Heading into the final quarter of 2021, with the tight competition, many entrepreneurs are making plans accordingly for the upcoming holiday season to avoid supply chain disruptions in China.
The Upcoming Holidays For Retail and eCommerce Traders
At the end of the year and the beginning of the next year, there are few important holidays in the US. and China:
- International Men’s Day, November 19
- Thanksgiving: Thursday, November 25
- Black Friday: Friday, November 26
- Cyber Monday: Monday, November 29
- Christmas Eva: Friday, December 24
- Christmas Day: Saturday, December 25
- New Year’s Eve: Friday, December 31
- New Year’s Day: Saturday, January 1st, 2022
- Chinese Spring Festival: February 1st, 2022
Ahead of the holidays, it is a race against time for businessmen to get their goods made and then shipped to the US and Europe.
China’s Manufacturing Is In Trouble
As the main manufacturing superpower, China continues to play a vital role in productivity growth.
Especially during the pandemic period, there is no other country that can help the world to keep the supply chains running like China. China’s rapid recovery from the pandemic last year meant it outperformed other big economies.
However, things have been being different when you outsourced your supply chains to China. The shortage of power and containers are becoming two major problems for both Chinese manufacturing suppliers and international traders.
Things That Affect Your Supply Chain In China
Order Surge
Compared to the other countries around the world, China is one of the first countries that recovered from the pandemic. The demand for products remains elevated due to the upcoming Black Friday and Christmas shopping season. Those who have not prepared their orders may come across some problems.
Covid-19 Delta variant outbreak
In recent months, sporadic pandemic outbreaks attacked many places in China, caused by the worldwide spread of the Delta variant.
At the end of July, China reported a new Covid-19 outbreak in Nanjing, the capital of Jiangsu province. As the main manufacturing superpower in China, the outbreak forced many Nanjing-based suppliers to rearrange their production and shipment schedules.
Then in mid-September, the pandemic occurred Putian, Fujian province. Fujian is famous for being the manufacturing hub for sneakers, clothing, and electronic components. Factories had to shut down, leading the delays in the supply chain of related goods.
Therefore, multiple outbreaks of the highly infectious Delta variant of Covid-19 still affect China’s manufacturing sector.
Power Shortages
Began in early June and worsened in September, measures related to the restrictions on electricity have been implemented in China. According to the official news, factories in 10 provincial-level regions are enforced to limit their energy consumption. production suppliers in the manufacturing powerhouses like Guangdong, Jiangsu, and Zhejiang provinces were forced to suspend operation for a few days a week. Therefore, they have to scale back production and refuse any new orders.
In recent months, the power shortages led to production cuts and longer delivery deadlines, affecting the supply chain in both China and global markets.
Container Shortages
In order to bring a rapid spike in Covid-19 cases under control, the authorities canceled flights and suspended international trade, causing a tighter supply of containers and shipping capacity.
Currently, the main question for traders is that containers are hard to book. Both manufacturers and international clients need to wait longer and pay more for the shipment. Therefore, manufacturers received more overseas orders than in previous years, they struggled to ship the product out of China.
C2W Can Help With Your Supply Chain Planning
Except for the situations above, other considerable uncertainties will inevitably hurt your supply chains such as lack of raw materials and higher production costs.
Plan Ahead
Due to the complexity, if you have no idea how to plan ahead, you are gonna lose more. 2021 is a good example of making changes when facing uncertainties. Things you can plan like developing good relationships with manufacturers, partnering with one of the most trustworthy ones, setting the adjustable budget, and leave yourself enough lead time and delivery time for international shipment.
Prepare for Disruption
Forecasting in the current circumstance is more difficult than ever, forcing business owners to prepare for any disruptions. Keep in mind that there are a variety of scenarios that could not be avoided. So you should not rely on a single manufacturing supplier or limit yourself within a too-tight budget that nobody would accept. Where possible, evaluate second source suppliers, especially in long-lead projects where you have the flexibility to make a change.
C2W Is A One-stop Service Provider
C2W provides one-stop manufacturing services for businesses of all sizes. With 16 years of experience, we can help to move your supply chain to China without risks and losses. No matter what you need to manufacture or get assembled, we can help! We also provide quality inspection services and to keep your product in good condition. Contact us to see if C2W can be your reliable partner for your business.
