7 Trends of companies
that are successful in handling weather extremes
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7 Trends of companies that are successful in handling weather extremes |
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Weather extremes
the planning cycle How the threat of weather extremes can effect the length of the planning cycle in marketing and promotions - you always have to have the ability to change your plans and bring on board a new promotions scenario when you are vulnerable to problems in the supply chain due to bad weather 1 min 40 sec.
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, | As part of the
preparation for the 2005
ROB TV segment with Howard Green, youtube.com/watch?v=cCADyBxcPSM
I was asked to consider trends of successful companies, in the context
of responding to natural disasters, I created the following list - some
of these points were discussed in the on air segment. This list was reviewed
and updated in Feb 2011 and March 2023.
WTGR |
| 7
Trends
of successful companies |
, | Being successful
in a turbulent world, beset by weather extremes and risk and threat situations
of all types, is not predicated solely on being commercially successful
with your customers – rather based upon being able to survive bad situations
so your business can continue when other businesses in your sector are
struggling to recover.
We have seen so many situations were businesses plan their activities based on various combinations of what customers may or may not do, only to be “sandbagged” because of an outside variable such as a violent storm effecting suppliers of one of their component parts in another region of the world |
| 7
Trends
Packaging |
, | 7 Trends
of companies
that are successful in handling weather extremes Companies will be more diligent in shipping in terms of packaging for unforeseen weather damage. Spending more money on packaging is a cost that has to be passed on to the consumer. If you can reduce the number of damaged products in transit (by having more robust packaging), this is a saving, so the strategy of spending more on packaging might end up being cost effective. |
| 7
Trends
Shipping
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, | Shipping times should have built in contingencies when the shipping channel is effected by freight delays in other parts of the world – companies will use more advanced technologies incorporating RFID technology and GPS so they’ll know more precisely where things are and can then use that information to make a decision about options if one segment of the shipping route is blocked or delayed. |
| 7
Trends
Contingency
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, | Marketing and
promotions people will develop contingency plans to react faster to changes
in the product that may result as a consequence of these problems
- example a fast food company may want to switch marketing of citrus based product to bacon double cheese burgers if the southern U.S. was damaged by an ice storm, conversely if the winter weather was milder in the mid-west, hog prices would drop (so add more bacon to the food menu !) - switching marketing promotions so quickly can’t be done if you bought hundreds of thousands of dollars of TV commercial air time too far in advance so wise companies will plan more effectively so such weather changes can be accomodated.. |
| 7
Trends
Communications
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, | Companies will
use web based information incorporated with Successful companies will be ones that have several communication systems that could operate if weather effects telecommunications in one part of the country. Lost Comms Scenario Companies also need “what if” steps to follow in case there is no communication for several days and certain important situations need to be dealt with. eg.. If the phone lines are out, should we leave the transport trailers where they are, or keep driving north because we eventually need to get to the warehouse depot anyway. |
| 7
Trends
Diversify
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, | Companies normally achieve great discounts for buying high volume from suppliers, which in turn allows those suppliers to achieve economies of scale and produce things less expensively - however diversifying sources of supply will be considered more important in the context of avoiding vulnerability if all your supply comes from one region damaged by an earthquake or hurricane. Successful companies in the future will be the ones that can quickly go to "back-up" suppliers if the main suppliers fail, and have those back-ups locked in and not gouge them with a high price. |
| 7
Trends
Money
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, | Money - companies
can’t operate without money and since such a large amount of money in B2C
and B2B relationships is digital, it is a big vulnerability if a collapse
of telecommunications freezes the movements of money because vaious electronic
devices have no power source or internet access.. Contingencies should
be arranged with your financial partners to create ways that money can
move, either as paper money, a Student Many Y. in MGTC44
in May 2010 also suggested that money should be set aside for those things
that will cost money above and beyond regular operations. Mandy suggested
"The Savings fund should be used for disaster
recovery plans so
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| 7
Trends
Weather
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, | Successful companies
will use advanced weather prediction models based upon more advanced
satellite imagery and historical modeling patterns and use this in
planning product offering cycles, especially clothing retailers and people
who sell types of food driven by seasonal availability. There are weather
consultancies advising business that predict future years will see an increased
demand for their services as large and medium sized companies seek to obtain
the most detailed weather information possible for planning supply chain
considerations and product manufacturing contingencies.
Essentially, maintaining some of the efficiencies that a large organization enjoys but having the ability to operate in modules as parts of the company are effected by region-wide or nation-wide emergencies. |
| 7
(+1)
Trends Product
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, | 7 (+1) Trends
of companies in 2011
that are successful in handling weather extremes o Product Variation Student Many Y. in MGTC44 in May 2010 looked at the 7 Trends listed in the 2005 interview and suggested that having a variety of products will reduce vulnerability - especially in the context of food based products vulnerable to weather extremes in particular regions. Another example could be a sporting goods company that imports bikes and bike accessories from one region of the world, but also has climbing equipment from another region. Essentially, if you used the strategy of diversifying your supply, you would in essence have some product variation. |
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