{"id":98238,"date":"2021-07-12T15:35:00","date_gmt":"2021-07-12T14:35:00","guid":{"rendered":"https:\/\/evc.extramilecommunications.dev\/are-we-building-our-supply-chains-for-gen-z\/"},"modified":"2024-07-02T15:08:29","modified_gmt":"2024-07-02T14:08:29","slug":"are-we-building-our-supply-chains-for-gen-z","status":"publish","type":"post","link":"https:\/\/www.evcargo.com\/en\/are-we-building-our-supply-chains-for-gen-z\/","title":{"rendered":"Are We Building Our Supply Chains For Gen Z?"},"content":{"rendered":"

By 2026 Generation Z will overtake Millenials to become the largest consumer population (1). The Generation that regard being able to vote in the Brexit poll as an epochal moment, have Greta Thunberg as a role model and due to their online ability are known as \u201cDigital-ites\u201d(4). Digital-ites are soon to become the biggest retail spenders.<\/p>\n

Building brands for the YouTube generation who are reported to have the attention span of 8 seconds (some 50% lower than Millenials) means we need to be getting their attention straight away. Over half of whom in the last 6 months, purchased a product or service online using a mobile. Supply chains need to recognise Generation Z\u2019s vision and values whilst focusing on supporting the sales channels dominated by this era following the millennial generation.<\/p>\n

Here\u2019s a great quote from Gen Z Insights(2):<\/p>\n

\u201cA recent UNiDAYS x Ad Age survey revealed that a whopping\u202f82% of Gen Z students are more likely to buy a product if it\u2019s environmentally friendly. And a separate study from Neilsen showed that\u202f77% of Gen Zs are willing to pay more for those same environmentally friendly products, vs. just 51% of Baby Boomers and 66% of the overall population.\u201d<\/p>\n

We can remain sceptical about any consumer paying more for environmentally friendly products but this is definitely a step in the right direction. So, what supply chain initiatives can have the quickest lasting impact?<\/p>\n

1. Really care deeply about where and how you source.<\/strong><\/h4>\n

Some retailers ethical sourcing teams do a great job of auditing, checking and on-boarding suppliers to meet ethical standards, using portals to communicate information and procedures, but tracking raw materials origins is more of a challenge.\u202f Despite the best endeavours of sourcing office teams and agents, this is difficult without adequate investment.\u202fThe 2019 Christmas Card incident where there was indication that prison labour was being used to pack cards just shows how brand-damaging sourcing failures can be.\u202fWas this fraudulent use of outsourcing? Was it a failure to vet suppliers thoroughly? Was it a failure to learn from other retailers\u2019 dealings with that supplier?<\/p>\n

For Gen Z it is about caring and being seen to care.\u202fInvest in tools to systematically record and analyse every detail about suppliers, invest in people, invest in training.\u202fWith many retailers having thousands of suppliers, way too much data is held in spreadsheets that record and then hide information that could be vital in uncovering the next Christmas card fraud.\u202f Information needs to be available and analysed by stakeholders throughout the organisation, not just the sourcing teams.<\/p>\n

2. Stop shipping air around the world.<\/strong><\/h4>\n

In round numbers some 10 million containers are shipped to the UK each year but, as we know, they typically are between 75% and 90% filled. \u202fIn recent projects, 2 of the top 5 UK clothing retailers improved their container fill by more than 10% through improved supplier engagement, world-class packaging expertise and by introducing a new system for ensuring packaging compliance standards are met.\u202fApplying the same process across the board would lead to around 1 million fewer containers being shipped each year and a material reduction in CO2 emissions from reduced shipping demand. These weren\u2019t initially seen as major investment initiatives \u2013 actually the investment was very modest, but it did require a mindset of change throughout supply chain planning and operations.<\/p>\n

3. Consider how you can implement reverse logistics into your existing supply chain.<\/strong><\/h4>\n

Reverse logistics is a circular view of sustainability that spans the entire product lifecycle. It manages the return flow of goods and materials back to the manufacturer or the logistics network for correct disposal.<\/p>\n

\u201cFashion generates 4% of the world\u2019s waste each year, 92 million tons, which is more than toxic e-waste.\u201d – Pulse Of The Fashion Industry<\/p>\n

\u201cEarlier this year, it was revealed that British luxury fashion house Burberry had been incinerating $40 million of unsold stock as a way of preserving product scarcity and brand exclusivity.\u201d – Forbes<\/p>\n

Essentially, it\u2019s your supply chain in reverse, but the material flow runs from end consumers to suppliers. H&M\u2019s garment collecting programme is a prime example of reverse logistics working in the supply chain, where unwanted clothes are returned in store and \u2018either reused, reworn or recycled with 0% going to landfill.\u2019(5).<\/p>\n

The good news is that if you already execute a returns policy for your end consumers, then you have the capability to implement reverse logistics. Implementing reverse logistics into your supply chain is simple, by extending the product lifecycle post-purchase you can achieve a fully sustainable \u2013 and circular – supply chain.<\/p>\n

So, as Gen Z, Greta Thunberg said “Humanity is now standing at a crossroads. We must now decide which path we want to take. How do we want the future living conditions for all living species to be like?” We must tune in to our emerging customer and align our visions and values so we\u2019re able to invest and create lasting change to the supply chain. Tuning in to the Gen Z population will leave you in good stead for capturing the Digital-ites attention, and securing their brand loyalty whilst working towards your ethical values.<\/p>\n

Sources<\/em><\/p>\n

    \n
  1. The digital commerce and\u00a0<\/em>Gen\u202f report from<\/em>\u00a0business insider intelligence<\/em>\u00a0<\/strong><\/li>\n
  2. https:\/\/www.visioncritical.com\/blog\/gen-z-versus-millennials-infographics<\/em><\/a><\/li>\n
  3. https:\/\/www.genzinsights.com\/to-win-gen-z-show-some-respect-for-the-environment<\/em><\/a><\/li>\n
  4. https:\/\/www.wgu.edu\/blog\/who-is-gen-z-how-they-impact-workplace1906.html<\/a><\/li>\n
  5. https:\/\/www2.hm.com\/en_gb\/ladies\/shop-by-feature\/16r-garment-collecting.html<\/a><\/li>\n
  6. https:\/\/www.forbes.com\/sites\/jonbird1\/2018\/09\/09\/fashions-dirty-little-secret-and-how-its-coming-clean\/#3c668e601771<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    By 2026 Generation Z will overtake Millenials to become the largest consumer population (1). The Generation that regard being able to vote in the Brexit poll as an epochal moment, have Greta Thunberg as a role model and due to their online ability are known as \u201cDigital-ites\u201d(4). Digital-ites are soon to become the biggest retail spenders.<\/p>\n","protected":false},"author":5,"featured_media":183294,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50],"tags":[206],"postlocation":[],"posttype":[],"postservice":[],"class_list":["post-98238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-software"],"acf":[],"yoast_head":"\nAre We Building Our Supply Chains For Gen Z? - EV Cargo<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.evcargo.com\/en\/are-we-building-our-supply-chains-for-gen-z\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are We Building Our Supply Chains For Gen Z? - EV Cargo\" \/>\n<meta property=\"og:description\" content=\"By 2026 Generation Z will overtake Millenials to become the largest consumer population (1). 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