Beneath the buzz of emerging technologies and evolving consumer habits, a quieter, possibly more profound, shift is taking place: the ageing of the global population. Despite its growing impact, this is a topic that doesn’t garner nearly enough attention in the supply chain world. Well, it’s time to talk about it – and prepare for this demographic shift.
The global population is ageing at an unprecedented rate, and this will profoundly impact the way we live, work, and do business. Consumers and workers will be older, with seniors accounting for one-quarter of global consumption by 2050. But as they say, with every challenge comes an opportunity. Companies that adapt will remain competitive and find new ways to drive business growth.
We’re seeing this slowly emerge. For example, Pottery Barn recently redesigned its most popular furniture lines to include accessible features. With subtle tweaks to their chairs, dressers, and beds, the retailer’s redesign is aimed at making life easier for everyone, including people with limited mobility.
Pottery Barn’s initiative to integrate accessibility features into its furniture is a prime example of how companies can anticipate and meet changing consumer needs. This move reflects a broader necessity: supply chains must evolve to accommodate an ageing consumer base.
A Demographic Shift That Calls for Supply Chain Adaptability
According to the United Nations, population ageing is a defining global trend of our time. Advances in healthcare and rising life expectancies mean that a significant portion of the world’s population is moving into older age brackets. This shift presents challenges and opportunities for supply chains that have long been optimized for a younger consumer base.
For organizations, this demographic change goes beyond accommodating an ageing workforce; it also means rethinking product design, packaging, logistics, and overall supply chain adaptability.
Ageing populations influence consumer behavior in numerous ways. For example, older individuals may have limited mobility, requiring lighter and more ergonomic products. They may also prefer smaller packaging due to reduced consumption needs or their limited ability to handle bulkier items.
Supply chains should be restructured to accommodate these new consumer realities. Some key areas to consider include:
- Product and Packaging Redesign: Lighter, easy-to-open packaging will become more important. Manufacturers across industries should prioritize ease of use in product design.
- Logistics and Distribution Adjustments: Companies must consider how older consumers receive and handle deliveries, and rethink packaging strategies to ensure accessibility without sacrificing efficiency. Heavy, unwieldy packages can be impractical for some individuals, making last-mile delivery innovations essential.
- Retail and In-Store Adaptations: Brick-and-mortar stores should reconsider their layouts, ensuring accessibility for shoppers with mobility challenges. This could mean wider aisles, lower shelves, and increased in-store assistance services.
Leveraging Advanced Supply Chain Planning Software for a Resilient Supply Chain
Ageing populations are also changing the workforce, making automation and AI-driven supply chain management more critical than ever. Labor shortages, driven by declining birth rates and an ageing workforce, mean companies must integrate technology to maintain efficiency.
Key technologies support and help build supply chain resilience. For example, automation and robotics will continue to be on the rise, with warehouses and manufacturing facilities utilizing robotics to offset labor shortages and increase efficiency.
AI/ML and predictive analytics in supply chain planning software help companies predict demand shifts associated with demographic changes, allowing businesses to intelligently plan for market changes, and optimize inventory and distribution.
The Case for Scenario Planning: Staying Ahead of Demographic Shifts
Companies must embrace scenario planning to prepare for an ageing consumer base. This involves modeling different demographic trends and assessing their impact on supply chains. Some essential questions to consider include:
- How will shifting demographics affect product demand?
- Will existing logistics and distribution networks remain viable?
- How can companies incorporate demographic insights into product development?
Seize the Opportunity
Not too long ago (although it’s starting to feel like it!) the pandemic forced companies to rethink supply chain agility. Now, the ageing population is driving another wave of transformation. This isn’t a distant trend – it's happening right now.
No matter what industry you’re in, this shift will shape economies and societies, influencing everything from healthcare and education to employment and taxation. For businesses, accessibility could be the next big thing in product innovation. The question is: Is your supply chain ready?
Those who act early to address the shifts will be best positioned to serve future markets and maintain long-term profitability. It’s an opportunity for forward-thinking companies to differentiate themselves and gain a competitive edge.
We help companies like yours integrate adaptability into their supply chain strategies to stay ahead. Through strategic planning, we can help you proactively prepare for demographic and consumer changes, ensuring your business thrives in the years ahead. Let’s start the conversation!
