Case Study – MES’s Solution Against Chinese New Year

9 days later, almost all Chinese factories will be closed for the biggest holiday in China: Chinese New Year. Chinese across the country will be heading back to their hometown for family reunion and holiday celebration. The activities will take 2-4 weeks which means during this period, you will not be able to get much help from your suppliers, even if you run out of inventory.

Every year around the Chinese New Year, customers will be struggling for the delivery and suppliers keep bringing surprises to customers:

• Unable to deliver on time;
• Able to deliver, but with partial quantity;
• Able to deliver, no logistics available;
• Higher defective rate;

How does MES customers stay out of these?

• MES China team will check with all suppliers for their holiday plans before the end of December. After information is collected, a report will be made and sent to MES US team. Our Planning & Analysis team will look into the report and adjust all following plans accordingly.
• Planning & Analysis team in US will release POs which will cover delivery during holiday & two weeks after holiday. Suppliers will finish all POs before holiday. To reduce impact and potential uncertainty, our will raise safety stock from 4 weeks to 7 weeks to cover demand fluctuation.
• Logistics team of MES China will book enough space for both ocean and air. Forwarders will reserve the space but there are always two extra forwarders as a backup to eliminate potential surprise.
• China logistics team sets up daily meeting with suppliers and our on-site engineers for actual production schedule. If there’s any deviation from the schedule, extra shifts will be arranged to ensure the quantity remains same.

With the efforts from our US team and China team, we brings satisfactory to our customers, as always.

Need our help with your inventory? Feel free to contact us: infochina@mesinc.net