The cannabis industry is constantly evolving and so is the supply chain of this industry. One of the major challenges that cannabis producers and retailers face is dealing with long lead times and product shelf life. These issues can have a significant impact on the profitability of a cannabis business and can also affect the safety and quality of the products being sold.
Lead Times Can Be Loooooong…
Long lead times refer to the amount of time it takes for a product to be manufactured, packaged, and shipped to the retailer. In the cannabis industry, lead times can be particularly long due to a number of factors such as the complex regulations surrounding cannabis production and the limited number of licensed producers. These long lead times can make it difficult for retailers to keep their shelves stocked and can also lead to higher costs for the producer.
It’s Not Milk But It Can Still Expire
Product shelf life is another important issue in the cannabis supply chain. The shelf life of cannabis products can vary depending on the type of product and the storage conditions. For example, cannabis flower has a shorter shelf life than cannabis oil or edibles. This can make it challenging for retailers to keep their products fresh and for producers to manage their inventory.
Regulations – The Long Arm of the Law
To address these challenges, it is important for cannabis producers and retailers to understand and comply with the regulations governing the cannabis supply chain. These regulations can vary by state and country, but typically include requirements for testing, packaging, and labeling of cannabis products. Compliance with these regulations can help ensure the safety and quality of the products being sold, as well as reduce the risk of legal and financial penalties.
What Can Cannabis Companies Do?
One way to reduce long lead times is by implementing a just-in-time (JIT) inventory management system. JIT is a system where products are produced and delivered as they are needed, rather than producing products in advance and storing them in warehouses. This can help reduce the need for large amounts of inventory and can also help keep products fresh.
Another strategy to mitigate long lead times and ensure product freshness is by building strong relationships with suppliers. By working closely with suppliers, retailers can better predict demand for products and make sure that they have the right products in stock at the right time. This can also help with negotiating better prices and lead times with suppliers.
To manage product shelf life, it is important for producers and retailers to have a clear understanding of the shelf life of the products they are selling. This information can be obtained from the supplier or through testing. By keeping track of the shelf life of products and by using retail demand forecasting software, retailers can make sure that they are only ordering and stocking products that have a long enough shelf life to meet demand. This can also help to reduce waste and ensure that customers are receiving fresh products.
Additionally, implementing a proper storage system that ensures optimal conditions for the products can also extend the shelf life of the products. This can include maintaining the right temperature, humidity levels, and light exposure.
In the cannabis industry, it is essential to comply with regulations regarding product packaging and labeling. These regulations typically include requirements for child-resistant packaging and warning labels. Compliance with these regulations can help to ensure the safety of the products and reduce the risk of legal and financial penalties.
The Bottom Line (TL;DR) – long lead times and product shelf life are significant challenges in the cannabis supply chain. To mitigate these challenges, it’s important for cannabis producers and retailers to understand and comply with regulations, implement inventory management strategies, and build strong relationships with suppliers. By taking these steps, cannabis producers and retailers can reduce costs, increase efficiency, and ensure the safety and quality of the products they sell.
