Using Weather Forecasts to Sharpen Regional Demand Planning
A product plan can be accurate in aggregate and wrong in the locations where inventory sits.
Last year, retailers faced unpredictable demand across the United States due to differing weather conditions. In some regions, the demand for household care products surged, while others saw significant drops. This discrepancy led to overstocked inventories in some areas and shortages in others. To address this issue, using weather forecasts to refine regional demand planning is crucial.
Seasonal outlooks can serve as early demand signals, allowing for adjustments in inventory plans before a season begins. By applying weather patterns to categories with proven sensitivity, retailers and manufacturers can make more accurate decisions and avoid costly mistakes.
Written by urgent.news from Supply Chain Brain's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
