In America, you probably don’t give Chinese New Year much thought. It’s something that you may see in Chinese takeout restaurants or maybe you don’t know much at all. While January 1st is celebrated as the universal New Year, Chinese New Year’s date fluctuates. This year, Chinese New Year was on February 5th.
This celebration is not just about the celebration in the sense that everyone goes out, drinks, and then spends the next day recuperating. For this special celebration, those living in mainland China take it very seriously. Travel is extensive, businesses often close, and people can go home for several weeks.
One of the industries that are affected by the Chinese New Year are manufacturing companies. Sometimes, this holiday shutdown can cause companies to be shut down for up to two months as the workers will travel back to their homes to be with loved ones.
While this is a wonderful time for those who participate in the celebration, this is the biggest shutdown of the year and is something that those who rely on shipping and manufacturing businesses should be prepared for. During the holidays, when orders would be high, you will want to make sure everything is in order before your supplier shuts down.
Even if the factory that you calculate into your production line is just one step in your supply chain, the Chinese New Year shutdown will affect your business. Due to the shutdown, you will not be able to get in touch with your supplier until the factory reopens. Even then, factory workers do not all come back at the same time. What this means is that the factories will have to replace these absentee workers quickly and lower quality in the product can be a result.
Here is a timeline of the Chinese New Year, so you have an idea of how the process usually goes (provided by Ship Bob):
- Mid-January: Suppliers will begin to stop production.
- End of January: Employees begin leaving the factories.
- February 4: All employees have left the factory.
- February 5: Chinese New Year.
- Mid-February: Employees begin arriving back at the factories.
- February 25: Most employees have returned.
- March 4: Operations are almost back to normal
What can you do to help avoid mass chaos when the Chinese New Year comes around?
Prepare Ahead of Time
If a factory in China is your main supplier, it would be a good idea for you to keep track when the Chinese New Year is. For 2020, the Chinese New Year is on January 25th. This is right around Holiday season. Which, means you will want to order more than you usually do from your supplier so that you can properly provide for the high amount of orders that you will receive around that time.
Talk With Your Supplier
You will want to make sure you have an open line of communication with your supplier so you can properly understand the plan the factory will take for the holiday. Talk to them a couple of months ahead of time and let them know what you are going to need so that you are not left unprepared when the factories close.
Temporary Solution
Let’s say that you can’t predict the number of orders you will be getting in during this time, which is most likely; you may want to consider another factory elsewhere as a temporary solution. Have a backup during this time established so if you need to reorder, you don’t have to worry about being out of stock too long while the Chinese New Year shutdown is commenced.
2019 is the year of the pig. This Chinese New Year has come and gone, but this is a yearly event. Be sure to plan ahead so not only will Chinese citizens enjoy their holiday, but you can rest easy and not stress during this time.
