Every October the Chinese people celebrate National Day. They also recognize National Day as the “Golden Week” seven-day festival observance. The people of China hold ceremonies, parades, and other public displays in celebration. Like many other businesses in China, factories will close for this extended holiday, and they’ll resume operations the following Monday.
If your company has been outsourcing to China for more than one year you should already be familiar with the production delays that occur during this holiday. However, if you’re new to China manufacturing, or considering the option, the following information will give you some insight as to how to mitigate your supply chain disruption.
Golden Week and Its Effects on US Company Supply Chains
As Golden Week approaches, US companies are attempting to finish production runs in time to make pre-holiday shipment deadlines. Consequently, these shipments create space constraints during an already tight season. Additionally, air and ocean freight costs rise due to the higher demand. Furthermore, workers will often overbook carriers which cause obvious issues.
China manufacturers, as mentioned previously, close for the holiday. As a result, carriers may void certain sailings to optimize the utilization of their vessels. With help from companies like ITI Manufacturing, US companies can prepare so as to minimize or eliminate the negative impact to supply that Golden Week can have.
Golden Week Preparation Tips
If your company is shipping ocean freight and you want products in time for the winter season you’ll need to plan ahead. Companies must make sure that they time their shipment(s) to sail prior to the beginning of the Golden Week holiday. This includes a manufacturing timeframe that could very well be slightly out of the ordinary for your typical production cycle. The booking of the container and space on a ship are two details that are critical. Your planning ahead is also critical. Take nothing for granted; you’ll want to guard yourself against assuming something will automatically happen to compensate for the holiday. Many businesses new to China manufacturing error in thinking there won’t be any supply chain shipment interruptions during the Holidays. We’ve provided some additional tips for a smooth, uninterrupted supply chain delivery:
- Per your regular shipping schedule is there a container that should be scheduled to ship from the factory and sail near the time of the holiday? If so, consider modifications to the shipping schedule for that container or, if possible, anticipate and adjust your and your customer’s expectations knowing that container will be late.
- If necessary, increase your pre-holiday shipment quantity to adjust for the holiday delay.
- Set a shipping schedule at the start of the year considering all destinations and major holidays.
How to Start Before the China Rush
China manufacturers are an invaluable resource for American companies looking to maintain their supply chains while cutting costs.
However, when US companies aren’t familiar with how shipments become delayed, China holidays can often cause problems. Therefore, many companies are looking to ITI Manufacturing because of this and many other issues. Companies benefit from how we ensure quality control and the use of proper materials in manufacturing. They also look to us to ensure that China factories perform product testing and inspection in the proper manner. Perhaps your company should consider making ITI Manufacturing your offshore manufacturing liaison; we’ve been helping companies succeed since 1974.
With our 44 years of experience, we ensure our clients take full advantage of the benefits of China manufacturing. We help make sure you don’t move backward because of unfamiliarity with culture or what’s considered standard Chinese business practices. We do more than get your products to your warehouse on time, we guarantee they’re made to your exacting specifications. Call and speak with one of our experts today at 281-242-7030.