2020 Q1 – Prepare Your Business for Festivals in China ( Part 2) | 自由微信

2020 Q1 – Prepare Your Business for Festivals in China ( Part 2)

PTL Group PTL Group 2020-02-20

Preparing your supply chain for Chinese New Year (CNY)

The first quarter of the Chinese business sector revolves around New Year. It is amazing each year to see how a whole nation with business-wise slow down for holiday break, a unique phenomenon in the international business world.

For companies doing business in China, a logistic plan ahead is crucial. Here are some tips to help you prepare and avoid delays, cancellations (and frustration):

Check carefully all stages of production, shipping and handling of your product against the China New Year calendar.

Increase orders: ordering sufficient inventory for the first quarter is highly recommended. By ensuring adequate inventory, any factory closing or delay back to full production after the holiday will have minimal impact on your supply chain.

Pre-order: place production orders by the end of January 2019 to ensure shipment before the holiday.

Especially for exportings from China, make a reservation one week earlier on flight or shipping schedule.

Keep in mind that from late January through mid-February arrival and delivery times of shipments are a bet at best.

Even an order confirmation is not always a guarantee, as vendors make overbooking to ensure full capacity so each container is completely filled.

Immediately after the holiday

Re-check production schedules: workforce fallout during CNY and delays in getting back to full production may temporarily affect standard production time.