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.

With communities aging around the world, B2C logistics and delivery businesses must consider senior needs as part of the 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.

With more than 6 in 10 of today’s seniors in some countries owning a smartphone (and this is likely to increase in the future), B2C logistics players need 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 mostly 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.

As the purchasing power of elderly consumers grows, the consumer market landscape is shifting towards the preferences of an older population. For example, European Commission reports predict substantial increases in demand for products and services in connected health, smart home solutions, wearable technology, age-friendly education, and silver tourism in the coming decades. Demand for common medical and pharmaceutical products like medication, wheelchairs, and prosthetics are also anticipated to rise.

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.