Weather's Effect on the Supply Chain
- Published: 27 Oct 2016
With the winter weather around the corner, it is difficult to predict how the weather will be. Not only is winter weather difficult to predict but any weather during the year. Just recently, Hurricane Matthew swept through Haiti and made its way to the United States. Not only did this have mass devastation to people living in those areas, but disruptions in the supply chain. Severe weather can have impacts on the supply chain. Aspects of the supply chain that are affected by severe weather include:
- Consumer demand If there is severe weather this can impact how much you can supply to consumers. For example, in the grocery industry, there may be a surge in demand as people prepare to remain indoors, Increased product demand that can occur due to weather conditions affects the supply chain by reducing inventory and creates challenges to retailers as they rush to meet consumers’ needs. Also, severe droughts can cause a decrease in crop reduction which can create challenges in supply the demand for consumers.
- Delivery issues Severe weather conditions can make it risky and sometimes impossible to deliver their shipments to their destination. Heavy rain, high winds, snow, and ice can cause delays in product being delivered. With delays in product arrival, this can result in low inventory and can sometimes cause a surge in prices if the supply cannot meet the demand.
- Production Issues Weather cannot cause delays in product delivery but can cause issues in production. For example, for the food industry, frost or drought can cause a decrease in the amount of crop that is produced and affect crop availability. Also, there could be a shortage of raw materials due to production and this can result in a shortage of finished products.
Sometimes the weather can be unpredictable but, can impact the supply chain in many ways. Being prepared, when possible, will assist in your meeting your customers’ requirements and reduce the impacts to the supply chain.
ADLI Logistics is a third-party logistics company that provides freight shipping, warehousing and distribution solutions. For more information, call 1-877-363-7281 or fill out our contact form!