The marijuana industry is laden with many complications, among them the ever-changing marijuana regulations. This has complicated the process of getting the legalized weed in the market. Besides, only companies with a robust supply chain system will remain competitive and maintain their dominant position in the booming marijuana market. The cannabis sector is also experiencing some problems from the startup supply chains, whereby companies that are vertically integrating the seed-to-sale process wholly eventually become a one-stop-weed-shop. However, the quality and supply of marijuana are compromised due to a lack of proper infrastructure to implement the business strategy.
Discussed below are five reasons why companies should partner with third-party supply chain management companies.
- Maintains Consistency
Consistency is what creates a brand. And without a brand, a company cannot win over or maintain a market share.
Cannabis companies should manage every aspect of their supply chain. To achieve consistency, the cannabis company should work with a 3rd party entity to monitor marijuana cultivation, growth, harvesting, extraction, manufacturing, packaging, and distribution of all its products. Through this, the company is informed of the kind of products their clients are going to get.
- Rise Above Other Companies with Ease
With the help of a robust supply chain management company, a marijuana company can improve its operations while structuring costs. The supply chain management company helps marijuana companies with critical elements that are vital for the rapid growth of the company. These essential components include efficiency in its operations, negotiation skills, and expertise in logistics.
By hiring third-party supply management, the cannabis company frees up most of its resources, which makes it possible for it to invest in machinery and new technology.
- Implements Strict Quality Control Measures
The marijuana industry has been faced with negative perceptions for several decades now, and reinventing and educating people about the benefits of marijuana is not a small task. Lack of federal laws governing marijuana means there are no measures for quality control hence the presence of harmful and illicit marijuana being sold in the market.
Partnering with a third-party supply chain company ensures that the marijuana company can control the quality of its products through a distinct standard operating technique that includes streamlined processes and automation. This helps marijuana businesses establish a clear path out of the stigma linked to pot.
- The Third-Party Supply Management Teams are Highly Experienced
The legal marijuana sector is still new and the marijuana companies are still learning how to manage their supply chain department as well as the amount of budget to apportion to new talent.
Partnering with a third-party management company gives weed companies access to a team of experienced professionals capable of providing them with quality services.
- Easily Complies with the Regulations
It can be quite a challenge for new marijuana businesses to comply with the constant changes in the marijuana industry regulations. New marijuana companies should therefore make a point of hiring a third-party supply chain manager to help in maintaining the company’s compliance mechanisms. The third-party company is also responsible for ensuring that the company products adhere to the federal legalization testing by the FDA and USDA.
It is believed that established marijuana companies like Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) and SinglePoint Inc. (OTCQB: SING) have mastered all the supply chain issues plaguing startups and that is why you will never hear them entangled in compliance problems with regulators.
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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