There’s one time of year that every company sourcing from China needs to prepare for: Chinese New Year.
While others celebrate, you may find yourself worrying about whether your orders will ship on time.
Your suppliers are likely buzzing with activity as they ramp up production to meet festive demand. Workers are gearing up for their well-deserved break, and soon, the country will hit the pause button, effectively coming to a standstill for a week.
So, how can you ensure your orders arrive on time during this busy season?
While placing orders early, keeping in close contact with your suppliers, and stockpiling extra inventory are essential strategies, we believe one factor stands head and shoulders above the rest: having a local representative in China.
The Importance of a Local Representative
In China, a merchandiser ensures smooth operations and facilitates effective communication with your suppliers year-round. (We have a guide on how to hire one here!)
However, it’s during peak periods like Chinese New Year that their presence becomes particularly invaluable.
Stay Visible
During the run-up to Chinese New Year, factories experience a surge in order volume, making it easy for your order to get lost in the shuffle.
- High Volume of Orders: Factories are extremely busy, which complicates their ability to prioritize every client.
- Competing Clients: Other clients may have larger orders or more established relationships with the factory, pushing your order down the priority list.
A local representative can advocate for you, making it harder for a factory to delay your order.
“It’s far easier to let someone down over the phone or via email than in person,” a Guangzhou-based merchandiser told Kinyu. “Simply by being present, you’re applying more pressure on the factory than any number of emails could.”
Enhance Situational Awareness
Remote communication also often falls short during busy periods. A local representative offers invaluable insights by:
- Face-to-Face Interactions: These interactions enable your representative to ask questions, clarify expectations, and interpret body language-essential for grasping nuanced situations where “everything is fine” may not convey the full picture.
- Supplier Verification: Personal visits allow for direct verification of suppliers and their operations, which is crucial for confirming legitimacy and mitigating risks associated with fraud or misrepresentation.
Keep Your Suppliers Honest
Do your suppliers feel comfortable sharing their thoughts with you? We often find that Chinese suppliers may hesitate to express their concerns to overseas clients.
For example, a supplier might notice quality issues in the production process but may not feel comfortable bringing this up directly, fearing it could jeopardize the business relationship — especially during peak periods.
A local representative who speaks their language can bridge that gap and encourage open communication. They can facilitate discussions about potential problems, such as delays in raw material delivery or challenges with meeting production deadlines, that suppliers might otherwise keep to themselves.
How Can You Hire a Merchandiser on the Ground in China?
So how can you get a merchandiser on the ground in China? Here are your options:
- Hire One Yourself: You could create an entity in China and directly hire someone. However, as we’ve discussed in our entity essentials series, this is a massive undertaking and rarely worth it for smaller operations.
- Use a Third-Party Representative: This option gives you flexibility but keep in mind that during CNY, these fixers are likely busy themselves and may not prioritize your needs. They are also unlikely to understand your product and standards as well compared to someone in-house.
- Use an Employer of Record (EOR): This is where The China Desk comes in! Using an EOR allows you to hire someone in China on your behalf without all the bureaucratic headaches. You gain all the advantages of a dedicated merchandiser while avoiding the hassle of setting up an entity.
Don’t let distance be a barrier to effective communication — consider hiring local support with The China Desk today! After all, when it comes to managing your supply chain, being there truly makes all the difference!