Severe Climatic Conditions A Major Threat To Shippers

Although it takes two days or less for an online delivery to arrive. However, the adverse effects of increasing weather events like Houston’s heat waves, Florida’s hurricanes, and other extreme storms, challenging the carriers to ensure fast delivery.

“Continue To Face a Myriad of Disruptions”

“Shippers and carriers continue to face a myriad of disruptions,” said Jenny Zanden, a Breakthrough chief operating officer. 

Several logistics companies are warning about the delays in shipping due to adverse weather. According to Freight Waves, in 2024 Weather-related supply chain disruptions will cost the industry an estimated $100 billion. Freight solutions company Breakthrough, after conducting a survey of 500 shippers and carriers this year, claimed that the extreme weather was the top challenge for transportation. 

“Last year, transportation professionals were focused on reducing costs as a means to overcome volatile diesel prices. This year, sustainability and climate-related disruptions are driving the need for fuel efficiency and changes to transportation strategy,” said Zanden 

Increasing weather events is a global issue. For Instance, the Panama Canal, plagued shippers due to drought conditions and  the issue is also the biggest challenge for the  retailers in the U.S. as they keep warehouses and stores stocked.

Walmart’s Predictive Analytics To Optimize It’s Delivery Strategies 

In March, a snowstorm in Sparks, Nevada, forced the closure of Donner Pass, a critical route through the northern Sierra mountain range. This disruption prevented Walmart from dispatching grocery deliveries from its Sparks distribution center. To address the challenge, Walmart utilized predictive analytics and artificial intelligence to optimize its last-mile delivery strategies

Senior VP Walmart said  “We have now this technology at our hand, which allows us to make sure that we continue to serve those customers in the best possible way, run those scenarios, and have those recommendations ready so that we can start taking actions in a much quicker way, rather than waiting for the event to happen and then reacting.” 

Walmart used its AI’s simulation platform built to create a digital twin of its entire network, predictive modeling allows the company to see how to respond to an adverse weather event. 

“We Make It Seamless For Our Customers”

“Our goal is that by using technology and AI, we make it seamless for our customers where they don’t see the impact of some of this unforeseen event that happened, and we continue to serve the customers in that area. We would reroute trucks where possible. We will realign warehouses that serve the stores in that area so that we can continue to bring the freight for our customers in the affected areas,” Musani said.

Target is adapting its models to make sure the areas remain stocked where supplies may be in need, pre-positioning inventory like food, water, batteries and other essential items in areas where predicted storms will hit. 

“We can quickly shift delivery origins across markets to ensure our stores are stocked,” said a Target spokesman

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