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How to Leverage Data Tools to Create a Superior Supply Chain

Jun 2, 2020 4:07:41 PM / by Caitlin Pellas

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The cannabis industry today is relatively young and far less efficient than other more mature industries. Piecemeal tools have been built to address specific issues as they emerge instead of addressing the root cause of industry-wide problems head-on. Much like patching leaks in an old boat over and over again — eventually, that boat is going to sink. For the cannabis industry to survive and thrive, purposely built infrastructure is needed to create industry-wide solutions. This purpose-driven mission was the catalyst for us building our BrandTreez and AskTreez content and data engines.

Naturally, data was a key player in the development of this vital infrastructure. Without it, infrastructure can only be built reactively since there is no clear picture of what is working in the supply chain and what isn’t. Players that opt-out of utilizing data to drive decisions will be overtaken by their competition since they’ll be able to offer lower prices or more services due to their efficient, cost-savings business models. These cost-saving models are needed to survive in today’s overly-regulated, overly-taxed environment. 

When retailers, brands, and distributors share data amongst themselves, they create visibility and transparency, which breeds trust and makes it easier to collaborate towards industry-wide solutions. Taking a big-picture approach to solving pervasive problems will streamline the end-to-end supply chain. We took this big picture approach when we built BrandTreez and AskTreez and when brands and retailers leverage these powerful tools and dashboards, they can collectively create efficiencies that will thrust the industry forward. 

Improved Inventory Management

Making purchasing decisions based on shared data will reduce stockouts, lessen preferential channel stuffing, and make just in time (JIT) inventory a reality. Establishing processes and schedules for sharing data between retailers, brands, and other partners will ensure that purchasing decisions are driven by demand, improving inventory management and communication efficiency throughout the supply chain. Dive deeper here.

Enhanced Branding and Retail Synergy

When retailers and brands use customer and location data to define shared target customer types and collaborate to reach those target customers, it creates coherence for both the retailer and the brand. The retailer is now more appealing to its target customers and the brand is now on the shelves of a retailer with the same targeted demographics, improving brand recognition and retail synergy. Dive deeper here.

Stronger Connections Between Brands and Retailers

Sharing data between partners creates a sense of transparency, which leads to a circle of trust. Trust enables co-beneficial partnerships and improved relations between brands and retailers. When brands and retailers trust each other to act in the best interest of the partnership and of their shared customer base, they will do more volume together, opening the door for retailers to negotiate Vendor Managed Inventory (VMI) partnership agreements and fostering more productive conversations throughout the supply chain. Dive deeper here.

Supply Chain Simplicity

The cannabis supply chain is anything but simple right now, but as the market evolves, more and more tools are becoming available to help brands streamline operations. Real-time reports and analytics generated through AskTreez allow brands to identify ever-evolving industry trends to inform production decisions on existing and future product lines. These insights also provide a cue for brands to reach out to their retail partners and proactively arrange reorders to avoid stockouts. Empowered by data, brands, distributors, and retailers alike can inform and simplify the production and reordering process and strengthen collaboration across the entire cannabis supply chain. Dive deeper here.

Reduced Labor Needs

The current instability and unpredictability of the market mean that the average cannabis retailer is dealing with a large number of vendors who all have unique schedules and processes. There is an overload of communication around maintaining the buyer-brand relationship that’s driven by the lack of real-time data exchange. As a result, retailers need to keep full-time buyers on staff to manage the sheer volume of logistics surrounding inventory ordering. Relying on data to drive purchasing decisions instead of buyer-brand relationships will produce a more consistent, valuable exchange of information, reducing labor needs for both brands and retailers. Dive deeper here.

Regular exchange of data between supply chain partners will continue to drive the build of infrastructure that is needed to create industry-wide solutions. Solving pervasive supply chain problems will help to stabilize the cannabis industry, making it less likely that brands and retailers will suffer fatal consequences because they lacked actionable insights. 

Be part of the solution by incorporating AskTreez into your management playbook. If you’re already powered by Treez and are interested in adding AskTreez to your account, reach out to your Customer Success Manager for details! If you’re not yet on Treez but want to join the only software ecosystem developed to power modern cannabis, click here to set up a demo.

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Topics: data, BrandTreez, AskTreez

Caitlin Pellas

Written by Caitlin Pellas