(This is Part II of our Chinese New Year planning installment. Click here to view Part I.)
It’s never too early to start planning for Chinese New Year (CNY). In 2013, CNY begins on February 10th and lasts through February 17th. Due to the workers traveling back home from the factories, the impact on production and shipping begin long before February 10th. Previous years of experience dealing with CNY, we typically plan for shipments to stop leaving China at the end of January 2013. As workers begin migrating back to factories after the end of CNY, production and shipping usually do not start again until early March.
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
Every year in September, East West sends out a fun mailer to our customers with a reminder to begin the planning process for CNY. We ask that purchase orders are sent to East West no later than mid-October in order to plan for ample production and shipping time prior to CNY. For our customers that use a forecast and depend on East West to manage their inventories, we will automatically manage our inventory to minimize any CNY impact using our customers forecast through the month of March.
East West understands your need to balance lower inventories and to have access to an uninterrupted supply chain. We have the resources to help you plan for a successful CNY 2013. Contact us today to see how East West can help you minimize the impact of CNY.