Joep de Laat (founder & owner)
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E: info@jdlsourcing.nl
How to avoid shipping and production delays during Chinese New Year (CNY).
The Chinese New Year of 2020 (year of the rat) is slowly getting closer. During this period, we are extra cautious with production and delivery planning. A lot of people tend to forget about Chinese holiday periods when producing in China. In 2020, it will take place on the 25thJanuary till 10 February. During this holiday, all factories are shut down for about four working weeks, allowing the workers time to travel back home in order to spend the holiday with their families. Sadly, it happens way too often that people tend to forget about the Chinees holidays when they want to manufacture their products in China. In this blog, we will tell you how to prevent this and what JDLsourcing has to offer as your production partner.
Factories close prematurely; Here’s what you need to know and what you can do about it!
Officially CNY starts on 25thJanuary, but the factory employees are allowed to travel back to their families from the 10thJanuary. So, keep in mind that this year, most factories will be closed between 10 January – 10 February during Chinese New Year. This time period is especially risky for products that are due for shipment in the spring season.
Therefore, I would like to explain how you can avoid delayed deliveries and quality issues during Chinese New Year when you want to manufacture your products in China.
1. Prepare a forecast to get you through CNY and beyond.
Ask for a factory holiday schedule at least 30-45 days before CNY. No matter whether you are dealing with a trading company or a factory, most are super busy in the last month before CNY, because every customer wants their products to be shipped out before CNY holidays. Arrange and plan your orders according to their holiday schedule in order to prevent unexpected delays.
2. Develop a good trusting relationship with your supplier or manufacturer.
If you are sourcing from China and just beginning to build your relationship with a new supplier or manufacturer, it will be difficult to build that relationship in the months prior to Chinese New Year. During this period, all suppliers and manufacturers are under immense pressure. If your business is the newest on their account, it is very likely that your goods will be their last priority when it comes to order completion and deliveries before CNY period. If you are working with a manufacturing partner or sourcing company, ensure that they have experiences with handling the rush during this time. Make sure to ask what measures they have in place to help their clients plan for CNY. A big advantage of working with a manufacturing partner or sourcing company is that you can benefit from their trustworthy supplier/factory network that they have developed over the years. This can help to ensure that your products are shipped on time during the hectic CNY rush.
3. It takes factories at least a month to ramp back up after Chinese New Year.
You might assume that the same workers who left before holiday will return afterwards. Some workers decide to stay in their hometowns and stay close to their families. Besides, CNY is generally considered the best time to switch jobs. This means experienced workers will leave and new workers have to be hired. In addition, orders that were not finished before CNY are still piled up at the factory. Manufacturers will finish these orders first before starting with yours. This takes a lot of time, which means that it can take up to a month for production speed to ramp back up after CNY.
4. Be aware of port shipping deadlines.
Book your shipments well in advance of CNY. The deadline of loading FCL/LCL containers is 3-4 days before the start of CNY. Therefore, it is smart to book your shipments well in advance of CNY. Freight carriers are notorious for raising freight rates during this period, as demand is high, those who can afford to pay more will leave earlier. Here is where another trusted business relationship with a sourcing company or freight forwarder will come in handy as most of them work with freight carriers that are more organized in dealing with the peak demand of CNY.
5. Put a Quality Inspector in place.
You have just had your products manufactured in China, but your products contain many quality problems just before CNY. As you can imagine, an order of goods that has quality issues right before CNY could cause huge delays. Factories are producing in high speed as they are in a rush to get out their products in time. During these times, quality can take a back seat. Having a local third-party quality inspector in place will drastically reduce the risk of delayed shipments due to quality issues or worse, shipping damaged goods to your customer’s door. This is another example where a trusted manufacturer/supplier relationship will help a lot.
6. While you’re at it, plan ahead for other Chinese holidays as well.
Chinese New Year is the longest holiday period in China, but there are actually several other Chinese holidays that might affect your business. Here is an overview of all the other holidays in China. Most factories/suppliers will also be closed during these dates:
– Qing Ming Jie Festival April 4th, 2020
– International labour day May 1st – 3rd
– Dragon Boat Festival June 25th, 2020
– Mid-autumn Festival October 1st, 2020
– Golden Week October 1st – 7th 2020
JDLsourcing as your production partner;
JDLsourcing is the expert when it comes to manufacturing in China. With years of experience and the right knowledge and mindset, JDLsourcing has been able to produce various products in China. JDLsourcing will take your worries away for the entire purchasing process. Things like looking for a supplier, having the products produced and the complete logistics with the necessary controls. For more information about producing in China, please visit our ‘manufacturing in China’ blog.
Contact us now in case you have any questions or in case you would like to receive a tailored quotation for your project. Our team of experts is ready to help you produce your products succesfully.
Chinese New Year
