It’s Chinese New Year, and 2023 is the year of the Rabbit.
But given that celebrations are already well underway, consider you and your supply chain – tortoised.
Yes, that’s a term straight from our Smart Directions dictionary!
Definition: what happens to the global economy when China (and other neighbouring countries) close both production and shipping for a two week observance of the Lunar New Year.
So why might this present more of a challenge than last year?
Three factors are in play here:
- The Chinese New Year is 10 days earlier than in 2022
- Earlier New Year = Earlier demand, therefore significant difficulties restocking
- The Royal Mail has already experienced disruptions to overseas shipments/deliveries due to a cyber incident
The rush to port began in early December, so any attempt to resume services before the celebrations are over, without a contingency plan already in place, will require more than just a touch of magic.
With workers returning to their jobs around February 5th and port congestion expected to last until March, here’s a few Smart Tips to getting ahead of the Lunar New Year in 2024:
- Book and plan early. Start working on a strategy as soon as you have the relevant dates. Understand how this will affect the promise you can make to your customers and impact cashflow within your business.
- Consider diverse shipping. They say don’t put all your eggs in one basket, so consider sending out smaller shipments through different routes to make it easier to move cargo around.
- Get techy. With consumers expecting everything yesterday, it’s important to know exactly where your cargo is at any one time. The best way to do this is consider logistics tech, or use carriers that already have the capability to give you data in real-time.
Remember – not all factories will open straight away.
Not only that, it takes time to complete the production process before goods can even be shipped, so make sure you communicate this clearly and expect further delays.
What if you have an urgent requirement, or need a reliable service to catch up with orders over the Chinese New Year?
At Smart Directions, we have more than a “top hat” solution to the year of the rabbit delays. With a wealth of experience and a diverse strategy for your business, why not give us a call on 01442 507 240, and find out how we can support you and your business, BEFORE your customers are hopping mad!