Research data suggests that weather can create 70% disruptions in the financial and operating performance of businesses worldwide.
Are you thinking about how that happens? This article delves a little deeper to put forth the connections between the two. The business can also take steps to harness the power of the changing weather conditions to maximize the gains.
You can find out about tomorrow’s weather forecast from the online sites in the short term. It can help prepare for any forecasted anomaly or change in the weather. For example, if the forecast says it can rain tomorrow for a few hours, you can make arrangements to brace it. Think of the situation if you were to make your plans being ‘weather-blind.’
But how do you gauge the impact on long-term business operations? What are the corrective steps that you can take to mitigate business risk?
Logistics and Manufacturing
The knowledge of rainfall can have a significant impact on companies that are operating in the manufacturing and logistics sectors. The availability of prior information about the intensity, quantity, and timing of rains can help them plan their supply chain more efficiently.
The power of adequate preparation and accurate predictions can help mitigate the effect of erratic weather. It can be, say, for example, the transportation of goods via the roads that flood upon heavy rains.
The manufacturing companies have the option to inform the clients or stockpile when the manufacturing is late due to bad weather conditions. It can help counter the delivery delays. It can thereby ensure a headache-free operation with a higher output due to increased efficiency.
Fast Moving Consumer Goods
The multi-national fast moving consumer goods or FMCG companies gauge the exact impact of the weather on business. They keep note of the costs and losses in productivity due to unmanageable weather conditions.
The information about accurate weather conditions acts as a stabilizing tool for the supply chain. It also aids in the maintenance of the quality and quantity of the produce.
These can ensure the FMCG companies scale their profitability by the maintenance of standards.
Agriculture is such a sector that sees the most impact by fluctuating weather conditions. A weather forecast allows them to plan their equipment hiring, tilling, planting, or other jobs more efficiently.
It can also help the farmers to plan the timing of their inputs that alter productivity. These can include the timing and duration of irrigation, the use of fertilizers, or pesticides, etc.
With the advancements in technology, some companies are helping provide solutions to the farmers that face problems in tracking the weather properly. Also, various allied service companies help take care of the plants that have exposure to harsh conditions.
The weather is one of the most important determining factors for the profitability of an agricultural business. Therefore, farmers can subscribe to data that helps chart such information and take steps accordingly.
Property and Equipment
Intense weather conditions like heavy storms can have a significant impact on the property and equipment. The plant managers or the custodians responsible for the asset management can take steps to protect the equipment if they have prior knowledge of such an inbound calamity.
They can also plan to operate the plant if the forecast projects the storm to miss the location. Such normal functioning of the plant can ensure to curb any losses to the business due to operational seizure. Therefore the availability of accurate weather information can help mitigate risk and increase productivity.
Cancelations or delays of trips can impact both the customers as well as the service providers, in this case, which is the transportation companies. Delays aiding to change in weather conditions can have a detrimental impact on the business.
However, the availability of accurate weather forecasts can help the transportation companies, as well as the airlines, to have better schedules. This aspect can increase the customer satisfaction score as they get a better user experience.
The business of everyday people also gets an impact due to weather. The stores operate depending on the forecasted weather conditions. Traders can plan their operational hours accordingly. Laundrymen can use it to plan their washing, picking, or delivery of laundry to their clients.
The list can go on, and the weather is such a vast subject to be put under the scope of a single exhaustive list. However, this article makes you aware of its impact and how you can embrace it. You can subscribe to weather forecasts to remain updated about such changes.