How to Prepare Your Supply Chain Management for 2024 Chinese New Year Shutdown
Karishma Shikalgar on December 21, 2023
Dec 21, 2023 | 4 min read
Savvy decision-makers are not like rookie shippers. They plan for the Chinese New Year shutdown many months before the event. The better prepared you are, the greater your chances of ensuring that this yearly supplier shutdown results in as little trouble as possible. In this article, we will look at the challenges shippers face due to the lunar new year and how Avercast, a division of TransImpact, can help.
The 2024 Chinese New Year Shutdown
Every year, manufacturing factories in China and neighboring countries such as Indonesia, Malaysia, Singapore, South Korea, Vietnam, and Brunei slow down and eventually shut off to celebrate the lunar new year. For most factory workers, this is the only time of the year when they get to visit their families. In 2024, the Chinese New Year holiday will take place from February 9 to 15. During this period, production across China will stop, and all shipping activities will be delayed. Most businesses in the United States that import from these countries need to anticipate this supply chain planning disruption, so they don’t have to experience a stock shortage. The main problem behind this major supply chain disruption is that while the public holiday lasts only seven days, the overall celebrations last around 10–15 days (about 2 weeks). Manufacturers will stop production for at least two weeks to allow workers to visit their homes and families in other parts of the country and then return to the cities again.How will the 2024 Chinese New Year shutdown affect your business?
If your supply chain management relies on Chinese manufacturers that celebrate the holiday, the Chinese New Year shutdown will significantly affect your business.-
Production slows down
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Reduced production quality
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Shipping delays due to CNY shutdown
How do you deal with the Chinese New Year supply chain disruption?
As many businesses understand, prepping for the CNY shutdown can be challenging due to many moving variables. For instance, how much excess stock do you need to fulfill your forecasts? When are you going to place the order? Do you want a different plan of action for different suppliers? Is it sufficient to streamline your overall supply chain management process?Let’s consider these four factors for a better understanding of how to manage the CNY shutdown:
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Spend time on planning and accurately crafting your demand forecasting
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Share demand planning projections and communicate with your suppliers
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Manage shipping backlogs
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Increase safety stock to avoid inconsistencies
How can Avercast empower your business?
Avercast’s Demand Planning software delivers end-to-end visibility and improved control of your demand projections. With 280+ algorithms, our brilliant solutions effectively anticipate seasonality, shifting trends, and market uncertainties and provide accurate forecasting to enhance your decision-making. So, never run out of stock and plan efficiently during the 2024 Chinese New Year shutdown with Avercast, a division of TransImpact. To learn more about our products and services, schedule a demo or talk to our experts.- Category: Blogs
- Tag: Chinese New Year 2024, CNY shutdown 2024, Supply Chain Management