EXCLUSIVE: Streamlining The Cannabis Industry - Collaboration, Data Sharing In The Supply Chain

The cannabis industry is growing rapidly as the demand for marijuana and its by-products rise, leading to heightened competition and the need for efficient and profitable streamlined operations.

The Benzinga Cannabis Capital Conference brought together top executives in the cannabis industry to discuss the importance of streamlining operations and the strategies successful businesses are using to achieve this goal.

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Collaboration Across the Supply Chain

Curaleaf CURLF has implemented an OKR (Objectives and Key Results) that allows them to move away from decision-making based on anecdotes and gut feelings. This means providing specific measurable KPIs across the business in every function, according to CEO Matt Darin.

Data strategies are crucial to streamline the cannabis industry, notes Ankur Rungta, CEO of C3 Industries Inc.

Headset CEO Cy Scott stresses the need for centralized data management to make informed micro-decisions. Normalizing data in a central location is essential for businesses with multiple locations and markets, but data literacy across the organization is critical for effective communication and decision-making.

Streamlining data measurement and ensuring that teams can interpret and communicate data effectively can lead to significant benefits. Thus, Scott recommends following Amazon's example in promoting data literacy among employees.

Scott also emphasized the benefits of collaboration across the supply chain, such as sharing data and optimizing inventory management. The use of data has evolved, and it's essential to find the right KPIs that matter and align them to achieve objectives.

Operational Data: Key To Improving Customer Experience

Operational data is also important for the success of a business, in addition to market and product data. Sharing internal operational data can help a company identify gaps and improve the customer experience.

Dr. Chanda Macias, National Holistic Healthcare CEO, discussed how functional silos can boost production efficiency by tracking metrics from product development to delivery.

It's also important to determine the appropriate timeframe for evaluating the performance of an operation before deciding to continue or shut it down, as noted by Scott and Rungta.

Darin suggests setting guard rails in advance when making decisions on piloting projects. This means giving it a set time frame, such as six months, with specific benchmarks to meet. If those benchmarks aren't met, then it's time to reassess or make changes.

Curaleaf highly focuses on quality and innovation when it comes to launching new products and using data is key to ensuring they choose the right product innovations, according to Darin.

Dr. Macias emphasizes the importance of avoiding disruptions in the supply chain. Automation and integrating manufacturing technology with ERP (enterprise resource planning) systems can help manage various systems such as fertigation and irrigation systems. Without proper integration, there can be backorders and the need to artificially increase production.

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Photo by Riccardo Annandale on Unsplash.