In the cannabis industry, supply chain is king. And lately, the king has been having some serious health issues. Supply chain issues have caused major disruptions in the dispensary supplies market, leaving entrepreneurs struggling to find a consistent source of product.
This blog post will explore the causes and effects of these supply chain disruptions, and offer advice to cannabis entrepreneurs on how to navigate these difficult times.
Prices Have Skyrocketed
Whenever there is a demand for a product but a shortage of that product, prices will naturally go up. This is what we are seeing in the cannabis industry right now, as well as pretty much every other industry in the world.
As distributors are having a hard time delivering the products to customers because of shortage in staff or closures, they must raise prices to match the loss of income.
The rise in cost means that dispensary supplies have to take on the extra costs, causing them to raise their prices as well.
The supply chain might seem like it involves a lot of moving parts, but when one part is disrupted, it can cause a domino effect throughout the entire system. This is what we are seeing right now with the supply chain issues.
Basic Supplies Have Dwindled
It's not just that the vaporizers or pipes themselves are becoming harder to get, that is also true, but it's the parts that make these dispensary supplies that are getting harder to find.
That's why dispensaries are noticing a lack of basic supplies in their stores because the pieces that make up these parts are hard to find.
When the company who makes papers and packages them is having trouble getting their supplies to even make the product, dispensaries are going to be the ones who suffer.
Until the world opens up more fully or machines are implemented to make up for the lost time, dispensary supplies will continue to be harder to manage.
Lack of Experience Compounds Issues
Supply chain issues haven't been nearly as big of an issue for larger companies because they have the resources to combat them.
But for smaller businesses, these disruptions can be crippling. Smaller businesses don't have the people in place who have dealt not only with dispensary supply chain issues in the past but have also dealt with the regulatory standards in the US.
Lack of experience and lack of resources makes it hard for dispensaries to find new sources of product, or even to keep their doors open.
Not having the personnel who can handle this unique situation can be a death sentence for some of these businesses. The truth is that it may take a while before the cannabis industry is able to face hardships like these and still come out the other end unfazed.
Waiting Times Have Increased
Making an order for dispensary supplies today isn't the same as making it two years ago.
In fact, the waiting time for an order could be up to a few months at this point. That's because so many distributors are out of commission and the ones who are left are being bombarded with orders.
It's not just that you have to wait for your product to come in, but you also have to factor in the shipping time.
This is causing dispensaries to have to stockpile dispensary supplies, which in turn is driving the prices up even more.
If you want to keep the doors open and have the product to do so you'll want to order well in advance so you can be sure you have what you need.
It will be harder to manage inventory at first because you'll need to adjust your system but the sooner you have that implemented the better.
Product Becomes Inconsistent
In these trying times with supply chain issues you may need to look harder to find the products you are used to getting.
This is because, as mentioned before, distributors are being forced to send products that might be from different parts of the world. This can mean that the product you're used to might not be available in the near future.
You'll have to look for alternative vendors if the company you're working with can't deliver what you need.
That means you'll end up having some new product in stock or similar products but from different manufacturers.
You'll want to be careful about placing just any product on your shelf because the quality could be inferior and your regulars will definitely know the difference.
Supplies Have Become Stagnant
When you can bring something new into your dispensary your customers will get excited and interested. The problem with cannabis supply chain issues is that you won't be able to display any new products that you may have.
Dispensaries are getting the same products from the same places and that means that the novelty of those items has decreased.
This could lead to a decrease in sales because customers will want something new to get them excited about your dispensary again. The cannabis supply chain issues make it difficult to source new products because most manufacturers are just producing what they can and aren't worried about developing new products.
Cannabis Supply Chain and Dispensaries
Dealing with cannabis supply chain issues have become difficult for dispensaries since the pandemic hit but that doesn't mean businesses can't succeed during these times. Since all dispensaries are going through similar issues, if you can find ways to get product when others in your city can't, you'll build a bigger fan base faster.