Silver Economy

Supply chain workers, especially those in operations, often have arduous shifts and contracts that may not be a good fit for those who are older and considering retirement. As much knowledge can be lost when an employee retires, organizations can stop this brain drain by reviewing and reforming work policies to accommodate older employees.

Senior worker support packages, such as flexible hours and part-time employment, can help retain retiring talent in an era of labor shortages. With these accommodating policies, time-experienced employees can still support their colleagues and, in particular, extensively share their valuable knowledge and skills. Furthermore, leadership can provide suitably ergonomic furniture and communicate to the entire team the value of its senior members in order to make the workspace more comfortable for older workers.

With communities aging around the world and with more than six in 10 of today’s seniors in some countries owning a smartphone (and this is likely to increase in the future), business-to-consumer (B2C) logistics and delivery businesses must consider senior needs as part of the overall customer experience, especially in the digital realm. Recently, retailers and digital marketplaces have released ‘elderly-friendly’ versions of their apps, with less crowded interfaces, bigger text, navigation shortcuts, and digital connections with family to share products and manage expenses.

Additionally, vendors should evaluate offering additional services like free advice and pre-purchase and post-purchase support with clear calls-to-action (CTAs) for its elderly consumers. While digital channels are growing and becoming more commonplace, support through phone, mail, and physical locations should not be overlooked. Overall, B2C logistics needs to adapt and incorporate changes to accommodate and meet the expectations of older customers along the entire supply chain – from order placement to last-mile delivery – or risk losing market share to age-friendly competitors.

The lockdown policies of the COVID-19 pandemic cultivated the diversification of traditional delivery services with the aim of supporting the older population. With many senior citizens unable to leave their homes and restricted in their daily activities, businesses and governments collaborated to ensure they still received essential goods at home.

To lower the risk of virus exposure, pharmacies, grocery stores, and other businesses started offering contactless home deliveries. While lockdowns and other restricting policies have been removed, last-mile services are anticipated to continue expanding beyond food and product delivery. In-home medical check-ups, home cleaning, transportation services, tech support, and auto-replenishment of goods such as medicines are speculated value-added last-mile services to be tested in the mid-term future.

The consumer market landscape is shifting towards the preferences of an older population. In many geographies, the aging community represents a demographic with substantial purchasing power demanding high quality, longevity, and even more individualized experiences, but it also represents a change in the kinds of products demanded.

For instance, according to Rothschild & Co Asset Management Europe, people aged over 50 have been increasing their spending on products in healthcare, food, leisure, communication, housing, and overall goods and services since 2011 and, simultaneously, decreasing their spending on transportation, alcohol/tobacco, clothing, restaurants/hotels, and education. While fluxes are heavily dependent on the state of the economy, inflation, and other factors, overall demand for common medical and health products like medication, wheelchairs, prosthetics, and nutritional goods is almost certain to rise as more people age.

Logistics organizations need to adequately prepare operationally for the gradual increase of these products in the supply chain and the challenges this will present, especially as providers begin offering more personalized products and bespoke services to older customers.