Marijuana Business Magazine May-June 2020

Marijuana Business Magazine | May-June 2020 56 C annabis companies in the United States started the year scrambling after manufacturing was temporarily halted or limited in China and other countries as authorities worked to reduce the spread of the coronavirus. The pandemic caused factory shutdowns in China, a major source of packaging materials, vape hardware and other products relied upon by U.S. marijuana companies. Similar disruptions followed in Italy, India and scores of other countries. Some U.S. cannabis manufacturers were able to sidestep issues in their supply chains by stocking up on inventory and establishing partnerships with multiple suppliers. In other cases, U.S. marijuana businesses nurtured strong relationships with their foreign vendors. One vaporizer company, for example, sponsors a Chinese rugby team in the city of Shenzhen and invites suppliers to the games. “This situation specifically outlined the need for resiliency and redundancy in the supply chain, and it was a big wake-up call for the entire industry, who had not planned for any of this,” said Arnaud Dumas de Rauly, CEO of The Blinc Group, a New York-based cannabis vape hardware manufacturer. What follows are tips and lessons gleaned from domestic cannabis companies forced to navigate obstacles while sourcing products from vendors in China and other areas dealing with the coronavirus pandemic. Cannabis companies share tips and lessons learned while addressing supply-chain disruptions unleashed by the coronavirus By Adrian D. Garcia Struggles Supply Side Coda Signature’s choice to package its Fruit Notes in compact mylar pouches rather than bulky tins meant it had extra packaging inventory during a supply chain disruption. Courtesy Photo Pandemic Pivot