SupplyChainBrain reports that Renny Vandewege, SCB Contributor, notes that weather—once a predictable risk for global supply chains—has become increasingly erratic, striking with greater frequency and intensity. According to the National Centers for Environmental Information, the annual average from 1980 to 2019 for weather events causing over a billion dollars in damage in the U.S. was nine events. For 2020-2024, the annual average is 22 events—a tenfold increase in just five years—imposing significant direct and indirect impacts from first mile to last mile. The reason weather impacts on supply chain stakeholders become more difficult to anticipate—and therefore to prepare for—is the variability in event types. Consider the major disruptions in just the past three years. In 2022, Hurricane Ian made landfall on the Florida coast in September, causing shipments in the preceding weeks to drop 75 percent. Later that year, a freeze during the Christmas week in Buffalo, New York reduced shipment volume by 40 percent from the previous weeks. During Canadian wildfires in June 2023, poor visibility delayed deliveries to Chicago and New York City by up to two days. And in 2024, the remnants of Hurricane Helene caused widespread flooding in North Carolina—severely impacting transportation infrastructure and halting operations at critical facilities.
From a supply chain perspective, Renny Vandewege serves as General Manager and Vice President of Weather Operations at DTN (based in Bloomington, Minnesota, U.S., CEO Andy Tinsley, owned by TBG AG—led by Burkhard Bonsels of Switzerland)—a firm providing weather and data analytics services globally to agriculture, energy, transportation, and commercial aviation sectors. Other major weather intelligence providers include The Weather Company (owned by IBM, based in Atlanta, Georgia, U.S.); AccuWeather (CEO Steven Smith, State College, Pennsylvania); StormGeo (Alvin Solheim, Norway, owned by Alfa Laval); Tomorrow.io (CEO Shimon Elkabetz, Boston, Israel); ClimaCell; Climavision; Vaisala (CEO Kai Oistamo, Finland); Earth Networks; and Spire Global as key ecosystem players. Primary U.S. government agencies include the National Oceanic and Atmospheric Administration (NOAA, Acting Administrator Laura Grimm); the National Weather Service (NWS); and the Federal Emergency Management Agency (FEMA, Acting Administrator David Richardson).
From a supply chain perspective, to mitigate these challenges, logistics organizations must take proactive steps. Since they cannot stop weather events, they must integrate advanced weather modeling into their operations. Traditional TMS (Transportation Management System) platforms are built to focus on specific operational tasks such as optimizing routes, managing freight loads, enabling better carrier relationships, and improving overall efficiency. However, without advanced weather modeling, TMS platforms cannot anticipate hyperlocal disruptions and respond to them proactively. Integrating weather intelligence into a TMS provides logistics companies with the ability to reroute shipments based on actionable insights into how weather events will impact supply chain operations. Hyperlocal forecasts alert companies to sudden weather changes, enabling logistics providers to make proactive decisions rather than reacting to unfolding events in real time. By leveraging hyperlocal weather intelligence, logistics companies can dynamically reroute shipments ahead of severe storms—reducing downtime and maintaining service reliability. They can also improve driver safety by identifying dangerous conditions and recommending alternative routes.
From a supply chain perspective, major TMS (Transportation Management System) providers include Oracle Transportation Management (OTM); Manhattan Associates Active TM; Blue Yonder TMS; SAP TM; Descartes Systems; Trimble TMW Suite; MercuryGate; e2open TMS; Alpega Group; Transporeon (owned by Trimble); 3GTMS; Cloud Logistics (Kuebix); One Network Enterprises; and BluJay Solutions (owned by e2open) as key ecosystem players. Extreme weather types include (1) hurricane; (2) tornado; (3) winter storm; (4) flood; (5) wildfire; (6) extreme heat; (7) severe thunderstorm; (8) blizzard; (9) ice storm; and (10) derecho as principal risk categories. Key climate risk assessment frameworks include Climate Risk and Vulnerability Assessment (CRVA); Task Force on Climate-related Financial Disclosures (TCFD); and Science Based Targets initiative (SBTi). In conclusion, Vandewege's recommendation for hyperlocal weather intelligence suggests that the global supply chain risk management paradigm is being redesigned—from a static-calendar foundation to a real-time-weather-model foundation—with TMS plus weather intelligence integration emerging as a critical strategic priority for supply chain managers.
Key Takeaways:
1. Renny Vandewege (DTN): Extreme weather events have increased tenfold in five years, from 9 to 22 annually.
2. Hurricane Ian reduced shipments by 75 percent—the Buffalo freeze by 40 percent.
3. Weather modeling integrated into TMS—hyperlocal forecasting.
4. Logistics companies dynamically rerouting shipments.
5. Driver safety and alternative routes represent key operational gains.
