eng
About   |   Newsletter
Demand & Supply Chain Management Evolution




11 Jun 2019
UPS report finds generational buying preferences are changing the traditional industrial model.

UPS
UPS

UPS report finds generational buying preferences are changing the traditional industrial model.

As the demographics of industrial buyers shift, businesses must adapt to accommodate evolving customer demands and preferences by offering faster, more customer-focused services.

The fourth UPS  (NYSE:UPS) Industrial Buying Dynamics study revealed how a new wave of buyers is shaping the industrial buying landscape today.

“The rise of Millennials in the workplace ushers in a new era that challenges long-standing industry norms,” said Brooke Yamini, Vice President of Marketing Operations at UPS. “Not only do these young, tech-savvy customers want orders delivered quickly, they are also influenced by additional services and post-sales support.”

The UPS study revealed four ways these new buyers are shaking up the industry.

 

Shifting Demographics.

Thirty-eight percent of this year’s survey respondents were Millennials, an increase of 10 percentage points from 2017. This growing generation of buyers is less loyal to tradition, often preferring to conduct research via social media rather than contacting a sales representative. Millennials also tend to consider factors including sustainability and after-sales support over more traditional factors like quality and price. However, despite their growing influence, Millennial buyers are still more restricted in what and how much they can buy versus the more experienced Baby Boomer generation.

 

Shifting Procurement Patterns.

Buyers continue to shift spending, purchasing directly from manufacturers or online marketplaces. Millennials show a growing preference for buying directly from manufacturers — an increase of almost 20 percent in the past two years. During the past two years, distributors saw a 15 percent decrease in purchase share to 38 percent, while manufacturers and online marketplaces have grown 10 percent and 17 percent, respectively.

 

Shifting International Sourcing.

Robust international sourcing is on the rise. Millennial buyers say they order nearly half their products internationally – far more than Baby Boomers or Generation X buyers. Survey respondents are also willing to pay more for faster service across borders — 26 percent expect orders in two days, while 81 percent say their orders sometimes require same-day delivery.

 

Shifting Post-Sales Support.

Assistance after a sale continues to be an important component of business deals. While this trend is growing across all buyer generations and product groups, Millennials’ need for flexibility influences this shift. In fact, 87 percent of Millennials indicated they are likely to shift their business to attain better post-sales support in the next three to five years.

 

For manufacturers, online markets and distributors, the message is clear: Industrial buying in 2019 requires greater analysis and customization than in the past. Knowing the buyer — age, background, etc. — now matters more.

Additional findings and insights are available in the UPS Industrial Buying Dynamics executive summary, which can be downloaded at ups.com/insight.

 

 

 

 









 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 5 Nov 2019
PMI rises to six-month high in October
   Source: Markit US Manufacturing PMI   -  IHS Markit
United States 


Chemicals & Pharmaceuticals

Maximum safety and reliability and reducing the costs for our customers at the same time: we are able to offer the chemical industry an extensive range of chemical logistics services that hardly any other logistics specialist can match. It is our goal to harmonise our services with your specifications in s...


Golf and the art of supply chain improvement

I’ll admit it, I am a not a great golfer. Even though I can now drive the ball well, two years ago I could barely make contact. Like every golfer, my short game needs work and more often than not I’m happy...


Education
 
 3 
Dec
2019
Analytics for Supply Management 1: Fundamental Concepts & Techniques S&OP WEEK
     Orlando, FL
 5 
Dec
2019
Transitions from Supply Chain Management, Sales and Operations Planning to Integrated Business Solutions
     Orlando, FL
14
Jan
2020
Category Management: Analyze the Data, Strategize your Plan, Deliver Big Results
     Phoenix, AZ
22
Jan
2020
Legal Foundations of Supply Management: The Basics You Need to Succeed
     Nashville, TN
28
Jan
2020
Supply Chain Logistics: Inventory Management, Warehousing and Transportation
     Las Vegas, NV

Local & Regional Agenda
 


Resources
 
MADEL: Roadmap to Industry 4.0: Planning & Scheduling in the personal & home care industry

Established in 1977 Madel Spa, is a leading Italian manufacturing company specialized in products for home & personal care. Madel’s mission is the capability to create high-quality and environmentally sustai...

The Connected Value Chain: Creating Durable Value with Digital

Today’s businesses are faced with a dizzying array of digital promises—and threats: the Internet of Things, wearables, additive manufacturing, big data and analytics, gamification, ubiquitous access, and hype...


International Agenda