For food and beverage companies, adverse weather can have a major impact on supply chains. A series of major storms can delay production, and a bad year for crop growth can cause companies to seek alternative options quickly. As the intensity and scope of adverse weather increase, these supply chains are likely to experience even more serious issues. Learn how extreme weather and climate change affect food and beverage supply chains and what companies can do to lessen the impact.
Extreme Weather Can Affect Every Step of the Supply Chain
Over the years, many food and beverage companies have grown accustomed to handling the minor supply chain hiccups that result from weather-related events, such as a major blizzard shutting down portions of the interstate and delaying deliveries. In more recent years, however, shifts in regional climate patterns have made it increasingly difficult for companies to anticipate or plan for supply chain issues.
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As Environmental Leader reports, an extended drought in Egypt led the country to put an end to rice exports, leaving Kellogg’s scrambling to find another source for its breakfast cereal supply chain. Other global food companies, such as Mars Incorporated and PepsiCo, have also been vocal about how climate change has caused crop shortages, ultimately affecting the companies’ predictability.
Food and Beverage Companies Need Contingency Plans
For local and global food and beverage companies alike, a contingency plan is necessary. Most companies will find it helpful to start by identifying vulnerabilities in their supply chains in order to understand whether their greatest concerns come from sourcing, production, or delivery. From there, food and beverage companies can develop detailed contingency plans that outline alternative courses of action in the event of a supply chain disruption. As extreme weather continues to make an impact and conditions change, companies should engage in ongoing conversations to keep their contingency plans current.
Alternative Transportation Options May Become Necessary
Prior to 2017, the Environmental Protection Agency outlined the impact that climate change may have on virtually every form of transportation in the United States. Although it’s difficult to anticipate exactly when extreme weather will render a major roadway unusable or take a primary railway offline, existing transportation infrastructure may not be designed to withstand climate change.
Supply chains that depend exclusively on trucking, rail, or air should consider alternative methods in their contingency plans. Companies should also consider adopting alternative routes and assess how these may impact each step of the supply chain.
Advanced Technology May Provide Answers
Most food and beverage companies rely on elaborate databases and integrated supply chain software to keep operations running smoothly. However, some programs may not prove effective in emergency situations or in the event of extended extreme weather. Before serious issues impact their supply chains, companies should evaluate the applications they’ve adopted to ensure that the software can guide companies through both isolated weather events and long-term climate change. Many companies may find it necessary to upgrade to more robust software that can help them weather storms both large and small.
For food and beverage companies around the globe, preparedness is essential. Taking stock of the risks, assessing alternative options, and adopting advanced technology can lessen the impact of extreme weather on supply chains.[/show_to]
