240 Logistics: Weekly – May 13, 2024
We are so excited to be launching our very first edition of our 240 Logistics weekly newsletter!
Every week we will be rounding up insightful content and featuring exclusive FlyWheel data, to help you improve your cannabis supply chain, and level up your business.
This week you can look forward to:
Let's jump in!
In the rapidly growing cannabis industry, effective inventory management is essential. That's where FlyWheel comes in – A state-of-the-art platform designed to empower dispensaries and cannabis brands with intuitive features and insightful data analysis.
Every week, we will be delivering insights from our FlyWheel dashboard, providing you insights into the week's data.
This week we saw:
The Current State of Cannabis Logistics
The term “building the plane while flying it,” gets used a lot in the cannabis industry. It rings particularly true, when it comes to cannabis logistics. With a market as fragmented as the cannabis industry, compounded by unreliable technology, navigating logistics can feel like traversing uncharted territory.
Logistics in the cannabis industry manifests in various forms:
The current cannabis logistics infrastructure isn’t just ineffective, it’s expensive for all parts of the supply chain; from grower to consumer. Let’s dive into several pain points that require further discussion:?
Technology?
After Dutchie went down for many of their retail partners on 4/20, 240Logistics CTO Tim Schmitt highlighted the current state of cannabis technology, emphasizing the need for change:?
This situation highlights a reality in our industry—we're often dependent on major software providers who were early to market. Consequently, brands and retailers must make do with the limited tools available in the cannabis sector.
Addressing such inefficiencies was a primary motivation behind creating FlyWheel? —our proprietary software at 240 Logistics, designed to equip you for any challenge the industry faces.
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Because of the newness of the cannabis industry, the foundation of our industry is technology that was adopted because it was the only one available, not because it was the best option. While other industries get the benefit of operating with systems that have been refined over years, current day cannabis technology has come to market almost without competition.?
While the inefficiencies of these systems continue to make front page news, it’s important to note that not all of these problems are of their own making, and many have done the best with what has been available to them.
Unique Market Regulations
Because cannabis is currently regulated on a state-by-state basis, that lets local governments make the laws around the buying, selling, and transportation (both B2B and B2C) of cannabis, every state has a unique infrastructure surrounding their cannabis logistics. This decentralized approach has resulted in a fragmented landscape characterized by a multitude of logistics companies and operations. For businesses operating in multiple markets, this patchwork system poses significant challenges, contributing to a disjointed supply chain within the industry
Companies who do enter into cannabis logistics are required to acquire costly licenses, and maintain strict compliance practices, while simultaneously leveraging their operations on shaky technology. Often, the technology isn’t even built for market-independent transportation partners, with many having to rely on handshake agreements, and text message exchanges to facilitate business, adding further complexity to an already intricate process.?
Supply Chain Inefficiencies
The current cannabis logistics systems aren't just inefficient; they're also costly for everyone involved, from the growers to the consumers.
Consider this situation – Archie’s Edibles and Loli’s Vapes are producing products 1 block from one another. Both Archie’s Edibles, and Loli’s Vapes have their own delivery drivers that service their retail partners. Because both brands service the same 5 stores, these drivers often end up at the same gas stations, making consecutive deliveries, and even staying at the same motels for longer trips. Worse, each individual truck isn’t even filled to complete capacity.
Now let's consider the implications of this scenario – Both Archie’s Edibles and Loli’s Vapes have to pay for the delivery truck, for the truck’s insurance, fuel for the truck, and for all associated costs for each individual driver, including their salary, their meals, lodging, etc. These unintentional costs add up fast and are passed throughout the entire supply chain.
For the retailers, this translates to multiple deliveries, multiple invoices, and extra administrative work. It's a logistical nightmare that leads to inefficiencies in delivery and inventory management.
Discover FlyWheel
Now, imagine you’re a retailer and you’re able to map out your inventory so efficiently that you have complete transparency and control over your inventory management. You are finally able to make smart decisions on everything from inventory management to staffing needs, while reducing unnecessary supply chain costs and harmful emissions.?
In this future state, there aren’t just less days with 16 unexpected deliveries, but there are fewer deliveries overall because of intelligent and sustainable practices that save money for everyone along the supply chain; from the brand, to the retailer, to the end-consumer.?
The good news is that the future is here with technology that puts the power of supply chain management back into the hands of the business leaders, and reduces the ambiguity that comes with operating in a market with a blind supply chain.?
Interested in learning more? Reach out today to schedule a demo.?
Want to learn more about our Centralized Buying program? Reach out to [email protected]
Jump into the future of cannabis logistics, while deciphering post-420 data from across the United States, with 240Logistics Customer Success & Training Specialist, Michael Hosty . Find the complete recording here.
Interested in learning more? Check out our resources:
Ready to get started? Reach out to [email protected] to get started today.