Why Procurement Planning is Critical Ahead of Chinese New Year

January 22, 2020

While the United States is just emerging from its holiday season, China and many other Asian countries are days away from theirs. Between Chinese New Year and Lunar New Year, entire countries will just about shut down for a period of several days to more than a week to celebrate.

For organizations with supply chains heavily tied to this region of the world, planning is in order to avoid major disruption.

This year, the Chinese New Year (CNY) will mean closed offices in mainland China from Jan. 24 to 30. Hong Kong’s dates are slightly shorter, from Jan. 25-28. Indonesia, Korea, Malaysia, Singapore, Taiwan and Vietnam are preparing for their own work stoppages over some combination of days during that time period as well.

What does that look like? Delayed production during and after the shutdowns, slowed shipping as the countries play catch up and limited space for last-minute cargo until everything returns to normal. Smart U.S. companies have plans in place to accommodate the disruptions.

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Source: Supply Chain Dive