Weather and How It Affects the Supply Chain

Prepare for the unexpected. A saying in business that is all too easy to roll off the tongue but much harder to execute. With the winter months in full force, extreme weather conditions have shown their ability to agitate and disrupt even the strongest of supply chains. Though weather conditions cannot be controlled, businesses must be prepared with the strategies to counter the inevitability of storms in order to effectively plan and respond to disruptions in the supply chain. Understanding how major weather events, such as hurricanes and blizzards, impact consumer habits, supply and distribution can help you manage the unavoidable.

Consumer demand.

It happens every year. The news of the first snow storm hits and all of a sudden, all the bread and milk is flying off the shelves of the grocery store. Everyone wants to be prepared to stay indoors and everyone is flocking to the grocery store at the same time. The store starts looking bare, the checkout lines are a mile long and what do you know, they’re out of toilet paper again. During such times of inclement weather, fluctuations in consumer demand can cause many industries and processes to be negatively impacted. Some sectors, such as grocery stores and c-stores, find themselves struggling to maintain inventory levels to meet consumer needs. Depleting supplies creates challenges as retailers scramble to adhere to changes in consumer demand.

Delivery issues.

Extreme weather has a snowball effect throughout many parts of the supply chain. Retailers may find themselves unable to fulfill orders to end-stage consumers as weather conditions can cause delivery difficulties for suppliers. Often times, traditional forms of transportation become impossible and companies are not able to ship something and get it where it needs to be in a timely manner. As weather slows the transportation of goods and producers slow down operations, the lead time shippers are able to offer clients is greatly reduced and retailers are left unable to restock their shelves to meet consumer demand. Suppliers are further impacted as extreme weather can cause stock to build up in warehouses due to the massive delay of shipments and there is a decrease in overall capital throughout the entire supply chain.

Tips to mitigate risk.

It can be difficult to avoid the impact of inhospitable weather conditions throughout the supply chain. A disruption to one part of the supply line can be felt throughout the entire system but there are ways to alleviate some of these weather-based supply chain difficulties. For starters, both retailers and producers should be actively doing their part to keep an eye on the weather and forecast planning accordingly. Understanding the impact of weather on the supply chain is a critical step for distributors to plan proactive deliveries and retailers can be provisioned enough to meet the increase in consumer demand. When you track potential disruptions, you are better able to preemptively address them.

To further circumvent any extreme weather concerns, lines of communication should be kept open within all positions of the supply chain. Not clearly addressing realistic fulfillment expectations or consumer needs can prompt unforeseen challenges and cause major setbacks. Understand the role and examine the performance of everyone in your supply chain to better plan for weather-driven impacts. By working together to build action plans during an extreme weather event, you will be better equipped to face disruptions to the supply chain that may occur.