18-34 year olds, known as millennials, are predicted to significantly impact supply chains in the near future a new study suggests.
According to a survey carried out by EFT (the supply chain and business intelligence group), social, mobile and online media will all contribute to the transformation of supply chains. 300 logistics and supply chain executives contributed to the October 2015 study. 69 per cent of participants felt that consumer purchasing habits and as a result, the supply chain would be effected and impacted by millennials
Understanding and Adopting Technology
New and fresh innovations within supply chain organisations would almost certainly be driven by the increased ability millennials have when it comes to understanding and adopting the latest technology, 55 per cent of respondents agreed. This could be of huge importance for many as they attempt to become differentiated, particularly those companies specialising in logistics.
Retailers and manufacturers, such as Rackzone who are providers of pallet racking in Ireland, would also benefit from greater knowledge of the consumer base provided by millennials and the resulting innovation.
The widespread use of predictive analytics is expected to rise. The report supported this theory, with 60 per cent of participants already using or expecting to begin using these by 2018. Mergers & Acquisitions (M&A) within the logistics industry was considered a positive step by almost half of respondents (48 per cent), with 39 per cent preferring the larger scale service across a broader geographical area, which could be provided as a result of M&As. In-depth data analysis allows organisations, and industries as a whole, to make more accurate predictions for the future
Consolidation
Consolidation was reported as a positive thing by 46 per cent of logistics providers, making a fragmented industry more cohesive. However, there were concerns that overzealous M&A activity could lead to increased competition. Another 13 per cent of respondents were set to embark on their own M&A as a result of other M&A within the industry. Many were looking to take advantage of changing global demand, cross-border trade and e-commerce.
Consolidation was also reported to be considered a positive move by retailers and manufacturers. Companies are expected to respond to change through a mixture of organic growth, acquisition and innovation. Tech-enabled, asset-light businesses would be the new players in the supply chain.