Where once the gold standard for retail was the big brick and mortars, today it’s sited in online giant Amazon. Millennials have grown up with online accessibility to the goods and services they need. And Amazon has perfected its approach to creating an online marketplace based primarily on the response of this demographic to the platform.
Why millennials’ Amazon experience is shaping vendor selection in the arena of procurement is that they want the process involved to be as effective as what they’ve seen on Amazon. As millennials take their places in leadership tiers, pressure from them for procurement entities to conform to these new standards will only increase.
The usability standard.
If there’s one thing users love about Amazon, it’s the usability. User experience at the online retail monolith is seamless and because of that, Amazon is increasingly what people compare other buying processes to.
They’re asking repeatedly why the standards and processes used at Amazon can’t be translated to other commercial models, thus streamlining them, as well as making them more flexible and less static.
Now there’s Amazon Business, which has underlined the service’s utility for those procuring for cost reduction and profitability. With the ability to compare multiple suppliers in real time, based on criteria like price, product, shipping times and other relevant information, it’s clear how Amazon’s model could serve procurement. With this B2B model, it’s easy to find exactly what you’re looking for. You even have access to reviews of the vendors and the quality of their products.
Because of Amazon’s ability to allow buyers to compare vendors side by side, as well as to review information about them and their products, the buyer is given a huge measure of control. That changes the game.
Traditionally procurement can get bogged down in the status quo, when it comes to vendor selection. The tried and true rarely budges, except in rare instances. With the ability to compare vendors and read what other buyers say about them, buyers are given more control and more selection.
Amazon has created a level of urgency for reform in procurement which can be met with innovation in the sector, most probably driven by the insights of millennial thought leaders.
The world of the millennial.
Millennials take Amazon entirely for granted. They’re accustomed to having control in their consumer journey and being offered myriad possibilities for who to purchase with, based on the criteria most important to them.
Keep in mind that millennials are poised to become 50% of the workforce by 2020. That figure represents the coming challenge to traditional ways of doing things and it’s a challenge we should welcome. Millennials are bringing their world to the existing one and with that comes innovation and a refreshing perspective. Embracing that perspective is what will bring positive change.
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