Tips to Prepare for Chinese New Year and Maintain a Reliable Supply Chain

It's that time of year again - Chinese New Year is just around the corner, which means your business needs to plan ahead to avoid delays in receiving the packaging you need for your products. If your packaging manufacturer is in China, this holiday can have a significant impact on your supply chain!

Fortunately, there are steps you can take to prepare and successfully navigate weeks of packaging manufacturer closings in China during January and February. 

What is Chinese New Year?

Chinese New Year, also known as Lunar New Year or Spring Festival, is a centuries-old tradition that celebrates the arrival of a new year on the traditional Chinese calendar. The holiday serves as a time to spend with family and friends, giving thanks for what has been achieved in the past year and setting intentions for the future. 

People across China celebrate Chinese New Year for two weeks, beginning on the first day of the new year, which falls on January 22nd in 2023. During these two weeks, many businesses close their doors, so people have ample time to spend with their loved ones. 

The celebration comes to its peak on the fifteenth day (February 5th in 2023) when a traditional family dinner is held followed by lantern lighting ceremonies, called the Lantern Festival. These ceremonies symbolize fortune and prosperity for another year. Lighting displays are also put up in public areas showcasing generations of culture and heritage throughout China.

How Does Chinese New Year Affect Your Packaging Supply Chain?

For cannabis businesses relying on Chinese packaging materials and manufacturers, the Chinese New Year can be a stressful time. While it's a two-week holiday, factories typically need at least two weeks to wind down operations before the holiday, and many need time after the holiday to ramp back up to full operations again.

As a result, there is an increase in demand in packaging supplies during the weeks leading up to the holiday as customers place orders early to prepare for Chinese business closures. At the same time, factories are slowing down production and workers start to take time off to celebrate. It's a recipe for delays!

Beyond manufacturing delays during Chinese New Year, there are also shipping delays as many ports and freight services across the country operate at a lower capacity during the holiday. Additionally, freight rates are likely to increase during January and February due to lower operational capacities.

All of this can lead to delays in receiving packaging materials, missed delivery dates, the potential for lost business, and higher costs for your business. Therefore, it's critical for any cannabis company that relies on packaging suppliers from China to plan ahead and schedule deliveries well in advance of the New Year. If you don't, your business is likely to experience costly disruptions in your supply chain.

Tips to Avoid Delays in Your Cannabis Packaging Supply Chain During Chinese New Year

In order to prevent delays in your supply chain, planning ahead, working with the right suppliers, open communications, and building contingency plans are key. Following are some tips to help you maintain a reliable supply chain during Chinese New Year.

1. Plan Ahead and Order Early 

Don't wait until the last minute to place your orders. Instead, plan ahead and order early. Make sure you have an accurate and up-to-date forecast of the packaging you need to fulfill customer orders, so your cannabis packaging supplier can respond appropriately. 

To ensure the accuracy of your forecast, maintain regular communication with key stakeholders, and use data and analytics in your operations software applications to identify trends or potential sales volume changes that may affect your needs and delivery schedules. 

With effective planning and a sound forecast for your packaging needs, you can place orders early and minimize or avoid delays.

2. Work with a Reliable and Experienced Packaging Supplier

Working with a packaging supplier that has experience sourcing and shipping during the Chinese New Year period is an important step to ensure your packaging supply chain runs smoothly. Not only can a reputable supplier provide knowledge and insights on all the possible challenges that come with packaging and shipping internationally during this holiday season, but also, their expertise in navigating related complexities can save your business time and money. 

For example, New World Packaging has over 30 years of experience in the packaging industry and knows how to navigate Chinese New Year disruptions. We have systems, processes, and relationships in place to help you avoid problems during Chinese New Year and throughout the year.

3. Speak with Your Packaging Manufacturers to Get Their Schedules During the Chinese New Year

The Chinese New Year period is an especially important time to communicate with your packaging manufacturers, so you're up to date on their plans for operations and closures. Make sure you get a full schedule of changes to their working hours and production processes so you can keep your own operations running smoothly. 

Reach out proactively to each packaging manufacturer you work with before the holiday period begins to get a better understanding of how their schedules might impact your business. During this communication, make sure you emphasize the importance of timely communication regarding any unexpected changes or delays that come up throughout the holiday season.

4. Have a Domestic Packaging Supplier Backup

During the Chinese New Year, your business can use alternative packaging sources to avoid problems and delays. A reputable domestic packaging supplier can ensure you have the packaging you need without disruptions caused by Chinese New Year. 

For example, New World Packaging works with a variety of highly reputable and reliable international and domestic packaging suppliers, so you'll have a backup plan you can count on at all times, including during the weeks suppliers in China are closed or working at limited capacity. 

We can also help you get the best cannabis packaging prices thanks to our 30-years of packaging industry experience and long-standing relationships with packaging manufacturers and materials sources. And if you need warehousing and inventory management for your packaging, we can do that for you too.

Key Takeaways about How to Prepare for Chinese New Year and Maintain a Reliable Supply Chain

Don't let the Chinese New Year catch you off guard and unnecessarily delay your cannabis packaging shipments. By planning ahead and being prepared for delays in communication and transportation, as well as having alternatives ready, you can keep your supply chain running smoothly and orders coming in on time. 

At New World Packaging, we have a team of experts who can help you get started so your packaging manufacturing and shipping processes are smooth, efficient, and stress free. Contact us today to get started!