Are you ready for the Year of the Wood Snake? Known for its transformative energy, this year calls for adaptability and strategic foresight, especially for businesses navigating the disruptions of the Chinese New Year (CNY).
With supply chains under strain and workforce availability fluctuating, preparation is the key to staying ahead. By planning inventory, optimizing logistics, and securing reliable staffing support from a trusted agency, businesses can turn challenges into opportunities and thrive during this festive season.
Understanding Chinese New Year’s Impact on Global Supply Chains

Chinese New Year is the largest annual human migration. Factories shut down for weeks, causing major production delays. Even after the holiday, operations take time to resume. Port congestion and limited freight capacity add further strain. Without proper planning, businesses risk stockouts and shipping backlogs. Partnering with a staffing agency can help maintain workflow efficiency.
Extended Factory Shutdowns During Chinese New Year
The typical 2-3 week closure can halt production for up to a month when factoring in ramp-up time.
Solution: Plan inventory at least 3-4 months ahead. Place larger orders in Q4 to build a safety stock covering the shutdown period and unexpected delays.
Reduced Labor Availability
Many workers don’t return post-CNY, leading to staffing shortages and production delays.
Solution: Work with manufacturers who have strong worker retention programs and collaborate with a staffing agency to fill gaps quickly.
Quality Control Issues
Post-CNY production often experiences higher defect rates due to new or returning workers. Solution: Implement stricter quality control measures during the first month after CNY. Have third-party inspectors ready to check initial batches.
Shipping Container Shortages
The pre-CNY rush causes container scarcity and price spikes.
Solution: Book shipping containers 6-8 weeks in advance. Consider air freight for critical inventory despite higher costs.
Port Congestion During Chinese New Year
Increased pre-holiday shipping volume delays shipments at both Chinese and destination ports.
Solution: Use alternative ports when possible and split shipments across different routes to minimize risk.
Communication Delays

Business communication halts during CNY celebrations.
Solution: Establish clear communication protocols before the holiday. Designate emergency contacts and document all pre-CNY agreements and orders in writing.
Price Fluctuations
Labor costs and material shortages post-CNY often lead to price increases.
Solution: Negotiate and lock in prices for the year before CNY, including written agreements on potential post-holiday adjustments.
Raw Material Shortages
Suppliers may run low on materials as factories rush to complete orders before CNY.
Solution: Secure raw materials in advance and consider paying deposits to reserve necessary supplies.
Logistics Planning Complexity
Coordinating shipments around CNY requires complex scheduling and contingency plans.
Solution: Develop detailed logistics timelines with alternative shipping methods for each product category.
Cash Flow Management
Ordering larger quantities, pre-CNY can strain working capital.
Solution: Explore inventory financing options, negotiate extended payment terms with suppliers, or consider revenue-based financing to manage cash flow.
Strategies to Mitigate Supply Chain Delays During Chinese New Year

1. Plan Inventory Early: Forecast demand months in advance. Place orders before peak season. Work closely with suppliers to confirm production schedules.
2. Diversify Logistics Options: Avoid last-minute shipping. Consider alternative routes or different freight providers. Air freight may be costly, but it ensures timely deliveries.
3. Strengthen Supplier Relationships: Maintain clear communication. Understand factory shutdown dates and plan accordingly. Collaborate on contingency strategies.
4. Use Data-Driven Decision-Making: Track lead times and shipping trends. Use AI-powered tools to anticipate potential bottlenecks.
The Role of Staffing Agencies in Supply Chain Continuity

A staffing agency can help businesses maintain operational efficiency during CNY disruptions. Remote professionals can handle supply chain management, track shipments, coordinate with suppliers, and manage logistics when on-site teams are unavailable.
When to Consider Fractional Supply Chain Support
- High-volume orders requiring real-time coordination.
- Multiple suppliers are spread across different regions.
- Unexpected disruptions that demand quick solutions.
- Need for cost-effective workforce solutions without long-term commitments.
More Staffing provides expert virtual professionals and staffing solutions that ensure seamless operations. Our team helps businesses navigate CNY and other seasonal disruptions efficiently.
On the other hand, Move Supply Chain, More Staffing’s sister company, offers fractional supply chain support to help businesses manage logistics, supplier coordination, and inventory planning effectively.
Additional Strategic Recommendations for Chinese New Year
- Diversify your supplier base across different regions to reduce dependency on Chinese manufacturing.
- Develop relationships with manufacturers in other Asian countries that don’t observe CNY.
- Use inventory management software to better predict needs and optimize stock levels.
- Consider near-shoring some production to reduce holiday impact.
- Build strong relationships with freight forwarders who can provide priority service during peak times.
Let’s Tackle Chinese New Year (and Beyond) Together!
Supply chain disruptions don’t have to derail your business. Partner with More Staffing, a trusted staffing agency, to stay prepared. Our staffing experts keep your operations running, no matter the season.
What’s Next?
Get ready for the Spring Canton Fair! Stay tuned for insights on emerging market trends, sourcing strategies, and global trade developments.
Note: This blog is a co-branded resource by More Staffing and Move Supply Chain. It combines expert insights on talent and supply chain strategy to help DTC brands stay ahead.