How to Manage Supply Chain Challenges During a Crisis?

A quarantined workforce and a shortage of crop care workers have further impacted supply issues. The cannabis industry faces issues like inventory visibility and a lack of alternate vendors.

Fremont, CA: The COVID-19 pandemic has caused supply chain disruptions, affecting cannabis businesses despite government restrictions. Despite logistics issues and supply scarcity, Cannabis ERP software has helped manage these challenges, ensuring continuity and trust in the supply chain for customers.

How is the cannabis supply chain affected by COVID-19?

Global supply chains have been upset by the pandemic, leading to supply shortages, production slowed down, factory closures, shipping delays, and changes to transportation routes. A quarantined workforce and a shortage of crop care workers have further impacted supply issues. The cannabis industry faces issues like inventory visibility and a lack of alternate vendors.

How a cannabis ERP software solution can help

An industry-specific ERP system can aid in the cannabis industry's effective supply chain management during disruptions like the COVID-19 outbreak or natural disasters.

1) Constant inventory control, monitoring, and efficient material planning

Cannabis companies can utilize a real-time tracking system to manage inventory movement and storage, providing crucial data for accurate analysis of future requirements and procurement guidelines. The system's centralized database includes vendor lead times, shelf life, and production timelines, enabling efficient planning and purchasing. It also tracks customer purchasing fluctuations, reduces supply shock, and analyzes previous hardships. Automated testing protocols ensure quality standards are met.

2) Maintenance of supplier information and rankings –

A cannabis ERP solution manages supplier and item-specific details, fostering strong vendor relationships and managing risk levels. It provides accurate information on sanitation programs, security measures, and physical distancing policies, ensuring quality raw materials. The solution maintains a list of approved suppliers and vetted alternatives. It allows quick identification and replacement of vendors based on preference and risk level, enhancing supply chain visibility and safety assurance.

3) Establishment of supplier transparency through audit rights and communication –

An ERP system manages supplier transactions, enabling audit rights and financial viability evaluation. It collects data on price points, historical transactions, lead times, and quality control results to identify trends and build risk assessments. Real-time issues can be identified, prompting communication with suppliers. Transparency and open communication are crucial for vendor analysis. A centralized ERP system helps manage supply chains during crises like COVID-19.