What the Cannabis Industry can Learn From Floriculture

Posted on March 09, 2018 by Cassandra Smallman


With recent regulatory changes already taking place, there is a great deal of excitement across North America in the emerging cannabis industry. Without a formal history of how cannabis is marketed and sold, there is a unique opportunity for the industry to thoughtfully develop processes that are effective and sustainable for future growth. Considering what works in similar markets is a wise strategy, and there is unlikely a better example to compare the cannabis production and commerce to than the floral industry. By examining what works in that space, licensed cannabis producers and processors have the opportunity to manage their supply chain efficiently from day one.

Comparing the Supply Chains

There is a distinct comparison to made between the floral industry and the cannabis industry; they are both plants after all. The floral industry has a well-established globalized supply chain that has had to embrace innovative supply chain solutions in order to overcome short transportation windows. While floral producers grappled with refrigerated shipping and storage, the cannabis industry will face their own supply chain restraints with strict legal regulations and security requirements.

The Fresh Floral Industry has a complex international supply chain with government enforced regulations. For decades the floral industry has been supporting a complex supply chain with growers, shippers, breeders, and brokers just to name a few. This complex supply chain has taken its toll on profit and quality of the products themselves. The floral industry is now turning to new technology to reduce redundancies and regulate the cold supply chain to maintain a higher quality product for consumers.

The Cannabis Industry has an increasingly complex supply chain With wholesale suppliers, seedling nurseries, licensed cannabis producers, and processors, there are many logistics to manage to get the product ready for the distributors. As the industry expands, the risk of establishing an over-inflated supply chain becomes greater. Technology that increases collaboration between all levels of the supply chain offers the cannabis industry an opportunity to avoid issues the fresh floral industry is currently facing.

The Value of Collaboration Through Technology

No industry can afford an overinflated supply chain in today's highly competitive economical landscape. For the past decade, supply chains have been shrinking to reduce costs and better serve the consumer. Technology has been an integral part of the shift toward a more efficient supply chain. Leaders in the floral industry like Rosa Flora have been adopting supply chain technology to improve inventory visibility with their partners. Collaboration has never been more important in the B2B world.

“Companies that use cloud-based business-to-business electronic integration technology report that it’s easier to do business with customers,.” Source BizTech

Collaboration through technology offers all members of a supply chain the benefit of new efficiencies. Supply chain technology, like LinkGreen’s web-based platform, that manages the exchange of inventory and order information help to minimize errors and reduce the time spent that a manual process creates.  

Early Investment For Long-Term Success

The cannabis industry has an excellent opportunity to get their inventory and order management process streamlined immediately while the industry is still in its infancy. Manual administrative processes will stunt producers ability to scale as demand increases. By eliminating communication barriers between licensed producers, processors and distributors, the entire industry will benefit by establishing a supply chain in which all stakeholders work collaboratively. To meet the increasing demands of their product LinkGreen’s supply chain solution offers complete inventory visibility and collaboration between licensed producers, processors and distributors. These are two vital ingredients for an industry that has its sights on growing exponentially.

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