3 Ways the Chinese New Year Can Impact Supply Chain

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The Chinese New Year can have an impact on several elements of the global supply chain. Since 2009, China has been the largest global exporter of goods. As a result, when the Chinese New Year hits, it can have a significant impact on businesses’ ability to get the goods and materials they need.

Your supply chain planning software can make a huge difference in your ability to manage potential challenges in inventory management, including shortages and delays brought about by the Chinese New Year.

Delays

Delays are common during and around the Chinese New Year. Since so many things shut down, it may be more difficult to move goods or get raw materials than anticipated. Rush orders may be significantly more expensive.

In many cases, those delays may last until spring, due in part to the significant supply chain challenges faced around the world over the last couple of years.

Costs

With nothing coming out of China for days, and shipping slowed down much longer than that, costs may rise for many critical goods. Businesses that have the ready capital on hand may be able to overcome some of the delays and challenges but can expect to pay more as a result.

Shortages

In some cases, the Chinese New Year may lead to shortages of essential goods. When shipping bogs down, it can be much harder to get those essential items at all. In many cases, it will take longer than anticipated to get those items back in stock.

How Can Your Supply Chain Help

Stock IQ can help forecast demand, keep track of your current inventory, and plan how you may need to move inventory around to address potential problems, all while helping to cut down on unnecessary expenses as much as possible.

It helps take delays like the Chinese New Year and other seasonal shifts in supply and demand into account so that you can plan more easily.

Are you thinking ahead to the Chinese New Year? Contact us today to learn more about how we can help you navigate those potential challenges.

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