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Differentiating Home Delivery: The Gen Z Factor
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1 an agoon
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The pandemic-era ecommerce boom that once supercharged online sales is losing steam. In 2020, U.S. ecommerce sales skyrocketed to around 35%, compressing a decade’s worth of growth into a single year. Fast forward to 2025, and the pace has significantly slowed, with projected annual growth hovering around 6%—a stark contrast to the pandemic peak of 18–20%. Although U.S. retail spending grew by 1.7% in March as consumers anticipated new tariffs, momentum quickly fizzled. April saw a meager 0.1% increase, highlighting a broader slowdown in consumer confidence amid economic uncertainty and rising costs.
Complicating matters, e-commerce retailers—particularly those heavily reliant on imports from China—are feeling the pressure from higher costs of goods sold (COGS). New tariffs and the removal of the de minimis exemption are tightening margins, while geopolitical instability and persistent supply chain disruptions are creating additional fulfillment challenges. Despite these headwinds, there’s a glimmer of hope for retailers and their delivery partners: the next generation of consumers.
The Youth Advantage
Retailers have a strategic growth opportunity in younger consumers—namely, Gen Z and younger Millennials aged 18–35. These digital natives are steeped in the online shopping experience and are expected to account for nearly 20% of global spending by 2030. According Descartes’ 2025 study How Smarter Delivery Wins Younger Consumers as Online Buying Slows, this age group has driven the most growth in ecommerce over the past year. While 18% of all consumers reported cutting back on spending, 43% of under-35s actually increased their online purchases. Furthermore, 44% of this group now buys online at least every two weeks, up from 33% in 2024.
Great Expectations
This cohort doesn’t just buy more—they also expect more. Under-35 consumers bring high expectations to the online shopping and delivery experience. Key priorities include delivery cost (71%), security (77%), and robust tracking (72%). Like older shoppers, they want timely deliveries in good condition and with straightforward return processes. Another factor that sets them apart is a heightened focus on sustainable delivery. While only 9% of all respondents cite environmentally unfriendly deliveries as a major concern, 40% of under-35s want sustainable delivery options—compared to just 23% of those over 65.
Delivery Disconnect
Despite improvements in fulfillment, many e-commerce businesses still struggle to meet younger consumers’ standards. The Descartes study reveals persistent dissatisfaction among this demographic. Only 11% of under-35s are consistently satisfied with their delivery experience—half the satisfaction level of over-65s. Alarmingly, 79% of under-35s experienced at least one delivery issue in three months, compared to 66% of all consumers and just 53% of over-65s.
Common issues include late or failed deliveries, damaged goods, and packages left in unsecured locations—all of which last mile software solutions can help address. These issues not only undermine the customer experience, they also erode brand trust, spike customer acquisition costs, and jeopardize long-term profitability.
Consequences of Mediocre Delivery
The impact of poor delivery experiences is especially severe with younger shoppers, who are more likely to retaliate. While 21% of under-35s reported they stopped purchasing from a retailer after a poor delivery experience, 79% said they took some form of action. This includes warning friends and family (20%) or airing grievances on social media (15%). By comparison, only 7% and 6% of over-65s, respectively, engaged in these behaviors. In today’s digital-first world, such actions can significantly damage brand reputation and future revenue.
Tailoring Delivery for Loyalty and Growth
For retailers, the message is clear: improving the delivery experience is essential, and the under-35 demographic represents both a challenge and a lifeline. By leveraging leading last-mile home delivery technology, companies are better equipped to provide younger consumers with delivery flexibility, reliability, and personalization. Many under-35s are less concerned with speed and more focused on cost (28%), precise delivery windows (18%), or sustainability (14%). Retailers that can accommodate these preferences—offering low-cost, reliably timed, or eco-friendly deliveries—will stand out. By tailoring delivery services to meet the expectations of these consumers, ecommerce businesses can build stronger brand loyalty, reduce churn, and enhance customer lifetime value—ultimately turning a slowing market into an opportunity for competitive advantage.
By Johannes Panzer, Head of Global Ecommerce Marketing at Descartes
The post Differentiating Home Delivery: The Gen Z Factor appeared first on Logistics Viewpoints.
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Knowing that a shipment will arrive six hours late is information. Knowing it early enough to reschedule labor, protect a customer commitment, avoid detention, or change an inventory decision is economic value.
That distinction is becoming central to the logistics visibility market. The earlier argument that exceptions are becoming the real unit of work explains why visibility economics depend less on event volume than on whether the organization can convert important events into timely resolution.
The first era of visibility was largely about answering a basic question: Where is my shipment? The next era is about a harder question: What should I do because its state has changed?
Visibility Is Not the Outcome
Location and status data can be valuable, but they are intermediate products. A business does not earn a return because a dot moved across a map more accurately. The return appears when information changes an operational decision. A useful way to think about visibility is as a chain: signal -> interpretation -> decision -> intervention -> economic outcome. If any link is missing, much of the potential value disappears.
A Signal Has to Arrive Inside the Decision Window
Timing matters.
A delay discovered after the customer has already missed production is history. The same delay identified early enough to expedite an alternate shipment may be actionable. An ETA update received after warehouse labor has reported for a shift may have less value than the same update received while the schedule can still be changed.
This means visibility quality is not only about accuracy. It is about whether the signal arrives with enough lead time to support an intervention.
Not Every Exception Deserves Attention
As visibility improves, organizations often discover a new problem: too many exceptions. A network with thousands of shipments will always contain delays, deviations, missed scans, changing ETAs, and incomplete data. If every deviation creates an alert, planners become the bottleneck. The more important capability is prioritization.
Which late shipment threatens a high-value order? Which delay creates a stockout? Which container risks demurrage? Which arrival change will disrupt a dock schedule? Which event is likely to self-correct without intervention?
Visibility becomes intelligence when the system can distinguish operational consequence from mere deviation.
ETA Is a Decision Input
Estimated time of arrival is a good example of how the economics are changing. ETA was once primarily a customer-service or tracking metric. Increasingly it can influence warehouse scheduling, yard planning, labor, inventory, customer promises, and downstream transportation. That makes ETA a shared operating variable.
The value increases when the prediction is connected to the systems that can respond. A changing ETA that remains trapped in a visibility dashboard creates less value than one that can trigger a workflow or decision elsewhere.
Dwell, Detention, and Demurrage Make the Economics Visible
Some visibility use cases have direct financial consequences. Better awareness of arrival, dwell, free-time windows, and container status can help organizations manage detention and demurrage exposure. Yard visibility can reduce unnecessary trailer search and moves. Earlier exception detection can protect delivery appointments and reduce costly service recovery. These cases make an important point: visibility value is often realized outside the visibility platform itself.
More Visibility Can Increase Work
This is the uncomfortable side of digital transparency. If a company exposes ten times as many events but does not improve prioritization or workflow, it may create ten times as many things for people to inspect. The result can be an expensive monitoring layer sitting on top of the same manual decision process.
That is why visibility and autonomous exception management are converging. The system must increasingly help decide which events require action, assemble context, recommend a response, and automate routine resolution where appropriate.
Measure Intervention, Not Just Coverage
Visibility programs are often measured by tracking coverage, data completeness, ETA accuracy, or number of connected carriers. Those are necessary operating metrics, but they do not fully describe business value.
Organizations should also ask: How many material exceptions were identified early enough to act? How quickly were they resolved? How often did intervention protect service or avoid cost? How many alerts required no useful action? How much planner time was consumed per exception?
Those measures connect visibility to economics.
The Market Is Moving Toward Action
This shift has strategic implications for technology providers. Pure visibility is becoming less differentiated as location and event data become more widely available. The higher-value layer is interpretation and action: understanding what an event means to a specific operation and helping execute the appropriate response.
That pushes visibility platforms toward orchestration, workflow, decision intelligence, and AI. It also pushes TMS, WMS, and other execution systems toward richer external event awareness.
The Bottleneck Moves
For years, logistics organizations complained that they could not make better decisions because they could not see what was happening. Increasingly, they can see more.
The bottleneck is moving.
When a network can identify exceptions continuously, the constraint becomes the speed and quality with which the organization can interpret and resolve them. That is precisely the environment in which AI agents become interesting—not because logistics needs another conversational interface, but because it needs more capacity to do operational work.
Related Logistics Viewpoints research
The New Architecture of Logistics
Systems Engineering in Logistics
2026 Autonomous Exception Management Market Map
The Economics of Decision Latency
Previous in this series: Transportation Is Becoming Computational
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The post The New Economics of Logistics Visibility appeared first on Logistics Viewpoints.
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o9 Solutions Uses a Knowledge Graph to Connect Supply Chain Decisions
Published
17 heures agoon
5 octobre 2026By
Supply chain decision-making is difficult partly because the relevant information is distributed across products, locations, suppliers, orders, capacities, policies, and external events. A system may have access to all of those records and still struggle to understand the relationships among them quickly enough to support a consequential decision.
o9 Solutions addresses that problem through its Digital Brain architecture, including an enterprise knowledge graph and in-memory modeling designed to connect demand, supply, inventory, planning, and operating context. That semantic layer is important because it gives analytics and AI a structured representation of how supply chain entities relate to one another rather than treating the environment as a collection of independent tables and documents.
The company combines this architecture with integrated planning, optimization, scenario modeling, machine learning, and human oversight. The strategic direction is toward a continuous decision environment where changes can be interpreted quickly, alternatives can be modeled, and recommendations can be traced back to the assumptions, events, and constraints that produced them.
As with any broad planning and intelligence platform, the value depends on implementation quality. Knowledge models need strong data governance, entity resolution, process ownership, and clear decision rights. A sophisticated model of the supply chain is useful only if the organization can keep it current and use it consistently in real operating workflows.
o9 Solutions appears in the Logistics Viewpoints Supply Chain Decision Intelligence MarketMap and Autonomous Exception Management MarketMap. The two MarketMaps highlight the relationship between integrated decision intelligence and the faster exception-response capabilities now developing around it.
The post o9 Solutions Uses a Knowledge Graph to Connect Supply Chain Decisions appeared first on Logistics Viewpoints.
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AI Will Not Transform the Supply Chain Until the Architecture Around It Catches Up
Published
20 heures agoon
5 octobre 2026By
Executive thesis. The model is becoming the least durable layer of the AI stack. Sustainable advantage will come from the operating architecture around AI: authoritative context, governed tools, permissions, observability, and connection to enterprise workflows.
The model is only one component
Supply chain AI discussions often begin with model capability: prediction accuracy, reasoning quality, computer vision performance, or the fluency of a generative system. Those capabilities matter, but operational value depends on everything around the model. The system still needs authoritative context, enterprise tools, permissions, workflow, observability, and a reliable path from recommendation to action.
Different AI patterns solve different problems
Prediction, optimization, generative AI, vision, and agents should not be treated as interchangeable technologies. Forecasting demand, selecting a route, extracting information from a document, interpreting an image, and executing a multi-step workflow require different evidence, control, and performance measures. A mature architecture starts with the decision or task and chooses the AI pattern that fits it.
Context is the operating fuel
An AI system can produce a plausible answer while using stale or incomplete operational context. In logistics, that can be dangerous because the truth may reside across orders, inventory, rates, carrier status, warehouse state, supplier records, and policy documents. Retrieval, master data, identity resolution, and system access therefore become part of the AI architecture, not secondary data-engineering concerns.
Tool access turns intelligence into consequence
The moment an AI system can create a shipment, change an order, contact a carrier, release inventory, or approve an exception, governance becomes an operational requirement. Tool permissions, financial limits, approval gates, idempotency, retries, and rollback are the mechanisms that separate an interesting demonstration from a dependable production workflow.
Measure workflow performance
A fluent response is not the right success metric for operational AI. Supply chain leaders should measure decision latency, manual context gathering, exception closure, override behavior, error recovery, tool failure, and the business outcome being improved. That measurement discipline also creates a rational basis for expanding autonomy as evidence accumulates.
The Logistics Viewpoints AI in Logistics: Use Cases, Architecture, and Implementation Guide separates the major AI patterns and connects them to data, tools, governance, workflow, observability, and ROI—the architecture required to move from model capability to operating value.
Executive implication
AI strategy should separate model selection from control architecture and measure value through workflow performance, decision quality, and operational outcomes.
Go deeper: provides the durable buyer, architecture, and implementation reference for this topic. AI & Advanced Analytics connects this analysis to the broader Logistics Viewpoints research architecture.
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The post AI Will Not Transform the Supply Chain Until the Architecture Around It Catches Up appeared first on Logistics Viewpoints.
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