Here it comes again…are you ready for the chaos of Chinese New Year? The New Year celebrations actually last for two weeks and begin ramping up before Feb 16. There is no time to waste if you haven't already started to plan for this year.
Here's a handy list of things to make sure you do to prepare your supply chain for CNY 2018.
- Order enough product to cover the 2-4 week factory shut down. Don't wait until the last minute to place your orders. This is the only holiday per year when workers go home, often to see their parents and their children. Once at home, they like to stay a while. The factory is going to be closed during this time.
- The final production runs before the shut downs are always rushed and as a result, there are almost always quality issues. Verify your production schedule and keep close tabs on progress. Be prepared to double check for quality issues with your orders.
- Keep in mind that 30% of the workers, including those with experience making your product will NOT return after the new year. You are going to have to plan for new learning curves for new workers and quality issues that result from lack of experience. Watch out!
- Plan to keep close oversight on production for the rest of February, March and April, until production is back in full swing and quality is back to expected levels. There is no substitute for strong oversight of your supply chains.
- Add staff for incoming inspection. You will need to double check the final shipments produced just before CNY, when workers are distracted and anxious to leave for the holiday. You also need to double check quality on shipments manufactured for the 4-6 weeks after CNY as new workers learn your processes.
- Asian manufacturers that have a lot of rush orders just before the holiday, may farm out some of their production to subcontractors. Be sure to check on the factory to make sure this isn't the case with your products. If you cannot go to China yourself, hire someone from Hong Kong to visit the factory on your behalf.
- Be sure to check incoming raw materials from your factory suppliers. At this time of year, factories may get sub-standard parts from their raw material and parts suppliers and not notice, or they just decide to use the parts anyway.
- Be prepared to spend a premium for containers, transportation, and expediting. Logistics providers charge premiums just before CNY as so many companies rush to get their inventory on planes and ships. Book ahead of time to ensure your products can be shipped.
The key to handling the chaos of Chinese New Year is planning ahead and being prepared. Happy 2018, the Year of the Dog.
SC
MR
Subscribe to our weekly e-mail update
Don’t miss out on the best in supply chain. Latest Supply Chain News
- Despite American political environment, global geopolitical risks may be easing
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- More News
Latest Podcast
Frictionless Videocast: AI and Digital Supply Chains with SAP’s Darcy MacClaren
Listen as Darcy MacClaren, Chief Revenue Officer, SAP Digital Supply Chain, and Rosemary Coates, Executive Director of the Reshoring Institute,…
Explore
Business Management News
- Joseph Esteves named CEO of SGS Maine Pointe
- Employees, employers hold divergent views on upskilling the workforce
- April manufacturing output slides after growing in March
- Q1 sees a solid finish with positive U.S.-bound import growth, notes S&P Global Market Intelligence
- 6 Questions With … Sandeep Bhide
- MIT CTL offering humanitarian logistics course
- More Business Management
Latest Business Management Resources
Talking Supply Chain: Supply chain’s watchdog
The healthcare supply chain is complex, and simply using the available data to gain visibility is more complex than it seems. OptiFreight…
Subscribe
Supply Chain Management Review delivers the best industry content.
Subscribe today and get full access to all of Supply Chain Management Review’s exclusive content, email newsletters, premium resources and in-depth, comprehensive feature articles written by the industry's top experts on the subjects that matter most to supply chain professionals.
Editors’ Picks
Port of Baltimore May Not Reopen Until Summer
The Port of Baltimore may remain closed until at least May, and possibly into…
A New Priority Greets Procurement Professionals in 2024
Cost reduction supplants supply continuity as the top issue facing…
Supply Chains Facing New Pressures as Companies Seek Cost Savings
A Boston Consulting Group survey of global executives found a majority are…
Digital Approaches, End-to-End Thinking Help Supply Chains Evolve
Supply chain disruptions come in many forms, but digital approaches and…
© Copyright 2024 Supply Chain Management Review, a division of Peerless Media. All Rights Reserved.
×