What if there was a way to predict demand for goods based on accurate long-term weather forecasting and past patterns?
Well, there is. After working with UK grocery chains Tesco, Waitrose and Morrisons for the past decade, MetraWeather has expanded its retail services within Australia, providing businesses with evidence-based information for decision making on staffing, stock levels, energy consumption and a raft of other considerations.
Using weather insights and forecast services allows retailers with weather-sensitive product categories to better match supply with demand, ultimately driving profitability and increasing customer satisfaction. MetraWeather’ retail weather services support evidence-based business decision-making by your Data, Operations, Marketing, and Finance teams.
MetraWeather meteorologists and analysts look back at the impact of certain weather parameters on a company’s past sales patterns, but also use highly accurate forecasts as inputs for a predictive model to quantitatively describe how weather will impact forward sales. For example, based on past sales patterns and the upcoming four-week forecast of high temperature anomalies, a 20-30% increase in beverage sales is likely.
This cost-effective service allows retailers and suppliers to:
- Better match supply and demand for weather-sensitive product lines.
- Reduce inventory-holding costs and wastage of perishable items.
- More accurately forecast future inventory requirements.
- Capture extra sales during high-demand periods.
- Manage stock-movement decisions.
- Improve sales forecasts based on daily, weekly, and monthly forecast data.
- Anticipate challenges to supply chain operations due to weather events.
Australian businesses already using MetraWeather data to drive decision-making:
In Australia, MetraWeather provides weather data to watering, gardening, and lighting provider Holman Industries, a supplier to Bunnings. During the hot, dry and windy bushfire conditions of late 2019, sales of watering equipment more than doubled. For Holman, MetraWeather have run analytics projects in-house, to demonstrate statistically significant relationships between the weather and sales data. From there a predictive model was created, taking high accuracy weather forecasts as inputs. For more weather-sensitive product categories, upon validation the data showed a greater than 90% of variability in week-to-week sales driven purely by weather parameters.
Partnering with MetraWeather for weather observation and forecast services helped Reckitt develop business tools to support its commercial strategies for insecticide products in the Australian FMCG market.
Clients can also use MetraWeather location-based Forecast Information Analysis tools to make sales forecasts as frequently as daily. Longer-term forecasting developed by qualified meteorologists develop projections up to six months out. Thes projections assist marketing teams to better plan and schedule activity, and finance teams in making more accurate turnover predictions.
For further information, contact Alex Zadnik, Meteorologist and Analytics Expert at MetraWeather: Email: firstname.lastname@example.org or Tel: +61 439 767 557.