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Production increase and panic ahead of Chinese New Year

Countries in Asia are days away from their annual shut-down period due to Chinese and Lunar New Year celebrations.

Major disruption is expected for organisations with supply chains in the Asia-Pacific region.

Mainland offices will be closed in China from January 24th to 30th this year, whilst Hong Kong will shut down for a shorter period from January 25th to 28th. 

Indonesia, Korea, Malaysia, Singapore, Taiwan and Vietnam are preparing for their own work stoppages over some combination of days during the same time period as well.

Leighton Karl, Owners Representative at VISA Global Logistics, based in the China office of the company said January has been a difficult month for the sector.

Chinese New Year at the end of January 2020 has made the time between New Year and Chinese New Year very difficult,” Leighton said.

“I think a lot of businesses didn’t consider this factor, but as a business we have managed Chinese New Year very well.”

Leighton said VISA Global Logistics has been preparing for the shut-down period in Asia for at least the past three months by planning ahead with suppliers and customers.

“This process has been much easier in recent years through constant dialogue with key parties,” he said.

“I think that as a business you can minimise delays through effective communication, so If key stakeholders in any situation are briefed then it diminishes the risk,”

“If you’re well organised you can avoid any additional costs as a business and for our client base.”

During January 2020 eStore Logistics has experienced a significant increase of inbound stock from China due to retail clients building inventory to ensure that they don’t run out as a result of the holiday shut down. 

Leigh Williams, Managing Director of eStore logistics said on a per unit basis inbound stock receipts are up 42% on January 2019.

“Our team has taken a collaborative approach with clients and understood their purchasing forecast in order to meet the inbound stock volume requirements,” he said.

“This has involved careful planning, increasing dock hours and hiring additional staff to unload, receipt and put-away stock into storage,”

“All stock was receipted onto inventory within one business day and shipping container demurrage avoided, This has enabled clients to avoid using costly air services to import stock to Australia.”

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