high season for furniture industry
When is the peak season for the furniture industry?
Generally speaking, the peak seasons for the furniture industry are the start and end of the year, while the off-season falls in July and August. As a furniture hardware accessories supplier, we follow the same pattern—mid-year is our off-season too.
During the peak season, factories face the situation of having to queue orders for production.If you were the company's procurement specialist, how would you address this issue?
Advance Planning to Lock Core Production Capacity
Sign a Peak Season Production Capacity Guarantee Agreement with core suppliers 2-3 months before the peak season, clarifying the minimum supply volume, delivery cycle, and breach of contract compensation clauses.
Based on historical sales data, place advance stock orders for some regular hardware accessories to reserve production schedules.
Diversify the Supply Chain to Reduce Single Dependency
Select 2-3 alternative suppliers (which may include factories in different regions) and allocate orders proportionally during the peak season to avoid order backlogs at a single factory.
Negotiate "off-peak and peak season flexible cooperation" with suppliers: increase small-batch orders appropriately during the off-season to maintain partnerships, and secure priority production capacity during the peak season.
Optimize Inventory and Order Management
Establish a safety stock mechanism: stock up on core high-frequency-use accessories with long production cycles to 1.5-2 times the monthly usage before the peak season.
Classify orders by priority: assign urgent orders to suppliers with flexible production capacity first, and arrange regular orders for batch delivery as planned to avoid concentrated order pressure.
Strengthen Communication and Dynamic Adjustment
Sync order progress with suppliers weekly during the peak season, track production schedules in real time, and issue early warnings for potential delivery delays.
In case of severe order backlogs, negotiate to pay a small expedited fee to shorten the production cycle, or adjust the delivery time of some non-core orders.
Finally, we wish you all a pleasant procurement experience in China and every success in your work!
