How to Cope with Production Delays in Asia

<p> <a href="https://www.steelelogistics.com" target="_blank"><img alt="" src="/userfiles/image/blog/container.jpg" style="width: 500px; height: 260px;" /></a><br /> As every brand owner knows, production delays can cause major headaches.  We sat down with Natalie Steele of <a href="https://www.steelelogistics.com/" target="_blank">Steele Logistics, LLC</a> to get a better understanding of what's going on currently in Asia and how brands can avoid production pitfalls.</p> <p> <strong>What types of events can lead to production delays in Asia?</strong></p>
Published: September 27, 2013

As every brand owner knows, production delays can cause major headaches.  We sat down with Natalie Steele of Steele Logistics, LLC to get a better understanding of what’s going on currently in Asia and how brands can avoid production pitfalls.

What types of events can lead to production delays in Asia?

Production delays come directly from the manufacturers and factories. Numerous things could cause delays in production: from not having proper materials requested, not having enough manpower, late planning on the customer’s side, etc. Shipping delays could also be caused by a variety of issues as well.  Being aware of overseas holiday schedules is huge, such as knowing when cherry season is taking place, or other large shipping seasons that directly affect space on aircrafts and vessels. These types of shipping rushes also drive freight prices way up, so working with your freight forwarder and manufacturers is key to ensuring timely and cost-effective transport.

 
What can brand owners do to mitigate the effects of the delays?

Planning and communication are huge! Making sure that your internal team is working on a strict timeline and also communication with your freight forwarders and production teams overseas are key to avoiding delays. The better the communication is between your entire team, the smoother everything will run. Keeping your shipping company in the loop about urgent shipments and coordinating as far in advance as possible will help eliminate last-minute problems. As freight forwarders we try our best to alert all our customers of upcoming hurtles so their freight isn’t subjected to unnecessary delays.  It sounds strange to coordinate shipping ahead of time with your forwarder, but it’s important.

 
How will these mitigations affect brands’ profit margins?

Freight could be a huge cost for companies and last minute rush orders drive those costs even higher. We understand sometimes these rush orders are unavoidable, but those costs are significantly greater which now will affect your bottom line. If you can limit the amount of large, rushed orders from factory to customer profit margins may rise. Also, again, planning! Checking in with your forwarders to see when GRI (general rate increase) take effect, or when peak shipping seasons begin and end could also help profit margins.  Freight is an integral part of many businesses and having a trusted partner that understands the industry holistically can really make a difference.

 

Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series