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Consumer cos implement all-weather strategies amid climate uncertainty

Erratic weather patterns prompt consumer firms to adopt climate-smart approaches, hiring experts and leveraging data to mitigate logistics and demand disruptions caused by extreme weather events

Photo: Bloomberg

Photo: Bloomberg

BS Web Team New Delhi

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The unpredictable weather patterns observed over India has caused consumer companies to take proactive steps to make their businesses more risk-proof, according to The Economic Times. These companies are adopting all-weather or climate-smart strategies to navigate the challenges posed by unseasonal rains, extreme heatwaves, and milder summers or winters.
 
Food delivery platform Swiggy has collaborated with an external weather forecasting agency to ensure uninterrupted deliveries even in adverse weather. Moreover, the company maintains an in-house team that constantly updates delivery personnel in real-time.
Similarly, Zomato has also hired a dedicated weather forecaster and analyst to keep its riders well-informed about crucial weather-related forecasting. The company offers additional monetary incentives to its delivery partners during weather-related disruptions. It even conducts contests where riders can earn rewards by making a certain number of deliveries during rainy spells.
 
The challenges posed by weather fluctuations extend beyond logistics disruptions. Consumer companies find themselves in a situation where they need to accurately predict demand fluctuations, effectively manage inventory, and handle out-of-home consumption channels, added the report.

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To tackle such issues, companies are resorting to de-seasonalising certain products and managing inventories through shorter production cycles. This approach ensures there are no unsold stocks, thus preventing losses. Beverage maker Coca-Cola has adopted an "all-weather strategy" that includes home stocking of beverages and increased trade discounts during extreme climate conditions, allowing their products to continue being pushed through trade channels.
 
The extreme weather fluctuation has caused the Indian Meteorological Department (IMD) to issue orange and red alerts in many parts of the country, warning against heavy rains and potential flash floods.
 

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First Published: Jul 28 2023 | 1:14 PM IST

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