Don’t Let the Chinese New Year Get the Best of Your Business

To many, the Chinese New Year marks the beginning of the New Year, while businesses see the holiday as a supply chain nightmare. The date of the festival falls on the second new moon after the winter solstice on December 21st, which happens to be January 25th, 2020. Even though the Chinese New Year only lasts one week, many factories and businesses shut down for about 10 days before the holiday to allow for travel time, causing the disruption to last anywhere from 35-40 days. As you can imagine, this throws a serious wrench into many business’s logistics plans. The Chinese New Year will affect your supply chain in several ways. During this time when employees travel back to their hometown, all manufacturing projects are put on hold while manufacturers and distributors go on vacation as well. This means that no orders ship out of China or Taiwan. Any attempts at phone calls or emails will remain unanswered as no one will be present on site. You may experience serious production slowdowns about one to two weeks before the Chinese New Year because employees have already left to travel back home. In addition to slow production, you may also run into some quality control issues as workers rush to complete orders before too many employees leave and before they close for the holiday. The Chinese New Year produces a lot of turnover within factories, resulting in additional quality control problems from inexperienced new hires. This all may seem like inevitable chaos, but fortunately we have several tips to help keep your supply chain running smoothly. Ship Orders Early: Try to