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420 with CNW — 4 Powerful Lessons Marijuana Extractors Learned During the Pandemic

When the Covid-19 pandemic broke out, the hemp and marijuana industries took a huge hit because they relied on overseas sources, particularly China, for everything ranging from processing equipment to cartridges and even carrier oils. If marijuana processors were to stay in business, they needed to change things fast. We discuss below some of the key lessons that extractors learned as the pandemic raged on.

Diversifying Supply Sources

Clear Cannabis, a Denver-based manufacturer of CBD and THC concentrates, saw its supply chains disrupted in a major way. The board chair, Richard Batenburg, explains that they had to take a hard look at every aspect of their supply chains and then look for options to plug any gaps observed. He adds that they diversified their suppliers to such an extent that where they initially had four suppliers, they bumped them up to sixteen.

This approach to diversifying supply sources has helped extractors to maintain robust supply chains amidst the uncertainties brought by the pandemic.

Streamlining Processes

Another vital lesson was the importance of streamlining processes in order to shed any avoidable step or procedure. By looking for ways to streamline their processes, extractors were able to find opportunities to implement automation in addition to saving time. Streamlining processes can also reduce personnel demand.

For instance, Clear Cannabis opted to merge the operations of the design team with those of the packaging team so that less time was spent waiting for designs and then proofreading them before they are approved.

Overhauling Delivery Systems

Marijuana extractors quickly realized that their headaches didn’t end with sourcing inputs. Instead, a whole new dilemma presented itself in the form of how to deliver finished products to clients. For instance, products would remain stuck at shipping hubs for much longer than was expected and clients would repeatedly call asking about their shipments.

To deal with this problem, extractors learned to switch from standard shipping to priority shipping. While this added costs, it ensured that products were delivered on time.

Putting Employees First

Concerns about employee safety also made cannabis extraction firms to make changes and intensify their focus on putting employees first. For some, this translated into abandoning the top-down management system to one in which power was delegated downwards and small teams worked almost independently.

Oregrown, an Oregon-based extraction firm, says that they started having what they called “management councils” entailing holding separate meetings with various divisions of the firm. The surprising result of making this switch was that teams became more productive since they didn’t always have to wait for “orders from above.”

Not surprisingly, many of these adaptations are likely to last long after the pandemic is gone since they have changed operations for the better.

Having lived through the worst of the pandemic, industry players like Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) are certainly better placed to navigate future crises if they ever occur.

NOTE TO INVESTORS: The latest news and updates relating to Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) are available in the company’s newsroom at https://cnw.fm/PULL

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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