Many people associate the importance of weather forecast accuracy with everyday needs, such as planning an outdoor picnic, avoiding driving when roads are expected to be snowy and icy, or determining when to water gardens and crops. However, the impact of weather on businesses is far greater, often hitting the bottom line.
Weather plays a role in many industries, such as transportation, agriculture and retail. It can affect various facets, including operations, safety decisions, supply chain logistics and demand.
More and more companies are beginning to understand the many ways that weather impinges on their business. They’re developing complex models to reflect these impacts so they can make better strategic decisions in the future.
Of course the bedrock of these models is weather data. Indeed the success of these models, which often run on high-performance computing clusters or supercomputers, is highly dependent on forecasts that are accurate, timely and relevant.
Likewise, ambitious and forward-thinking forecast providers are becoming increasingly aware of how they can provide additional value to their clients. One such example is DTN, the largest private weather company in the world and a ForecastWatch client, which was recently featured in an article in Digital Journal.
According to DTN Senior Vice President Mike Eilts, sophisticated businesses require digital data to quantify the effect of weather on their businesses. By partnering with clients and producing the weather information they need, weather providers can help businesses make better strategic decisions that improve operational and financial performance.
Of course, the models that produce guidance for these key decisions are only as good as the accuracy of the weather forecasts that feed them. Therefore, it’s essential that businesses assess the accuracy of the weather information they utilize.
ForecastWatch can help businesses with this important need by analyzing the comparative forecast accuracy among various providers. It can also help forecast providers improve their own internal accuracy.