Chinese New Year: Tips to Keep Your Supply Chain Efficient (Infographic)
If you have been importing from China over the past years, you’re probably already aware that the Chinese New Year is one of the freight peak seasons that you should prepare for.
However, if it’s your first time, here is a detailed discussion of how the Chinese New Year can affect your supply chain:
The Chinese New Year is the most important holiday in China, that is why it is a tradition among Chinese people to take some time off and celebrate it with their family.
In fact, during its celebration, businesses temporarily shut down because they are focused on cleaning their houses thoroughly (to remove negative energy) and on preparing food for the feast.
As a result, freight demands shoot up, prices increase, and containers easily become full, making it expensive and difficult to import.
Having that said, here are four tips to keep your supply chain efficient during the Chinese New Year:
Confirm your supplier’s schedule
As mentioned earlier, Chinese people are focused on preparing for the new year’s celebration. For that reason, most Chinese suppliers start to wind down their operations one to two weeks in advance.
Aside from an early halt in operations, some Chinese suppliers also take long in resuming to their normal operations that’s why you need to confirm your supplier’s schedule so that you can place your orders while they’re still performing transactions.
Failing to confirm your supplier’s schedule can have you waiting for a month or two to place an order again since the Chinese New Year celebration usually lasts for sixteen days and that’s a red alert for import delay.
Place your orders in advance
Confirming your supplier’s schedule will enable you to place your order in time but why do it on time when you can do it early?
Placing your orders in advance won’t only help you avoid delays, it will also help you cut back on expenses and find adequate space for your shipments.
Everyone is on a rush months before the Chinese New Year that’s why you need to be proactive. Placing your orders early will help you get ahead of other importers on choosing the most affordable freight rate and obtaining the lowest GRI (General Rate Increase) possible. You will also be able to reserve enough shipping space for your goods before containers run out of space.
Split your shipments
Another technique that you can use to keep your supply chain efficient during the Chinese New Year is splitting your shipments into two categories: Urgent and non-urgent.
Urgent shipments are time-sensitive goods that are either perishable or needed immediately by its user. On the other hand, non-urgent shipments are non-perishable goods that aren’t needed immediately but still needs to be delivered on time.
During the Chinese New Year freight peak season, you should consider transporting only your urgent shipments because non-urgent shipments can be transported during the regular season wherein the demand and rates are low.
Collaborate with a trusted local freight forwarder
Collaborating with a trusted freight forwarder will free you of all the trouble that comes with importing because they got the trust of their clients for a reason.
Most trusted freight forwarders are knowledgeable with freight peak seasons and has connections with multiple international transport organizations. In short, your freight forwarder can help you negotiate with your supplier for better prices.
Moreover, they will take care of the paperwork you need for importing, that’s why you can sit back and relax throughout the process.
Here at Excelsior Worldwide Freight Logistics, you can make sure that you’re in the right hands. We don’t only have equipped and experienced people that are committed to keeping our clients’ supply chain efficient, we also conduct free orientation for those who are willing to learn about importation & exportation because it is our advocacy to share our knowledge & experience for 17 years in the business.
Visit our website today at www.excelsior.ph or contact us at (063) 525-9775