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Explaining the Process of Cannabis Supply Chain Development

Productivity and efficiency directly affect a company’s bottom line. From maintaining product quality to meeting consumer demand, an effective supply chain improves all aspects of business operations. In addition, effective cannabis supply chain development creates agility so brands can pivot operations when faced with the unexpected. 

These operational requirements are particularly critical for the cannabis industry, where dynamic compliance requirements and product cultivation directly impact daily operations.

Let’s dive into the cannabis supply chain development process and how each stage of development can support your company’s overall objectives. 

Global Sourcing Analysis

Successful cannabis companies balance ever-evolving compliance considerations while meeting growing consumer demand and ensuring customer satisfaction. Cultivating relationships with high-quality suppliers is a key element of creating that balance. 

The first step of effective marijuana supply chain development is conducting a global sourcing analysis. It’s essential to find suppliers that are aligned with your company’s values and share your commitment to quality and compliance. 

Breaking this data down by region gives your business a realistic framework for production capabilities and helps you find efficiency improvement opportunities. Also, sourcing a network of compliance-minded, trusted suppliers reinforces a positive brand identity. 

Supply Chain Forecasting

Forecasting plays a vital role in a cannabis company’s supply chain development. Predicting fluctuations in consumer demand and anticipating supply chain disruptions are more important than ever before. Forecasting gives businesses the insights they need to implement dynamic cannabis supply chain solutions. 

Common forecasting considerations include:

  • Average product turnover rates 
  • Supplier lead times
  • Seasonal sourcing fluctuations
  • Product transit times and limitations
  • Storage costs and warehouse efficiency

A supply chain consulting firm can leverage innovative technologies to create targeted supply chain forecasting models suited to your company’s requirements. 

Procurement and Planning

Procurement and planning are the next steps of the development process. At this point, production needs are recognized and streamlined while production standards and timeframes are determined. This stage equips your business with the goods and services it needs to execute efficient business operations.

Supplier Validation

Verifying vendors is a critical next step. This process is used to confirm that your company only partners with credible suppliers and third-party vendors. Supplier validation protects your bottom line and product quality standards by ensuring vendors are living up to their quality and compliance claims. 

Risk Profiling and Facility Scoring

Risk profiling can help you determine how risk-averse your operations are and help you optimize your asset allocation strategies. A comprehensive risk profile is used in conjunction with a supply chain operations reference (SCOR) model to evaluate the efficiency, consistency, and reliability of a company’s supply chain management. This score sets operational standards for the supply chain management framework. 

Resource Redundancy Planning

If the pandemic has taught businesses anything, it is this: Resource redundancies are critical for successful operations. A targeted resource redundancy plan ensures your business has the supplier network and resources you need in the event of production disruptions and other challenges.

Customized Project Reporting

Customized reporting gives you better insights into the macro and micro aspects of your supply chain management capabilities. In addition, these reports allow you to communicate effectively across cross-functional teams and ensure transparency for your production capabilities, project scope, timelines, and budget.

Supply Chain Strategy

Once you’ve developed the supplier network and analytic structure you need, you can create a comprehensive supply chain strategy. Think of this strategy as a roadmap for creating products and getting them to consumers. 

A comprehensive supply chain strategy creates strategic advantages by focusing on customer-centricity, predictive maintenance, automation, and visibility. These elements help brands anticipate consumer demand, scale operations accordingly, and make dynamic pivots, all while boosting efficiency and profitability. 

Continued Supply Chain Management

Beyond product ideation, production and delivery, there are several ongoing supply chain management processes to consider. Effective R&D protocols are imperative for cannabis industry production. These protocols should be paired with rapid prototyping, kitting and assembly capabilities, and quality control assessment and reporting. 

Comprehensive cannabis supply chain management also includes freight, warehouse, and distribution management. Route planning, cost analysis, inventory management, and distribution fulfillment strategies give businesses the framework to scale operations successfully for this growing industry. 

Trust the Calico Group

Our operations place an importance on quality and compliance. With decades of multinational cannabis supply chain experience, our expert team is ready to develop supply chain solutions for your business. We use advanced technologies to predict challenges and leverage our global network to overcome these changes.

Contact the Calico Group to schedule your consultation today. 


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