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Benefiting from Chinese New Year Down Time

Goodbye Year of the Pig and hello Year of the Rat! This Chinese New Year (CNY) ushers in the next decade for Chinese manufacturing. During this time, millions of Chinese citizens will travel across the country to celebrate with their families. Likewise, factories commence to shutting down for an extended period.  For US manufacturers that outsource, this downtime is an excellent opportunity to review their strategies and prepare for the coming year.

How Chinese New Year Celebrations Impact US Outsourcing Firms

Factories shut down as most workers travel to rural areas to visit family. The official holidays are The Little Year (January 17 to January 25), The Spring Festival (January 25 to February 4), and The Lantern Festival (February 5 to February 8). While these are the official dates for each of these holidays, many factories will be closed for up to a full month before getting back up to full capacity.

Each year, this situation surprises some US outsourcing firms when they attempt to place orders. Unfortunately, they learn they will not receive their goods in the normal timeframe.  The good news is these holidays do offer time for US firms to review their business relationships and tighten up their outsourcing processes. If companies “don’t know what they don’t know” about this time of year, and want to take full advantage, they can look to experienced outsource manufacturing liaisons like ITI Manufacturing.

Taking a Proactive Approach during the Chinese New Year

ITI Manufacturing helps US-based companies that outsource use the lull during the Chinese New Year to review their business operations from an offshore supply chain point of view. ITI Manufacturing is an experienced offshore manufacturing liaison company.  We represent our customers by working hand in hand developing and coordinating plans and strategies on both sides of the Pacific. We also negotiate with offshore suppliers.  These on-going services are necessary to develop and maintain beneficial business relationships with the best factories in China.

The CNY holidays create what some companies see as a disruption to their supply chain. However, companies familiar with the downtime use it to plan for the coming year.  ITI Manufacturing helps customer firms prepare for the next production cycle. We do this by discussing what can be done differently in preparation for the next holiday cycle. Lastly, we help you prepare to negotiate with factories when they reopen.

ITI Manufacturing’s Outsourcing Liaison Processes

ITI’s proven and time-tested process is key to our customer’s continued success.  With over 45 years of experience in Asian manufacturing, ITI has the knowledge and experience to help US outsourcers navigate the coming year.

Our outsourcing process includes these 6 basic steps:

    1. Sourcing – Teams coordinating between the US and China evaluate customer needs and supplier capabilities for optimal sourcing selection
    2. Negotiation – ITI’s local China staff negotiates directly with factory personnel drawing upon their knowledge of the local language and culture
    3. Sampling – Approval samples are always provided prior to the factory being authorized to begin production.
    4. Production – ITI’s China staff monitors production proactively preventing errors
    5. Quality – In-process and post-production quality inspections are performed according to customer specifications.
    6. Shipping – Seamless handoff to customer’s freight forwarder or ITI handles all transportation and delivery and paperwork. Optimal scheduling chosen to best match customer’s needs.

We Are Here for Your Company

As US manufacturers look to maximize their offshore manufacturing capabilities in the coming year ITI Manufacturing will be available to assist with developing strong business relationships with preferred Chinese suppliers or source new suppliers while GUARANTEEING NO MANUFACTURING DEFECTS.  Regardless of which service you need, ITI Manufacturing can manage all of the details of your offshore supply chain.

If you’re ready to put our expertise to work for you, contact ITI. We’ll talk with you about the option of revamping your outsourcing process during or after CNY. If you’re currently working with a China factory and are experiencing issues contact us about our customizable Offshore Manage Service (OMS).  The service is customizable to offer only the services you need to solve the unique offshore issues you are experiencing.  We look forward to hearing from you soon.  888-574-6823.

By |2020-02-05T09:43:35-06:00January 30th, 2020|Chinese Manufacturing|

About the Author:

Avatar for Mike Stewart
Mike Stewart joined ITI in 2002 and is Vice President of Business Development. He has a BA in Business and Journalism from SFA University. Before joining ITI Mike sold, installed, and trained businesses in comprehensive business computer systems in the medical and automotive industries and served as Executive Vice President of a video news magazine production company.