Once again it is time to plan for Chinese New Year (CNY) and minimize the possible impact on your supply chain. While East West is more than just China, CNY also has an effect on our operations in Vietnam and India and it is essential to still plan ahead in order to reduce potential supply interruptions.
For 2018, CNY officially begins on February 16th. Our experience with prior CNY holidays tells us that we should conservatively plan for no production or shipments leaving China during early to mid-February and for reduced output during the first half of March 2018.
To make CNY planning a breeze we have developed a simple rule which will help you account for the CNY delays:
- For orders you would normally have a required receipt date during the month of March, shift 50% of that volume to be received in the month of January, and 50% of that volume to be received in February
The net effect of the above is that you will receive 50% additional goods in January and 50% additional goods in February—to make up for the goods you would not receive during the month of March and early April.
For customers taking releases from East West’s warehoused inventory against blanket PO’s, we will automatically manage our inventory to minimize any CNY impact. We only ask that you provide us now with an updated forecast through the month of March.
DO NOT MISS THIS!
We recommend that any forecast or PO changes are communicated to East West by 10/13/2017, to ensure that we can implement the necessary strategies to keep your supply chain full over the CNY period.
Don’t delay planning for CNY this year! Give us a call today at (404) 252-9441 to discuss how East West can help you plan for Chinese New Year 2018!