The time has come for the Chinese New Year and you should have started preparing your supply chain plan, one year ago.
But it’s ok if you didn’t! You can still survive this!
Chinese New Year is on Tuesday, 5th of February, but remember that all operations in China will be closed from 5th to 19th of February. As you can imagine, a huge market such as China will stop operating for 15 whole days paralysing the globe. Workers in China travel to spend these days with their families with the risk of not coming back at all. Hence, you have to be prepared for a period of 5-8 weeks where nothing is working properly.
First things first, you have to find an experienced freight forwarder that you can trust him with your shipments. Choosing a digital freight forwarder, such as Haulystic innovations, with years of experience in global distribution, can help you organise a plan that fits your needs and requirements.
Tips for Pre- New Year
- You need to inform your customers about the problems that they may face due to the Chinese New Year. Make sure that they know about the delays of the shipments so they can place their orders earlier than usual.
- You need to know beforehand when your supplier will stop shipping products from Asia. Most factories reduce production for a period of up to two weeks before the Chinese New Year. Even contacting manufacturers and suppliers may be difficult if they are not available. By preparing earlier, you can save time and trouble.
- As everyone is getting ready for the holidays, factories may hurry to fill orders before closing. That means, that the quality of the products may be affected as the suppliers are under high pressure to cope with the production volumes. You have to be ready for the high risk of deficiencies in products, and check the quality of your products regularly and extensively. Hire extra staff for the inspection if it is what you need in order to be certain about the quality of your goods.
- The capacity for sea freight and air freight will be reduced and the rates are going to rise since many people try to schedule the shipping of their products as soon as possible. The vessels become tight and even road haulage faces challenges as drivers take some time off to travel home to their families. For sea freight, you need to get consignments to the port of origin at the earliest time possible. For air freight, remember to book your flight early to avoid high costs and disappointment.
- In many circumstances, cargo can be left at the docks. Check again and again with your freight forwarder to ensure that the rates are locked in and your cargo will be delivered in the arranged timeframe.
- You need to work closely with your freight forwarder to ensure that you will know when is the last date that they can receive and load the cargo. An experienced freight forwarder, such as Haulystic innovations, can guide you through the whole process and find the best solutions according to your requirements.
- Sometimes, factories employ subcontractors to take over some of their production volumes or they buy sub-standard parts from their raw materials and use those for production. Be sure to check that your products will be produced by the factory and with the original raw material parts.
Tips for Post-New Year
- You have to ask your supplier some questions before the Chinese New Year, in order to be ready and able to arrange your inventory and demand accordingly. When will your supplier start production again? When will they resume shipping products to ports? When will your products arrive at the port? Are there any issues of degradation if your products are stored in an Asian warehouse? Do you need to schedule any inspections for your goods? Working with an experienced and digital freight forwarder will save you time from chasing up your suppliers. You will get tailored logistic solutions inefficient lead times.
- Bear in mind that volumes will be back to normal after the 7th of March and at that time everyone will be rushing to organise the inventory, make new orders and arrange the shipping. If you start preparing now and book all the deliveries for March then you will have one less thing to worry about.
- Remember that 30% of the workers may not return to their jobs after the New Year. Factories will have to hire new people and train them. The lack of experience can cause many delays to production as well as to distribution. In general, workers will return to their jobs but at different times. Thus, it will take some time for everything to return to its normal situation. Be patient, know the exact location and condition of your goods and everything will eventually be as it should be.
- We recommend that you have a close eye on production for even 2-4 weeks after Chinese New Year. Double-check and triple check the quality of your goods and the manufacturing and storage conditions.
Chinese New Year is associated with joy, family time and also with delays in shipments and frustration for suppliers and buyers across the globe. Collaborating with a digital freight forwarder means that you can create a plan that is viable, efficient and effective.
In case that you want to start preparing sooner for next years’ CNY, then bear in mind that in 2020, Chinese New Year will be on the 25th of January- Year of the rat, and in 2021, Chinese New Year will be on the 12th of February- Year of the ox.
Knowing is power, and in your case, it means that you can organise your supply chain, so this period can pass smoothly without hurting your business.
At Haulystic Innovations, we have years of experience at the Asian market, knowing all the pitfalls and opportunities that may arise during this period. Together we will create a supply chain plan, according to your needs with efficient lead times at the lowest possible cost!
We can help you achieve your commercial goals!
Book your shipments online and start the Chinese New Year with us!