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Weather Affecting Supply Chains - What You Need To Know

Posted by [email protected] on May. 12, 2020  /  Subscribe 0

Supply chain managers must closely monitor weather forecasting through weather services as part of proper supply chain risk management. Whether a supply chain is shipping within the United States or beyond, knowing the climate and weather patterns of any location that a supply chain interacts with is important for the overall success of an operation. Read on to learn more about the weather affecting supply chains and the steps that can be taken to ensure smooth processes despite setbacks by uncontrollable variables such as extreme weather conditions and natural disasters.

How Does Extreme Weather Affect Business?

Bad weather happens all the time and does not usually affect things such as supply and demand and regular operations. Even extreme weather can be handled with the correct protocols in place. For example, a location with a climate that experiences high wind speeds will be accounted for and steps can be taken to ensure that processes remain smooth. Likewise, supply chain operations in locations such as California or Japan that see earthquakes on the regular are prepared for such events.

However, unexpected extreme weather can affect not only supply and demand but the entire shipping process. For example, a particularly bad winter storm can not only block roads and delay shipping, but it can cause a short term dip in the economy. People may be taking time off work and making less money, thus less money is being spent on products, thus causing less demand. This can lead to a surplus of goods available, which is not good for business. 

How Does Weather Affect Demand?

On the flip side, there may be increased demand due to weather for one type of product, leading to a shortage of goods. Suppliers must strive to keep a good relationship with those they do business with, so when there is a shortage, this can damage not only the economy but the relationships between companies. It is important for supply chain professionals to pay attention to weather data, as unexpected weather events affect the supply and product demand. Routine forecasting training is important in order to be one step ahead of potential natural disasters. In supply chain management, forecasting is the act of predicting demand, supply, and pricing within an industry.

Start a Promising Career in Supply Chain Management

Are you an organized person and an effective communicator? These are top traits of a successful supply chain manager, and with the right tools you could be on your way to a rewarding and well-paying career in the supply chain field. To get started, visit www.apics-houston.org and browse our selection of certifications available! To learn more about how supply chain companies handle unexpected events, read our blog about why forecasting is important in supply chain management.

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