3 Ways to Overcome Lunar New Year Supply Chain Hurdles

More than one billion people celebrate the Lunar New Year, also referred to as the Chinese New Year. As part of these celebrations, hundreds of millions of people take time off work, attend captivating firework displays, flock to movie theaters, or gather with relatives to enjoy traditional dishes for dinner.

This year, the Lunar New Year begins on February 10, and celebrations continue until February 17. The Chinese zodiac designates 2024 as the Year of the Dragon, which is believed to bring growth, progress, and abundance. However, the start of the Year of the Dragon could represent a time of supply chain hurdles for companies that rely on robust manufacturing sectors in China, South Korea, Vietnam, and other countries that celebrate the holiday.

In the days following the end of celebrations, factories may take time to return to normal operating capacity. In turn, manufacturers need to prepare for the Lunar New Year and the disruptions it may cause. Below are a few ways to overcome potential holdups.

1. Utilize Domestic Vendors

While the Lunar New Year may cause inevitable supply chain challenges, anticipating these hurdles gives businesses a chance to act proactively. The best way to overcome Lunar New Year supply chain hurdles is to create a diversified supply chain. A diverse supply chain includes domestic vendors that promote a more versatile and resilient supply chain.

Thomasnet.com®’s Industrial Buying Engine™ empowers buyers to search, evaluate, and buy from top Canadian and U.S. suppliers. Additionally, at Xometry, we connect buyers with reliable suppliers by providing them with instant quotes from more than 10,000 manufacturers around the world, including 46 U.S. states.

2. Organize Inventory, Have Alternatives to Overcome Shortages

To ensure your business has ample stock, it’s important to plan for the time before Chinese New Year and the period after. The impacts of facility closures may continue into the spring, which may require increased communication with vendors.

This also includes having alternatives, whether it be for transportation or vendors.

3. Forecast Demand

In order to build a proactive supply chain, business leaders need to predict consumer demand. This may mean stocking up inventory ahead of time, sharing forecasts with suppliers, and submitting quote requests ahead of time.

Around the busy Lunar New Year, freight costs may increase, so it’s important to prepare to pay a little more to get shipments on time.

Set Your Sights Forward This Lunar New Year

As many people begin their Lunar New Year celebrations on February 10, you can continue business as usual — as long as you plan ahead.

This isn’t the time to wait until disruptions occur to begin exploring alternative sourcing opportunities. Instead, take advantage of this time to connect with domestic vendors and make 2024 your most productive year yet.

Source: Thomas Industry