathering data about their preferences and build a dynamic and efficient execution strategy going forward.
Be flexible in delivering your goods: Our purchasing experience is now fluid, consumers are no longer thinking of online and brick and mortar buying as separate. For example, have you ever been in a store and looked at your phone to see what aisle something was in or what the reviews were on the different TVs available? Recognize that and develop systems and processes that accommodate this “hybrid-buying” future.
React to new trends: All generations are collapsing their online and in-person shopping habits. While the online world offers quick and easy ways to research products (price, quality, origin), there is still a desire to experience (see, feel, touch) products in the real world.
What this all comes down to is the convergence of generations and how they expect to be treated during their purchasing process. New trends arise on a near daily basis, and consumers respond quickly and make purchasing decisions accordingly. However, they are also more likely to move on to another trend just as quickly. What this requires, is a dynamic digital supply chain fueled by real-time data and analysis. What’s possibly even more important, is that your team has the digital skills needed to run this dynamic digital supply chain in order to match expectations and demands.
Is your team prepared for the digital demands on your supply chain as a result of these generational shifts? Connect with a member of our team today to see how we can help.
By Issam Abu-Ghallous, Ph.D., MBA, Associate Professor of Economics, DeVry University
Issam earned a BA in Business Administration from Bethlehem University in Palestine, an MBA from Lewis University, and a Ph.D. in International Economic Development from the University of Southern Mississippi. Issam joined DeVry University in 2015 and is currently teaching and designing economics and international relations courses.
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