The Chinese New Year and a Reduced Mobility 

Globalization has allowed an improved accessibility of goods through an increased mobility and quick delivery services, which are now factors taken for granted by the average consumer. While it is true that these characteristics define the very notion of globalization, it is important to realize that supply chains today depend on and are greatly influenced by this globalization. Indeed, for this global mobility to run smoothly, an expertise that goes beyond the logistics is required; knowledge of the various cultures that contribute to the supply chain is essential to better understand and prevent any issues or challenges that could arise. 

One of the big players in international trade is China, whose culture is characterized by the celebration of the Chinese New Year. 

What is The Chinese New Year (CNY)? 

Officially, the CNY lasts a week, starting on the first day of the new moon, between January 21 and February 19, but in reality, several weeks are affected by this great celebration. 

It should be noted that in China, most factory workers are migrant workers coming from various towns and villages from all over the country, located hours and sometimes even days away from the factory where they work. Often, the CNY marks the only time of the year when these workers can return home and enjoy some family time. 

During this period, most factories close one or two weeks before the CNY to allow workers to return home in time for the festivities and concurrently, the two weeks following the CNY tend to operate at reduced capacity since workers don’t go back to work all at once. 

Consequently, the Chinese factories are closed for approximately a month due to the CNY festivities plus, they might also experience a production decrease during the weeks following the CNY, due to different reasons, including a workforce that abandoned its job without previous warning. 

How to Prevent Feeling the Impact of This Production Decrease? 

Being aware of these cultural differences is the first step towards providing innovative solutions. That being said, one must neither forget the western holiday season, which includes Christmas and New Year’s Day, which occurs only a few weeks before the CNY. 

This implies taking into account that many western employees will be on vacation during that period and that delays in the arrival of cargo ships in Canada are to be expected. Those delays can be due to some local businesses being closed during the holiday season, but they can also be due to our winter weather conditions, which can considerably slow down logistics. 

Some Challenges and Their Solutions 

➔ Pay in Advance

◆ Your suppliers’ accounting departments might be closed for several days or even several weeks during the CNY period. It is therefore important to plan your payments in advance to ensure you obtain your ports of call according to plan and avoid any delivery delays. 

➔ Choose Flexibility 

◆ If production is delayed during the CNY period and that merchandise to be shipped tends to sit waiting because there aren’t enough goods ready to fill a container, it may be advantageous to consider an LCL shipment. This option is particularly interesting when specific deadlines are to be met; by ordering an LCL, you are assured to receive at least a part of your order on time. 

➔ Prevent Activities Decrease 

◆ Finally, to counter an activity decrease during this period, make some time to plan your inventory, and consider increasing your orders before the CNY to avoid running out of stock. 

How Can Synergie Help? 

With more than 13 years of experience in international import, Synergie Canada has developed an extensive expertise in implementing effective strategies to counter the impact of the CNY on the supply chain. 

Synergie offers storage services allowing its clients to order bigger quantities and store their merchandise locally. This solution allows to considerably reduce any delays or even completely avert them. 

Furthermore, upon reception of a purchase order, Synergie ensures a direct and regular communication with the supplier in order to be informed of any possible delays and thus quickly implement a solution to address the problem. 

Synergie Canada is aware of the many challenges resulting from global mobility and works towards continually developing solutions to maintain and improve the efficiency and fluidity of the supply chain. 

Should you have any questions or would like to speak with one of our representatives, contact us today.