If you are an Amazon seller or you outsource any product from China, you’re may familiar with Chinese New Year, perhaps your supply chain has even experienced Chinese New Year before.
If so, you know it comes to preparing for production and shipping disruptions. In the article, we will talk about: As an Amazon seller, how to keep your supply chain on track while minimizing any negative impacts during the Chinese New Year?
First, let’s talk when is Chinese New Year?
The Chinese New Year – and the Year of the Tiger – is just around the corner. Chinese New Year will begin on Tuesday, February 1st, 2022. (pay attention here: this date is not fixed, every year will be different, normally the date is between the end of January and the beginning of Feb.) Typically, Chinese factories close for about two-three weeks, allowing workers travel back home to spend the holiday with their families.
What Does Chinese New Year Mean for You? How will it affect your business?
You may check from Google or somewhere, that Chinese New Year officially only lasts for one week, but many factories and businesses shut down about 10-15 days before Chinese New Year, and don’t forget to account for travel time back to the city. In all, the holiday can disrupt production and shipping schedules for up to three weeks or more.
It will happen:
1, Halted production
During the Chinese New Year holiday, almost all factories close, and employees go on holiday for at least two weeks. You may not be able to get in contact with your suppliers during this time. All production will come to a halt, and you won’t be able to get in touch with the factories until after the holiday ends.
2, Reduced product quality
When factories reopen after the Chinese holiday, workers may not come back at the same time, and sometimes not at all. Interestingly, the Chinese New Year holiday is also considered a good time to switch jobs, and many workers don’t return to work at all. When workers don’t come back, factories must find new workers quickly, which leads to untrained staff working on production lines and lower quality. so, when new workers are on the line, many products maybe will not be produced properly.
3, Shipping delays
Since the Chinese New Year shutdown happens every year, most businesses do their best to prepare for the factories’ time-out by increasing their production before the holiday. This can often lead to an overload of shipments that need to be made right before the holiday begins. And also, some workers will leave early to start on their holiday, there’s a chance your shipment could be delayed.
Knowing what to expect during the Chinese New Year is only half the battle. Being well prepared is the best way to alleviate any negative impact on your supply chain. There is no way to avoid CNY – it happens every year and it requires advanced planning to minimize interruptions on your end.
Here 4 tips reduce the Chinese New Year stress and contribute to a successful plan and smooth sailing through the next Chinese New Year.
How should I prepare?
Tips 1: Communicate with your sourcing agent or your supplier
You need to know your supplier’s holiday schedule, as different factory has different schedule, for example, factory in the north of China will have longer holiday than the south of China.
it’s a good idea to talk with them openly about potential problems, to make sure the production process is on schedule. Ask your supplier what delays may occur, then work together to find ways to effectively overcome those obstacles.
Tips 2: Increase your inventory beforehand
Take a look at your past sales, which you can check from your Amazon seller account, and use them to determine your inventory needs ahead of time. You can forecast how much product you’ll need for the first part of next year, you could begin to order a little more product now to account for the lack of orders to be received in March of next year to hold in inventory. Get in the habit of managing your inventory well, and you’ll already know what you need when the time comes to order before the Chinese New Year shutdown.
Since you know the Chinese New Year shutdown is coming, today is 28th Nov, you can act now to reduce the possibility of unplanned delays and keep your business running smoothly.
Tips 3: Keep an eye out for the possibility of early shipment
The cargo ready date, that is, the date when the products are available, usually changes a lot before the Lunar New Year. Please make sure and regularly confirm the progress and completion date of the goods with the factory. Once your goods are prepared earlier than expected, you may arrange for early delivery with your freight forwarder.
Tips 4: Pay extra attention to quality control
Sending out products that don’t meet your standards can seriously damage your brand’s reputation, not to mention bad reviews on Amazon. The last thing you want is for an order of products that has quality issues to ship right before Chinese New Year. Sometimes quality may take a back seat because the factory is producing under high pressure and is eager to ship out the goods. and After CNY holiday, When the new batch of workers begins at the factory, their lack of training and experience will often show in the quality of your products.
Make sure that you have a manufacturing inspection plan, and that it’s strictly followed during the time period, to reduce the risks of a delayed shipment and quality issues.
Bling sourcing, we only work for Amazon sellers, we help our customers buy from China, and provides a one-stop sourcing service. We work as a seamless extension of your business locally in China, helping you maintain your supply chain and quality control. More importantly, you can focus on your core competencies while you leave the sourcing to us. Contact us freely!