Buying weed Suez

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Buying weed Suez

Before we discuss the supply chain issues in the cannabis industry, we want to start on a more positive note. The cannabis industry has had some pieces of good news lately. The global pandemic is showing signs of improvement which is leading to more business opportunities. There are also promising signs on the federal legislative front. And as new states come online with both medical and recreational marijuana programs , there will be a concurrent need to ramp up the infrastructure of the cannabis industry to meet the increased demand in these states. But supply chain issues in the cannabis industry may throw a wrench in some plans. Essential equipment may take longer to acquire and prices may rise for a number of reasons. Fortunately, with some planning and guidance, operators in the cannabis space can avoid painful and often expensive delays. This is the most basic of the supply chain issues in the cannabis industry. Raw materials are scarce in a number of areas. The first has to do with the most common metal frequently used for both building construction and in the equipment used in the cannabis industry: Steel. The second concerns petroleum products and all of the derivative products that rely on petroleum as a key component. Other raw materials and key components of note include a shortage of nickel which is used in semiconductors and batteries, as well as being a key component in stainless steel. Nitrile and some related rubber products from China and Malaysia are also in short supply more on that below. Steel is a key component of equipment found in every aspect of the cannabis industry. Steel is also a key component for the construction of new buildings. Steel is everywhere. But, unfortunately, steel is in short supply and prices are surging. Understanding why we are experiencing shortages is a bit more complicated. While these economic conditions are a boon for steel manufacturers, those companies that need steel to produce their products are facing longer lead times and skyrocketing prices. Part of this stems from tariffs on steel imposed by former president Trump beginning in This was done to protect the US steel industry. This includes being almost double the price of Chinese steel imports. Compounding the problem is that steel supplies remain low abroad as demand continues to rise. Add in some of the logistical problems we will discuss below and you have a recipe for rising costs and extended lead times for delivery. Petroleum products i. But as you have probably seen at the gas pump, oil prices have been on the rise. Part of this is simply a seasonal effect as refineries shift production from different grades of products. But some of the issues have to do with the difficult winter that the US experienced that was then capped off by a bad run of nasty Spring weather in the Gulf of Mexico and Southern United States which caused disruptions in production and refineries along the Gulf of Mexico. And as we slowly re-emerge from COVID quarantine protocols, pent-up demand for travel in the US will continue to drive demand upward. So, with reduced supply and increasing demand, we find ourselves again in a position of rising costs and lengthening lead times. Cargo ships unloading containers at port. The US imports many of the products used by the cannabis industry. That means that they often have to be shipped from overseas, received in US ports, and then distributed from there. As you probably already know, in the US, we import much more than we export. That is, we have more goods and materials coming into the US than we are sending to other countries. Most of this international commerce involves container ships. These containers are then loaded onto railcars or trucks to be delivered across the country. Once all those individual containers have been dispersed across the nation, how do they get back to where they are needed i. We wish that the solution was easy: We just pack the empty containers with goods that the US is exporting to Asia. The answer is complicated. Although it is expensive, it has become more profitable for shipping companies to ship empty containers on a return voyage. This has caused another issue in creating container shortages for US agricultural exporters. One of the biggest news stories of March was the case of a cargo ship blocking the Suez canal for nearly a week. Ironically, it was estimated that ships were blocked from using the canal during this time which led to a major disruption of global trade. While this extreme incident grabbed the headlines, there has been congestion at major shipping ports in the US for nearly the entire duration of the global pandemic. Traffic jams at major ports and truck driver shortages are adding to the supply chain challenges. There is a shortage of truck drivers as well. In , the trucking industry recorded a record shortfall in the number of truck drivers required to meet demand. Better technology aimed at monitoring the driving hours of long-haul truckers is to blame for some of the issues. But with new electronic monitoring, the extra capacity that might have been gained by driving more hours than legally permissible has virtually disappeared. Without truck drivers to deliver them, these containers are often stuck in a logistical traffic jam that can take weeks or months to resolve. As more states open up their legal cannabis markets, cannabis operators will need to increase their production to meet demand. In just the last year, we have seen a flurry of states adopting new medical and recreational marijuana legislation. And cannabis operators are preparing to ramp up to meet this expected increase in demand. This means that the most common and popular pieces of equipment and supplies are also becoming hot commodities. Existing facilities are expanding and new facilities are being planned to meet the new demand. This trend is true for all phases of the cannabis industry. Cultivators are trying to increase their output of biomass. Extraction specialists and manufacturers of cannabis products are ramping up production. Dispensaries are gearing up for increased traffic and demand by increasing their staff and trying to ensure that they will have sufficient products to meet consumer demand. This trend will continue for the next several years as new states come online both with medical and recreational marijuana programs. So while some of the other factors driving supply chain issues may abate, consumer demand will continue to increase. And this will likely mean that there will be some shortages or delays for specific products or raw materials. Your supply chain partner can help you plan ahead to ensure product availability and save you money. And then double it again. But the sentiment still holds. You need to plan farther in advance than you probably think. It also involves contingency planning. What happens if the items you need are late? Or worse, what if they are unavailable altogether? Working with multiple vendors to coordinate deliveries can be challenging. First, you should identify items that are on the critical path for your project. For example, if racking or lighting ballasts need to be installed before work on the rest of the project can continue, then these items are on your critical path. If you do not have these items, work cannot continue. You could be wasting money as employees and contractors are stuck waiting on your items to be delivered. This may be difficult for some cannabis operators to swallow. Budgets are often tight. And financing is still difficult to come by at best. So buying supplies before you need them may be challenging for some cannabis operators. But understanding where the pinch points are on your key items and then buying ahead can help in two ways:. Buy ahead to ensure product availability when you need it. Buy ahead to save money on products whose prices are going to increase as shortages worsen. The airline industry does something like this with fuel purchases. Buying now for future use could save you money. This strategy works best on items where you can forecast your usage rates. Nitrile gloves are a great example of this phenomenon. Nearly all cannabis operators use disposable gloves in some form or fashion. Nitrile gloves are popular for their durability and chemical resistance. However, nitrile itself has become in short supply around the world. This shortage is projected to continue over the next year. And as a result, prices continue to increase. So if you are able to stock up on nitrile gloves now , you can be sure that you have them available for your critical processes. And you can save money by buying them more cheaply now than buying them later at a higher price. While they are not as durable and do not stand up to chemicals as well, they can be an alternative for processes that do not require the rigors of a full nitrile glove. Plus, they are less expensive than a full nitrile glove and more readily available. A good supply chain partner can help you navigate the most serious supply chain issues in the cannabis industry. While this may seem a bit self-serving, given that our company is a supply chain solution provider for the cannabis industry, we have seen the tangible benefits of collaborating with some of the largest cannabis operators in the US. A good supply chain partner can help you with procurement , distribution , and planning for your cannabis operation. A good supply chain partner will likely be working with multiple cannabis operators, all with similar needs for basic items. Through collective purchasing power, a supply chain partner can help to navigate some of the thorniest supply chain issues in the cannabis industry. And even when specific items or brands are not available, your partner should be able to recommend alternatives that will help you keep your business chugging along with minimal disruption. And we are constantly on guard for anything that could disrupt the flow of goods to their customers. Being a good supply chain solution for the cannabis industry means being a trusted advisor that helps you to look out for your business. Like it or not, supply chain issues in the cannabis industry are going to be with us for quite a while. But with some planning and a good partner, you should be able to not only survive these challenges but thrive. Dec 9 Written By Jake Dougherty. Raw Materials Shortages This is the most basic of the supply chain issues in the cannabis industry. Steel Steel is a key component of equipment found in every aspect of the cannabis industry. Petroleum Products Petroleum products i. Logistical Issues. Legalization Drives Demand. The Best Defense is Good Planning. Some key points to remember : Start planning earlier then you think you need to. Build in contingencies into your schedule, just in case. Buy Ahead This may be difficult for some cannabis operators to swallow. But understanding where the pinch points are on your key items and then buying ahead can help in two ways: Buy ahead to ensure product availability when you need it. Forecast Your Usage. Conquering Supply Chain Issues in the Cannabis Industry Like it or not, supply chain issues in the cannabis industry are going to be with us for quite a while. Jake Dougherty.

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Buying weed Suez

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Buying weed Suez