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Differentiating Home Delivery: The Gen Z Factor

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Differentiating Home Delivery: The Gen Z Factor

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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The Autonomous Logistics Network

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The autonomous logistics network will not arrive as a warehouse with no people or a fleet with no drivers. It will not be switched on one morning after a company installs an AI platform.

It will emerge incrementally as more routine logistics decisions stop waiting for human coordination. The path toward autonomy therefore depends on the discipline described in Engineer AI Into the Decision: authority, context, optimization, and control have to be designed together.

That is the logical conclusion of the architecture explored throughout this series. Physical assets become more observable. Execution systems become more connected. Visibility moves toward interpretation. Orchestration coordinates decisions across domains. AI handles increasingly complex information. Agents perform bounded work. Automation executes more physical tasks.

Autonomy is not a destination. It is a spectrum of delegated operational authority.

The Physical Layer

Everything begins with the physical network: trucks, trailers, containers, warehouses, docks, robots, conveyors, roads, ports, and people. These assets create the hard constraints of logistics. Capacity, distance, time, labor, infrastructure, and physics remain real regardless of how sophisticated the software becomes.

The autonomous network therefore does not replace the physical layer. It uses information and decision-making to employ that layer more effectively.

The Execution Layer

TMS, WMS, YMS, OMS, warehouse execution and control systems, and global trade applications remain the mechanisms through which much of logistics work is planned and executed. The autonomous architecture does not require one system to replace them all.

It requires those systems to expose enough state and enough controlled action for decisions to move across boundaries. A transportation event must be able to influence warehouse execution. A warehouse constraint must be able to influence transportation. A trade event must be able to influence order and inventory decisions.

The Observation Layer

Connected vehicles, sensors, telematics, RFID, computer vision, equipment data, carrier feeds, and enterprise events create a continuously changing digital picture of the operation.

This layer answers the first question of autonomy: What is happening?

Its weakness is uncertainty. Data can be incomplete, delayed, or wrong. Autonomous systems therefore need not only observations but confidence in those observations.

The Intelligence Layer

Optimization, analytics, simulation, digital twins, machine learning, and generative AI interpret the operating state.

This layer asks: What does the current state mean, what is likely to happen next, and what alternatives are feasible?

AI expands the amount of context that software can process, particularly when decisions require information from documents, messages, policies, and multiple enterprise systems rather than a single structured database.

The Decision and Orchestration Layer

This is where autonomy becomes operational. The system must determine what decision is required, which objective matters, what constraints apply, who or what has authority, and where the action should be executed. Some decisions can be automatic. Some can be prepared by software and approved by a person. Some should remain entirely human.

The sophistication of the autonomous network is not measured by how many humans it removes. It is measured by how intelligently it allocates authority.

Autonomy Is a Spectrum

A useful way to think about logistics autonomy is in levels. At one end, software observes and informs. Next, it recommends. Then it prepares actions for approval. After that, it can execute bounded decisions automatically. At higher levels, multiple systems or agents can coordinate a sequence of actions with human supervision focused on exceptions and policy.

Different logistics decisions will sit at different points on this spectrum. A routine appointment adjustment may become highly automated. A major customer-service trade-off may remain human. A warehouse robot can navigate autonomously while a facility redesign remains a strategic decision. There is no reason every decision should reach the same level of autonomy.

Humans Move Toward Governance and Ambiguity

As routine coordination becomes automated, human work changes. People remain essential where objectives conflict, relationships matter, information is uncertain, consequences are high, or the situation falls outside established policy. They also design the system itself: objectives, constraints, escalation rules, decision rights, performance measures, and acceptable risk. The human role moves from being inside every transaction toward governing the operating model and handling the exceptions machines are not authorized or able to resolve.

The economic case is broader than labor reduction. Selective autonomy can reduce decision latency, increase planner capacity, improve asset utilization, shorten exception queues, stabilize service, and allow operations to respond continuously rather than only when people are available.

It can also create new risks. Automated decisions can propagate mistakes faster. Connected systems increase cyber exposure. Poor data can create confident but wrong actions. Local optimization can become automated local optimization. That is why governance, auditability, and architecture matter as much as model capability.

The Architecture Comes Back Together

Across this series, the individual technologies have been less important than the relationships between them.

Transportation and warehousing are converging as an execution problem. A logistics control layer is emerging between events and action. Warehouses are becoming orchestrated machines. Transportation is becoming computational. Visibility is moving from tracking toward intervention. AI agents are beginning to perform bounded logistics work. Physical assets are becoming machine-readable. Decision velocity is becoming a form of capacity.

Together, these changes describe a new logistics architecture. It is not a single product category. It is an operating model in which the physical and digital systems of logistics are increasingly connected through continuous state, intelligence, decision rights, and execution.

The New Basis of Logistics Advantage

For decades, logistics advantage has depended on network design, carrier relationships, facility location, process discipline, labor, scale, and execution excellence. Those factors will remain important. But another dimension is being added.

Two companies may have similar warehouses, similar transportation capacity, and access to similar technology. The better-performing network may be the one that recognizes change sooner, understands consequences more accurately, decides with less friction, and executes before the intervention window closes. That is the emerging competitive loop:

sense -> understand -> decide -> execute -> learn. The autonomous logistics network is ultimately not about removing people from logistics. It is about removing unnecessary latency from logistics.

The organizations that do that well will not simply have more automation. They will have a logistics system capable of turning information into coordinated physical action at a speed and scale that traditional functional management could not achieve. That is the new architecture of logistics.

Across the series, the individual technologies matter less than the relationships between them. Transportation and warehousing converge as an execution problem. A control layer emerges between events and action. Warehouses become orchestrated cyber-physical systems. Transportation becomes continuously computational. Visibility moves from tracking toward intervention. AI agents begin to perform bounded work. Physical assets become increasingly machine-readable. Decision velocity becomes a multiplier on physical capacity.

Together, these changes describe a logistics operating model built around continuous state, intelligence, decision rights, orchestration, and execution. The objective is not autonomy for its own sake. It is the disciplined removal of unnecessary latency from logistics while preserving human judgment where consequences, ambiguity, relationships, or policy require it.

Logistics Viewpoints examines the technologies, operating models, and market developments shaping transportation, warehousing, fulfillment, automation, and logistics execution. This client edition consolidates the complete New Architecture of Logistics series into a single executive document.

Related Logistics Viewpoints research

The New Architecture of Logistics
Systems Engineering in Logistics
2026 Supply Chain Decision Intelligence Market Map
Amazon Launches « Supply Chain Services » Leveraging its Global Logistics Network
Previous in this series: The Decision Bottleneck Is Becoming a Logistics Capacity Constraint

Request The New Architecture of Logistics Client Edition

If your organization is assessing connected execution, orchestration, AI, observability, decision velocity, or selective autonomy, I would be glad to provide the complete client edition and discuss the implications for your logistics operating model and technology architecture.

Request the client edition

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Managing 3PL Ramp-Ups: Why Digital Workforce Readiness Matters as Much as Physical Automation

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Managing 3pl Ramp Ups: Why Digital Workforce Readiness Matters As Much As Physical Automation

Third-party logistics (3PL) providers live in a world of constant change. New customer contracts, seasonal peaks, facility expansions, and labor fluctuations can require operations to scale from dozens to hundreds of associates in a matter of weeks. While much attention is often paid to warehouse automation and material handling systems, workforce ramp-up remains one of the biggest determinants of whether a new operation succeeds or struggles.

The challenge is not simply finding labor. It is enabling new employees to become productive, compliant, and engaged as quickly as possible. As labor markets become increasingly diverse and warehouse networks more complex, technologies such as smart access control systems and learning management systems (LMS) are emerging as important tools for accelerating operational readiness.

The Hidden Cost of Slow Ramp-Ups

For many 3PLs, the launch phase of a new customer operation follows a familiar pattern. Hundreds of workers must complete onboarding, safety training, facility orientation, and role-specific instruction before they can contribute at expected productivity levels. The consequences of delays can be significant. When associates spend excessive time waiting for facility access credentials, searching for training materials, or completing manual onboarding processes, productivity targets become difficult to achieve. Supervisors are pulled away from operational responsibilities to handle administrative tasks, while customer service levels may suffer during the critical startup period.

In today’s competitive logistics environment, customers expect rapid implementation timelines and near-immediate performance. As a result, workforce readiness has become a strategic differentiator rather than simply an HR function.

Reimagining Access Management

One area that is often overlooked during warehouse start-ups is facility access. Traditional onboarding processes frequently require physical badge creation, manual verification processes, paperwork reviews, and multiple handoffs before an employee can enter operational areas. These steps may appear minor individually, but they create friction when multiplied across hundreds of workers. Smart access platforms can streamline the process by digitizing credential management and automating approval workflows. Workers can complete portions of the onboarding process before arriving onsite, while managers gain visibility into who has completed required certifications and who is authorized to enter specific work areas.

For organizations such as DHL Supply Chain and other large-scale logistics providers, reducing onboarding bottlenecks can translate directly into faster workforce deployment. Instead of spending the first few days of employment navigating administrative processes, associates can begin productive work sooner. The value extends beyond speed. Digital access systems also improve security, compliance tracking, and audit readiness, all of which become increasingly important as warehouse networks grow.

Training at Scale Requires a Different Approach

Access alone does not create productivity. Employees must also understand processes, safety standards, technology systems, and customer requirements. Historically, warehouse training relied heavily on classroom sessions, printed documentation, and shadowing experienced workers. Learning management systems offer a more structured and repeatable framework. Training content can be standardized across facilities while still allowing customization for specific customer operations. Associates can complete learning modules before their first shift, reducing classroom time and accelerating readiness. For multinational logistics providers, LMS platforms also provide advantages in multilingual environments. When training becomes digital, organizations gain visibility into completion rates, certification status, knowledge retention, and workforce readiness metrics.

Combining Smart Access and LMS Technology

The greatest benefit may come when smart access and learning platforms work together. Before day one, an employee can complete required compliance training through the LMS. Once training requirements are met, facility access permissions are automatically activated. Upon arrival, the worker can immediately access authorized areas and begin role-specific activities. This integrated approach removes administrative delays and reduces the burden on managers, trainers, and HR teams.

The ROI of Faster Workforce Readiness

Consider a 3PL that hires 500 employees during a major customer launch. If improved onboarding and digital training reduce ramp-up time by just two days per employee, the organization gains 1,000 labor days of additional productive capacity. Assuming fully burdened labor costs of $200 per day, that represents approximately $200,000 in productivity value during the startup phase alone.

Looking Ahead

Warehouse automation discussions often focus on robotics and automated systems. However, even highly automated facilities depend on people. As customer implementation timelines continue to shrink, 3PL providers will need faster and more scalable methods for preparing their workforce. In an industry where speed is increasingly synonymous with competitiveness, accelerating workforce readiness may become one of the most valuable forms of automation available.

The post Managing 3PL Ramp-Ups: Why Digital Workforce Readiness Matters as Much as Physical Automation appeared first on Logistics Viewpoints.

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The AI Bubble Meets the Supply Chain: Where Is the Productivity?

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When Ken Griffin, founder of Citadel, warned this week that financial bubbles almost certainly exist within artificial intelligence, Wall Street took notice. But the more interesting part of his argument was directed at corporate America. Companies are opening their bills from OpenAI and Anthropic and asking whether the technology is producing enough productivity to justify the cost. For transportation, warehousing, and supply chain executives, that is a familiar question.

Speaking at Citadel’s Future of Global Markets Conference in New York on October 20, Griffin described an uneven ability among companies to extract value from AI. Yet he also acknowledged that financial bubbles frequently accompany technological revolutions. Both observations can be correct. AI may be attracting more investment than its economics can currently support while becoming increasingly valuable to the businesses using it.

There is a further possibility worth considering: an AI infrastructure correction could ultimately benefit supply chain operators if excess computing capacity and greater competition make intelligent software less expensive.

The Spending Is Real. The Returns Are Less Certain.

The scale of spending is remarkable. Reuters, citing Anthropic’s draft IPO prospectus, reported an $80.7 billion net loss for the first half of 2026, including a $72 billion noncash accounting charge tied to convertible financing instruments. The company also disclosed commitments of at least $518 billion over a decade for cloud services, computing, and infrastructure. The headline loss should not be confused with an equivalent cash operating loss, but the infrastructure obligations are substantial.

This matters beyond Silicon Valley because the cost and availability of AI models influence the economics of enterprise software. Across transportation management systems (TMS), warehouse management systems (WMS), and supply chain planning (SCP), suppliers are introducing conversational interfaces, predictive tools, intelligent exception management, and autonomous agents. Some capabilities are valuable today. Others remain demonstrations of what may eventually be possible.

For technology buyers, the challenge is separating a useful feature from a financial return. A sophisticated model does not, by itself, move a shipment, replenish inventory, or clear a warehouse backlog. The value appears when better information changes an operating decision and that decision improves performance.

Supply Chain Productivity Is Measured in Operations

Consider a transportation planner who uses AI to compare carriers in two minutes rather than twenty. That is a genuine improvement in task efficiency. But if freight expense, equipment utilization, staffing, and on-time performance do not change, the impact on the business may be modest. The more consequential application is one that identifies an impending service failure, evaluates alternatives, and helps prevent an expensive expedite or missed delivery.

Warehousing presents a similar distinction. AI can recommend slotting changes, anticipate labor requirements, or detect congestion. The measures that matter are throughput, pick productivity, order accuracy, labor cost, and equipment utilization. Better recommendations matter only if they can be executed in a working facility, with its actual constraints, workforce, and automation equipment.

Supply chain planning adds another layer. A more accurate forecast is useful, but its real value depends on whether it changes purchasing, production, capacity, or inventory decisions. If planning cycles and departmental incentives remain unchanged, improved analytics may produce relatively little financial benefit.

I would distinguish between faster individual tasks, more productive operating workflows, and measurable enterprise returns. They are related, but not interchangeable. Supply chain technology should ultimately be judged by its contribution to enterprise performance, with attention to total implementation cost, exception handling, and the human work still required.

The Competitive Advantage Is Moving Beyond the Model

ARC Advisory Group’s 2026 Warehouse Management Systems MarketMap examines a market in which WMS is extending beyond transactional inventory management toward coordination of labor, robotics, automation, and operational decisions. The important differences among suppliers concern execution depth, interoperability, architecture, and fit with the operating environment, not simply the number of AI features on a demonstration slide.

ARC’s Supply Chain Decision Intelligence MarketMap addresses a related development across planning and execution. It focuses on the connection between data, analytics, optimization, workflow orchestration, and enterprise systems. Visibility alone does not resolve a disruption. A decision intelligence capability must help determine what to do and connect that recommendation to an authorized action.

Imagine an inbound shipment is delayed. A visibility application identifies the problem; a planning system estimates the inventory exposure; a TMS considers alternatives; and a warehouse adjusts receiving capacity. The greatest value comes from coordinating those steps, not from placing a separate AI assistant in each application.

This is also a challenge for software suppliers. As foundation models become more accessible, conversational interfaces and document summaries may stop commanding a premium. Durable differentiation will increasingly come from operational expertise, trusted data, integrated workflows, reliable execution, and measurable customer outcomes. AI can strengthen a TMS, WMS, or planning platform, but it cannot substitute for those capabilities.

What Happens When Intelligence Gets Cheaper?

Griffin offered a useful analogy: computing chips resemble airline seats because idle capacity has relatively low marginal operating cost. Once the infrastructure exists, suppliers have an incentive to sell unused capacity, even at prices below earlier expectations. If AI computing supply outpaces demand, prices could fall sharply.

The telecommunications buildout around 2000 offers a precedent. Excess fiber capacity contributed to severe investor losses while eventually making communications cheaper for users. The same distinction could emerge in AI. A disappointing return for infrastructure investors does not necessarily imply disappointing economics for customers purchasing computing services.

For logistics, falling model costs could expand the range of viable applications. An AI workflow economical for a few hundred high-value planning decisions might become practical for thousands of routine shipment, warehouse, or procurement decisions. Smaller operators could gain access to capabilities that currently require substantial technology budgets.

That outcome is not guaranteed. Integration, data preparation, security, testing, governance, and human oversight still cost money. More complex AI reasoning can also consume more computing resources. But the direction is important: cheaper intelligence creates an opportunity to embed decision support into more of the daily operating process, provided that suppliers do not simply replace lower model costs with higher software fees.

There is risk on the other side. A financing correction could delay data center construction, strain AI providers, and disrupt the roadmaps of software suppliers dependent on them. Buyers should therefore evaluate interoperability, vendor resilience, and the ability to change underlying models without rebuilding an entire workflow.

The Test Is the Operating Statement

Supply chain executives do not need to predict the top of the AI market. They need to establish baselines, measure the full cost of implementation, and identify the operating outcomes that must improve. A transportation application should lower freight or exception costs. A warehouse application should improve throughput and labor performance. A planning application should deliver better inventory, capacity, or service results.

Griffin may be right about the bubble, and AI may still become an indispensable operating capability. Indeed, a correction that hurts the companies financing compute could benefit those purchasing it.

Wall Street will determine whether AI was a financial bubble. Supply chain operators will determine whether it becomes a productivity revolution.

The post The AI Bubble Meets the Supply Chain: Where Is the Productivity? appeared first on Logistics Viewpoints.

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