When you think of shopping trends, you might not realize how much it affects the back end of a retail business. Millennials developed different purchasing patterns than baby boomers, and this has impacted supply chain management. New special services might be needed to fulfill orders.
Overview of Supply Chain Management
This process typically involves the flow of merchandise. This movement of goods usually begins before production of raw materials and continues to a retail destination where a customer would buy them. SCM incorporates a range of specialties such as engineering, operations management, product assembly and advertisement. In some cases, SCM is applied to the flow of services from creation onto testing and development then consumer delivery.
How Millennials are Changing Supply Chain Management
Contrary to popular belief, millennials do not necessarily always shop online. However, this group, who is aged from about 21-35, may be more likely to follow brands on social media. They also might switch brands quickly if a comparable item of equal quality presents itself for a lower price. In addition, they reportedly prefer eco-friendly and fresh rather than items perceived as convenient that might also be packaged.
Many millennials prefer to shop in a physical store. However, even if purchasing online, they often opt for the quickest delivery. Concerning groceries, many stores have to shorten the time it takes to produce food and stock shelves.
Supply chain management now may require keeping as many varieties of brands in a store as possible. It also could entail more local instead of long-distance shipping. In addition, it must include the implementation of SCM technology that can move product or services to keep up with millennial demands.
Special services that could resolve some millennial marketing include rebranding and marketing consultation. Analysis of your target market before spending money on advertising.