Planning your business for CNY
Deal with orders and supplies
It will be difficult to deal with orders and supplies during the holidays. This is because production chains and delivery ports begin to close down one or two weeks before the holidays. In this case, you have to plan on delivering any cargoes to the port no later than 10 days before the shipping date.
Furthermore, it can be frustrating to deal with the Customs Office even when you are planning to import goods into China. Due to the holiday period, the Customs Office in China will slow down the processing of goods. Besides that, the customs authorities will charge you more for the whole period of storing your deliveries at the port. It is no question that transporting goods can be expensive, knowing that Chinese logistics will mostly experience staff shortage during peak seasons.
Prepare your inventory stock
Managing your inventory stock before CNY could be really helpful to you and everyone involved in your business. You should ensure that you have enough stock on hand to last the duration of CNY. To do this, you need to create an inventory forecast for your manufacturers or suppliers so that they will be able to process your demand, especially after the holidays.
Preparing inventory will prevent your company from over-ordering products which often leads to unexpected costs. On the other hand, you will also be able to identify quality issues beforehand and thus, reduce the risk of a delayed shipment.
Settle payments earlier
Since no payments can be processed during the week-long holidays, it is advisable to settle all outstanding accounts payables and receivables. Keep in touch with your stakeholders including investors, customers, manufacturers, and suppliers beforehand to minimize problems with your cash flow.
Due to holiday circumstances, it is best to have an automated cash flow system that can manage your payments efficiently. Using a digital accounting solution like Kwikdroid will help your business avoid any payment oversights. It will also ensure that your company’s financials are in order.
Give gifts or red packets
Your employees may consider CNY as a highly-awaited time for rewards and recognition. The Chinese corporate custom of giving out red envelopes or “hongbao” is one way of showing recognition to your Chinese staff. Companies usually give these out with the 13th-month salary or annual bonus.
A red packet symbolizes appreciation for your employees’ hard work and loyalty. It also gives a strong sense of gratitude for their contribution to your company. Furthermore, there are times when local companies also set aside a budget for giving gifts to trusted manufacturers or suppliers.