Not all procurement solutions are created equal, and this is especially true when assessing the right procurement software for your cannabis operation.

We see it all the time: cannabis business owners working 2x as hard to force traditional purchasing software to fit the operational and financial structure of their business. And while it doesn’t seem like a big deal at first, deploying procurement software that is not built to manage the specific challenges of the cannabis industry can cause you endless problems over time.

Got A Cannabis Software Hangover?

We get it – a lot of operators have PTSD from cannatech (more on this in future posts). As an emerging industry, cannabis had to be nimble with its tech development, and many of the systems still used by cannabis operators were built in the early days of the industry to suit specific niche issues unique in that moment (i.e.: Seed-to-Sale, Track-and-Trace, inventory management, POS etc.). 

However, these systems were not necessarily built to handle the sophistication of the industry we know today. Adding to this complexity, as the cannabis industry matures, operators are seeing the value of pairing their required cannatech with software originally designed for more traditional industries. But the world of traditional software does not always integrate well with the quirky infrastructure of cannatech, resulting in disjointed systems, clunky integrations, and manual workarounds.

In an ideal world, you would have a system built by cannabis experts but developed with the sophistication of traditional software. That is exactly what you get with the MainStem Procurement Platform. We hired software ninjas from traditional industries and paired them with cannabis gurus to create a platform built expressly to manage all aspects of cannabis procure-to-pay workflows.

So why does this matter? To understand why we built MainStem the way we did, we need to understand the unique factors that create sourcing, purchasing, and supply chain management challenges for the cannabis industry:

1. Maturity:  For decades, the cannabis industry relied on an inefficient, fragmented, and at times, illicit supply chain infrastructure. And, while most states have some aspect of legal cannabis sales, as long as the industry remains federally illegal, inherently, operators are going to encounter inefficiencies, roadblocks, and daily hurdles as they try to run their operations. Although this means we have all been flying by the seat of our pants (despite being a nearly $17 billion industry), we have a huge opportunity to define our own future. As an emerging industry coming out of the shadows, the cannabis industry already knows how to learn from the failures of traditional solutions and has the chance to build and adopt streamlined technologies that can be scaled to fit the specific demands of the industry – now and into the future.
2. Rapid Growth: Expanding legalization over the past few years has created rapid expansion across the industry, but along with all the good stuff, this growth has dramatically increased the complexity of supply chain management for cannabis companies.  With this complexity comes an increasing disconnect between supply and demand, resulting in more time spent on procurement and more potential for unregulated overspending. As more supplies across more states are needed, procurement teams spend a ridiculous amount of time sourcing the materials, while accounting teams and leadership struggle to get visibility into the full inventory and budget. This is messy all year round, but downright painful during tax season.
3. Compliance: No matter where you do business in the cannabis industry – compliance is always a critical factor in how you manage your operation.  This is probably the biggest deficiency when using traditional software. We all know that cannabis is the most highly regulated and transparent supply chain, and no other business model needs to consider the same level of restrictions that cannabis operators manage every single day. Retrofitting traditional software into compliant workflows of a cannabis operation can require creative workarounds and lead to diminished efficiency.
4. Disjointed Process = Zero Visibility: Gaining visibility into the company’s procurement and spend across the entire supply chain requires the connection and centralization of data and processes. This has been a challenge for cannabis operators and happens primarily because companies still work with a disjointed, and often manual, finance and operations technology ecosystem. Many operators are not using procurement software at all and are managing their procurement through spreadsheets and manual entry across multiple locations. This procurement management system is incredibly vulnerable and open to errors, duplication of orders, lost data, and missed or miscoded payments. If you are using traditional procurement software, it won’t seamlessly connect to your Seed-to-Sale system and in most cases, can’t roll up procurement data and activity across a multi-entity operation. Other procurement software companies structure their licensing by location. This is problematic for cannabis operators for several reasons. First off, it can get really expensive to keep adding location licenses if you are a growing enterprise. Secondly, it means your data stays at a location level, making it harder to get visibility across your entire footprint.  

The MainStem Procurement Software Revolution

The MainStem development and strategy teams had allllll of this in mind when they started designing out the MainStem Procurement Platform. Since we were building the first ever procurement software just for cannabis, we knew the platform had to solve these issues instead of making them worse. Challenge accepted, we designed a system that doesn’t add complexity but instead simplifies procurement, centralizes all your data, and connects your employees, locations, and departments into a single, user-friendly dashboard. Prepare to be amazed!

How MainStem solves for industry maturation:

We know where the industry was 10 years ago, we know where it is today, and we can see where it is going. We are innovating daily to make our platform the best possible procurement system for cannabis operators. We are building with your future in mind, and instead of trying to force traditional procurement practices into the cannabis mold, we are building a whole new mold – just for you. We are taking the best aspects of procurement processes and customizing them for the industry we know (and love). And if things do get a little overwhelming, we have a whole team of actual humans to support you every step of the way.

How MainStem solves for growth: 

We are growing with you. We didn’t design our software 10 years ago; we are actively designing and innovating our solution for today’s cannabis companies. We know the industry is experiencing expansion and aggressive M&A so we built a system that can facilitate that growth instead of complicating it. We integrate all your systems, whether it is your cannatech, your accounting/ERP solution or other business software tools. By doing this, MainStem becomes the “connective tissue” that brings all your data, financials, workflows, and procurement processes into one platform, whether you have one location or one hundred. We also bring all the supplies you need for your operation into a single, eCommerce platform, allowing your team to easily source, compare and purchase everything from one place. Imagine what your team could do with the HOURS that will save them.

Oh - and one more thing. We charge you one, flat licensing fee, for unlimited locations and unlimited users. We want to be your partner throughout all your growth and success. And as a good partner, we certainly are not going to penalize you for growing your business.

How MainStem solves for compliance: 

If you are using procurement software designed to manage the workflows and processes for fitness concepts or clothing retailers, you have to know that they are not going to be concerned with your state-by-state compliance. When you choose a software platform designed by people that knows cannabis inside and out and built their software in partnership with the industry, you are assured they are hyper-focused on all these important, industry-specific workflows.

As experts in cannabis across all verticals, we know how critical compliance is – even before you plant your first seed or ring up your first sale. We can ensure that your cultivation facilities team can only order nutrients that are compliant in their specific state, and on the other end, we can help you design branded packaging that is fully compliant for all the states within your operation.  

Our multiple entity & location support combined with custom catalogs, product controls, and approval systems give you control at the state-specific level for all applicable regulations. This means the MainStem Procurement Platform keeps you compliant in any state, eliminates risk and saves you from expensive fines. You can thank us later!

How MainStem solves for visibility:  

How can you forecast and budget for next year if you have no idea what you spent collectively this year?

Are you using 37 spreadsheets to manage supply purchases?

Did Bob in operations accidentally overwrite an order in google sheets and now you have no idea who ordered what and if it was even received?

Do you have invoices coming in and you have to search through your emails to figure out who purchased it, and what cost center it needs to be coded to?

Yikes, we see this all the time. MainStem digitizes and connects your whole org, giving you a national, regional, and location-based view of 100% of your spend & activity across all your locations, licenses, departments & users.  And when we say connect – we mean you manage it and see it all from one dashboard in our platform. MainStem gives you the insights you need to forecast, plan, and maximize cost savings opportunities - in one place.

So... Is a Cannabis-Specific Procurement Software Important?

Ok - now that you understand the complexities, and you are looking at all the software solutions out there that claim to solve your procurement woes, ask yourself (and the salesperson pestering you every 5 minutes), does this procurement software REALLY understand my business, my operational complexity, and my industry? Do they GET cannabis?

Let's go back to our original question – How important is it that your procurement software was built for cannabis?

We talk to operators every single day and know how to help them thrive. Once you consider all the unique complexities of doing business in this wild and crazy industry, we know you will see how important it is to work with a vendor that knows the cannabis industry inside and out and has customized software especially for your needs.

We can’t wait to show you how MainStem can help your cannabis operation thrive!

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We have an ERP – Why do we need MainStem?

It’s a question we hear a lot. More and more cannabis companies are maturing the way they manage their businesses and are looking for tools to help them do it efficiently. In many cases, that means implementing an ERP (Enterprise Resource Planning) solution to help them manage their day-to-day activities by connecting procurement, finance, manufacturing, and supply chain workflows.  

We know ERPs are great, but they can also be expensive to implement and cumbersome to adopt. This is where we fit in. MainStem doesn’t replace your ERP. Quite the opposite – our Procurement Platform was built to enhance and augment your ERP’s capabilities and make your life way easier.  

In order to better show you how MainStem complements your ERP, we need to first understand the pitfalls and complexities of a traditional ERP solution.

What does an ERP ACTUALLY do?

ERPs seem to be the tech buzzword of the day in the cannabis industry. It is understandable. As SSOs and MSOs grow in both size and complexity, they need robust tech solutions to help them manage their business. From SAP to Dynamics 365, we are seeing an increasing number of operators embrace the sophistication of ERP solutions. But how does it really work? Essentially an ERP collects the business-critical data across an organization and centralizes it, along with all the activities and information related to purchasing, sales, inventory, invoices, and material outputs, in a single place. This enables leadership to get a full picture of what is going on across their business, allowing them to use this data to analyze and measure the health of their business and gain operational efficiencies.

Sounds great – right? It is. But just like anything, there is always a catch. Whether you are in the cannabis industry or in a traditional production-based or distribution-based business, there Is no “silver bullet” solution when it comes to easily implementing an ERP solution as the foundation to your business practices.

Download our FREE ERP Fact Sheet

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So what is the catch with an ERP?

Cost. Plainly put ERPs are massively expensive. Between the license fee, implementation support and the subscription itself, you are easily looking at a 6-figure investment for your cannabis operation and the more people you have in your organization using the ERP, the more complicated and expensive it gets.  

1. Core software license + User licenses. An ERP is not a one-and-done cost to your business. After you pay the core software license, user licenses can range from $50-$500 PER USER /PER MONTH. This usually means organizations must restrict the number of licensed users, limiting the actual full-organization functionality and visibility you wanted. If you are looking to truly understand your business by consolidating all your processes and data into a single platform, excluding employees from using the tool uniformly means you lose out on many of the promised efficiencies and transparency. And that visibility is probably what lead you to buy the ERP in the first place.  

2. Customized Integration and Implementation. Every business is different, so therefore no ERP is totally aligned out of the box with your specific operational needs. To maximize your investment and reap the benefits of this strategic software purchase, you are likely going to need to bring in a 3rd party contractor to help you build out your ERP to the  unique specifications of your business.  This service will allow you to customize the workflows of the ERP to your needs, and ensure a full integration with your other systems, like your seed-to-sale, inventory management system, accounts payable solution, and POS. Depending on your business size and scope of the implementation, the cost to hire these types of implementation specialists can easily add tens of thousands to the overall costs of your ERP, bumping that total bill up even more.  

3. The unexpected costs of nickel and diming. ERPs are sophisticated, powerful, and complex systems. And as a result, they can be inflexible in their configuration. Even the smallest modification to the interface or the workflows generally requires more time from your internal team or another engagement with your 3rd party consultant, resulting in additional time and cost. During the first year of use, these kinds of costs can pop up unexpectedly as your team is still working through the kinks of customization and integration. It is hard to budget or plan for these occurrences, yet they can rob you of valuable time and lost efficiencies – and isn’t that why you got an ERP in the first place?

Deployment. Like anything in the cannabis industry, you probably needed the functionality of an ERP yesterday… but once you make the decision, you are looking at anywhere from 18-24 months to get it up and running.  On average, implementation takes 30% longer than the original scope, and more than half the companies experience significant operational disruption during the deployment.  These extended timelines and on-going delays in usage mean your team’s productivity is diverted by the ongoing customizations and training.  

Once the system is implemented, the single most important success factors for any ERP roll-out are workflows and adoption.  If the ERP’s workflows fail to facilitate your team’s efficiency or the interface is confusing, incremental costs and time might be required to resolve the issues. Ensuring your team is comfortable and proficient on the system takes time, since most ERPs offer complex and often less-than-friendly user experiences.  

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But you need an ERP… so how do you navigate all this expensive complexity. When your main focus is growing and selling cannabis, the time and effort to implement these systems can be overwhelming and frustrating.  MainStem doesn’t replace your ERP, but we work alongside it, alleviating many of these issues listed above, and actually help you recognize the full potential of the solution you have poured blood, sweat and tears into deploying.

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Download our FREE ERP Fact Sheet

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Why Cannabis ERPs need MainStem for successful deployment and adoption

MainStem SUPERCHARGES Your ERP. Built to complement your ERP instead of competing with it, MainStem becomes the “connective tissue” between your ERP and all your other systems, augmenting and enhancing your existing software investment while eliminating the annoying costs and time-suck we discussed above.  And the best part is- we give you all of this at a FRACTION of the cost of what you would pay to have your full organization using that ERP.  

Let us explain how.  

While ERPs can handle most of the processes and workflows of your business, they still don’t always play nice with your seed-to-sale, track-and-trace, and your cannabis-specific POS systems. With the complexity of state-by-state compliance issues, you likely have a multi-entity banking structure, and may be using a variety of different accounting solutions across your footprint. These are just a handful of the unique complexities of the cannabis industry that add to the ERP implementation challenges.  Remember, these sophisticated systems were built for traditional industries, and many have shied away from working in and developing for cannabis without the guarantee of federal legalization.  

This is where MainStem gets really cool.

Simplifying your tools: We know cannabis, and we were built for cannabis. We were also built to integrate with ERP, accounting, and seed-to-sale solutions. Remember when we said we were the “connective” tissue? This is what we meant. By integrating your ERP and other software into MainStem though our open API, we connect all your systems together, simplifying your tech stack (Tech stack refers to all the different software and tech tools you are using to run your business). We play nice with everyone, so we can help eliminate the disconnect between your cannabis software, business-critical tools, and your ERP. The great part is MainStem is easy to use and easy to deploy. Our configurations are flexible and require no code customizations. We support workflows across all your entities, locations, and departments - without compromising your ERP or requiring expensive customizations.

Saving you money. This might be the best part. We have a flat-fee subscription structure. That means you can add as many users and as many locations as you need – all for a single subscription fee. Crazy right? You might ask why we are priced this way. It’s simple - because MainStem exists to support cannabis operators, and we understand the volatile growth and expansion of the industry, so we would never penalize you for being successful and adding staff and facilities. What kind of cannabis partner would we be if we kept charging you more money every time your business grew? We are here to celebrate your successes, not punish you for them!  

But let’s break down what our flat-fee pricing structure actually means for YOU.  

Because we integrate with your ERP, you can access all the critical procurement, manufacturing and financial tasks through our interface and have it connected back into the ERP. So, you no longer have to pay to individually license all your employees on the ERP. Just give those coveted licenses to a select few and let the rest of your team reap the benefits of the ERP functionality through the MainStem interface (which, spoiler alert, is a lot more user-friendly those within the ERP).

Ease of Deployment. Get ready to be further amazed - we can get your team up and running on the MainStem core functionality in a matter of minutes, and if you do need to customize organizational workflows (because we know no two cannabis operations are alike) our team of CannaTech experts can get that implemented for you in as little as 30 days.  That probably sounds more appealing than that scary 18-24 month time frame you had to endure with your ERP.  

Because user adoption is critical to a software’s success, we want to make sure your staff is supported every step of the way. To make life easier, we have created an easy-to-use solution that our users LOVE which enables and enhances the functionality of your ERP. And along with that great user experience, we also have a whole team of cannabis experts here to integrate, onboard and support your team as they navigate this journey to efficiency and cost-savings. We like to think our team is more fun too, but that you will have to find out for yourselves.

So now you know – MainStem doesn’t replace or compete with your ERP – it enhances and augments its functionality, and helps you maximize the investment you made. And, as an added bonus, your employees will actually like working in the MainStem Procurement Platform. As that old saying goes… Happy Employees, Happy Life.

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To find out more about how MainStem can help your business thrive, book a discovery call today.

or Download our FREE ERP Fact Sheet

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Every year, June rolls around, and companies rush to change their logos into rainbow versions, leaving members of the LGBTQIA+ community to try to figure out the authenticity of the gesture. While many people see June as a celebration (which it obviously is), the true origin of Pride is based around the fight for equality. Sadly, that equality is never guaranteed, and this past year we have seen several examples of concerning legislature that seem to threaten basic rights for the LGBTQIA+ community – including attempts to restrict health care, marriage, mental health and even access to sports and competition.

MainStem is an evolving company, and as we have grown in both number and offering over the past year, we are working hard to build a culture of inclusivity, authenticity, and acceptance for everyone on our team. This year we defined our company values around the acronym “Grow Bold” with each letter signifying an attribute of our company ethos. As our internal  pride committee worked to establish our external campaign around Pride, we looked at our values for alignment and guidance, and found these ones particularly resonated for us at this time of year:

·       Blaze trails: If it weren’t for the brave people at the bar in Stonewall who stood up and rioted for rights, we might not have the pride parades we have now and so much more. They were the pioneers(and heroes) of the gay rights movement.

·       Own our destiny: LGBTQ folks have an acute understanding of society’s pressures to conform but refuse to tamp down the basic desire to live and find love in their own way, not according to some morals and doctrine some want to push onto them.  

·       Leadership: It takes leadership to make a group of people who are subjected to hatred and bigotry feel comfortable tocome out and live their truth. From Ellen saying “Yep I’m Gay” in Time Magazine or Harvey Milk who helped push legislation to ban discrimination based on sexual orientation, leaders of the gay movement have helped move the needle and push us forward.

·       (do the)Right thing– This speaks for itself. Advocating for equal rights is just the right thing to do. All day and every day.

The MainStem Pride Campaign Comes to Life

We did not want to just change the color of our logo without providing a safe space for our team to openly talk about Pride month and the LGBTQIA+ community. With all of that in mind, and specifically with the company values above as guiding principles, we invited everyone on our team to share what Pride means to them.

Over the past few weeks, our employees have been sharing their experiences and feelings about Pride and their experiences with and in the LGBTQIA+, with moments of vulnerability, celebration, and even fear over what the current political climate means for their rights, and the rights of their loved ones. We have been sharing excerpts of these conversations on our social media channels but wanted to give the space here to celebrate and support the members of our team who felt compelled to share.

We are proud to have a diverse and open team, and as we celebrate all the voices that make up the LGBTQIA+ community and their allies, we are happy to share some of the amazing thoughts and experiences of the MainStem leadership and employees.

From Alen Nguyen, MainStem's Founder & CEO

What does PRIDE month mean to me as an ally?

The LGBTQ community is a reminder to me of humanity, both how ugly it is sometimes but also how beautiful it can be. A few things come to mind when I think of PRIDE month:

The FIGHT. The courage, the struggle. Having to constantly face people who don't accept you, make laws against you, and to still stand tall and fight for equality. Incredibly admirable, a mountain of bravery.

The GRIT. To continue, the strength to persevere and not give up. To stand proud everyday of who you are even when it feels so hard because you're tired from people trying to tear you down, but you keep your head up high.

The Empathy. You are the most empathetic when it comes to other humans, your personal fight and journey has built an amazing character and understanding of what humanity really means and should be.  

These are all virtues, experiences, and qualities that I relate with and deeply appreciate. As a person built from a multiracial family, being unique has given me my scars and strength to be proud of who I am today and PRIDE month reminds me of that and perspective on your journey. As an ally, I will always have your back in the fight for equality.

From Erin Stearns, CRO:

The LGBTQ community has illuminated the way for people; past, current and future, to fight for the right to live authentically, in the purest form. How incredible is that? Most of the world, if being honest with themselves, likely do not pursue that same goal mainly due to fear and perceived impossibility. PRIDE, to me is a reminder to all of us  how important support of that goal is and how important it is to feel proud out loud. Regardless of sexual orientation, gender identification, race, religion, age or social eco status ...  acceptance starts from within and next comes the right to be able to live out loud. This shouldn't be a fight but sadly it is. It starts with honesty, then courage and continued with strength  - especially in the face of hate, discrimination, judgement and unacceptance. The LGBTQ community should be celebrated, not just this month but every day, for being role models to all of us; as living authentically applies to all in different shapes and forms. PRIDE should be a time where everyone stops to take notice of that, acknowledging that pursuit and rally together in celebration of a community who embodies all the qualities we need more of in this world - courage, honesty, perseverance, passion and compassion (to name a few). We, as humans can, should and need to do better. I look at the LGBTQ community as being beacons of hope and PRIDE as a celebration of the brave souls that seek to live their truth, as we should all be doing in earnest.

From Garrett Hampton, CTO:

Being an LGTBQIA+ ally means connecting, supporting, and caring for those around me who still face adversity. Throughout my life I have seen the struggles of partners worrying about their future and the right to marry.  In 2015, it made me incredibly proud that the White House was lit with rainbow colors to mark the high court's decision for equal marriage. This small, but powerful stance, catapulted our culture into acceptance and freedom to express their true selves.

I have always believed in the power of action. In 2004, my volunteer work for "Aid for AIDS of Nevada - AFAN" introduced me to some incredible people with remarkable stories.  I took those personal stories and turned them into a multi-media software program that was entered into Nevada’s high-school programming competition where we won for "Most Thought Provoking.” Fast forward almost 20 years and the idea of supporting a community member who shares a difference in opinion or lifestyle remains thought provoking. It is 2022 and we are still defending a basic human right to love who you wish.  It should go without saying and it is unfortunate that we must continue to have this argument.

Every person has their own journey to go through. In the last 7 years we have had folks - from different generations - feel safe enough to come out to their world knowing there is a community that openly accepts them. There is something to be said about the courage it takes to share this intimate experience with family and strangers.  It pains me to think that some of my own family members are at risk of more bigotry.  Because of this, I feel more inclined to act and fight for those who don’t have a voice in their own home.  I am inspired by the strength, courage, and determination the LGTBQIA+ community is faced with. I am proud to be an ally.

From Adrienne Bailey, Head of Finance & HR:

First let me tell you, I am so excited for Pride this year! After 2 years of no pride parties, no drag queens, and no celebrating with friends, I am ready! We are ready. Let’s get serious though, this is honestly the first time since Obergefell that I am truly nervous for my marriage. I don’t say that hyperbolically. I’m nervous that a Supreme Court decision that has only 7 years of legal precedence isn’t enough anymore. In Washington, yes, my marriage is safe. But, is there going to be a time when my marriage is treated like the old days of cell phone service, where there are areas that we just don’t have good coverage.

June is also a pretty dark month for me and my friends. Our worlds were turned upside down on June 12, 2016. We were woken up in the middle of the night to frantic phone calls from friends telling us that there was a mass shooting at Pulse. One of my best friends, Kate was there that night. Kate was one of the first employees hired at Pulse. She was there the night it opened and ultimately the last night it was ever open. Miraculously Kate was not hit. The bartender next to her was shot and one of the two customers she was talking to as the bullets started to fly, did not make it out of the club that night. His boyfriend made a split second decision and hid behind the bar with Kate. They both held each other under her ice well. Police rescued her that night because the shooter took hostages in the back of the club. Thankfully the others we know that were in the building that night, made it out too. Some people lost friends and family and we all lost a place. Pulse was where I first met my wife. Kristen and I got to know each other after hours on the back patio one night while Kate closed the bar down. It was also where we had our going away party before we moved to Seattle. I can’t tell you how many nights we spent running around that place while Kate (over)served us. Gay bars and clubs are a big part of our community because it’s that first place where you can feel free. Free to be who you are, and free to be with who you love. It’s a safe space and it all came crashing down that night.

All that being said, this pride month in particular feels really important. There’s plenty of room for fun, and we should celebrate but we also have to understand what’s at stake here because for some of us it’s everything.

From Janaya Fix, Head of Product Management:

Love is Love - What does Pride mean to me

Pride is not all glitter and confetti, yes we love to have fun, but the root of it is about the ability to unapologetically celebrate, to live safely and without judgment in our authentic truth.

As part of the LGBTQIA+ community, Pride gives me hope.  During this time, we should reflect and re-energize our commitment to stand true.  But, Pride is not just a month, it is a commitment between us that we acknowledge each other's experiences and that we appreciate everyone for their right to love. Not who they love or why, but just the right to love - period.‍

As a mother, Pride month is an opportunity to talk and showcase acceptance, openness and love. Children are brave and proud by their very nature and by bringing them up in love and inclusivity, we teach them not to be afraid of their true selves, whatever that looks like for them.

As an ally, I support the LGBTQ+ community in many ways, whether it is as a mentor to an LGBTQ+ child or supporting LGBTQ+ artists and businesses, I stand with the community, side by side with an open heart and an open mind.  We are living in tough times, where the government believes they can control a woman's choice to procreate.  It is like we got on a slide and went back 50 years.  But there are more liberties at stake here.  So many more.  Being an ally is not about being there one month a year, but standing beside the community 24/7/365!

From Matt Neiland, Senior Software Engineer:

As an LGBTQIA+ ally, I’ve been proud to see social justice issues become status quo or the norm in our culture.  But the recent signals from the Supreme Court on women’s reproductive rights has me worried for our LGBTQIA+ citizens.  Something we thought was “settled” law suddenly seems in question.

These concerns have taken on deeper meaning for me in recent years.  In 2019 I got married and as usually happens, your friend group or “chosen family” gets a little bigger.  Our Ohana is lovingly referred to as the “band of misfits” because whether we are neuro-divergent, Ace, Pan, Gay, or just too smart for our own good, we don’t fit in everywhere.  My wife’s Ohana has become my Ohana, and suddenly I feel threatened too by these signals.

This is especially important to me because two of our dear Ohana friends recently got married in Vegas this past month. As we prepared for the ceremony I couldn’t help but feel how normal it all felt.  What’s more American than a Vegas elopement?!

But I know the fight is not over.  It continues and though it feels like we’ve won and can’t go back, it’s going to take a consistent voice and resistance to these ideas in order to win for good.

I love that my company has reached out to ask us our thoughts on Pride and it makes me prouder than ever to be part of MainStem.

From Andrea Sampson, VP of Marketing:

What Pride Means to Me - As a Mother and an Ally

It is hard to put into words how important this month is to me. As a single parent living in a different country from my entire family, I rely heavily on my chosen family, and over the years that family has grown to include numerous humans that represent almost all the letters of the LGBTQIA+ community. My girls and I are so incredibly blessed to be surrounded by these people, who love us, support us and lift us up when we falter. This community of ours is comprised of true and pure love, and when I think of the discrimination, ignorance and hate that exists in this country towards these amazing people, I am shattered.

So Pride is a complicated month, because I want to honor and celebrate this family of mine, but more and more I feel like we are back to needing a riot and a revolution more than a parade. Its personal on a level that I viscerally feel every time I read the news and see legislature that seeks to harm and ostracize the people I love, because beyond this chosen family, I have my biological family that includes an LGBTQ daughter. When I look at her and her generation, I try to hold on to my hope for the future, because their acceptance of other is far more beautiful than what I see from their elders. I can only place my faith in their ability to rise above the bigotry that defines the older generations, and hope they have the wisdom and the strength to define a culture of love and acceptance that cannot be stricken away with the tide of shifting political agendas. Equality for all should be an unwavering and indisputable right in this country, not something given and taken away at the whim of the presiding majority.

So for me, Pride is beautiful and brutal, a reminder to celebrate and a call for action. It is a revelry and a riot, and I am here for it all - for my daughter, for my community and my coworkers, and for  all the people in this country fighting to be respected and seen as the beautiful HUMANS they are.

From Kevin Jones, Head of Customer Advocacy:

I remember the first time I knew I was “different.” It was a normal day for a 13-year-old. Breakfast at the table, parents talking about the news, my older sister picking a fight with me for no reason. I remember in between the typical sibling screaming match, I overheard my parents; catching words like “lure,” “fence,” “torture,” and “dead.” Then, the word I had learned to fear the most: “GAY.” I remember hearing the word, immediately pained. That word made me feel dirty, ashamed, and, even sadly, mad. Why? Because it was a word that kids had associated with me in the past, never as a jest or a joke, but always as “you’re different and don’t belong.” I was confused though, by the words they had uttered before “that” word. What did they have in common? I don’t know exactly what my reaction was, or who explained it first – but that was the day I learned about Matthew Shephard.

For the next five years – school dances, first kisses, graduation and college acceptance – I told myself I was not different. I was not… gay. I would not end up like him. Sadly, my fear outweighed my compassion. It didn’t matter that my dad, a hippie famously known for wearing tie dye daily, spent my high school years telling me that gay people were people… that civil rights were inherently human rights. Or that my mom had fallen in love with Will and Grace – secretly praying for a gay best friend to drink cosmos with and take with her on exotic vacations.

I finally went to college – a very catholic college. Maybe part of me thought going straight up catholic would help me be straight up, straight. But that’s where I learned the Jesuits love to sin… and I also met someone who helped me realize that I couldn’t be that 13-year-old boy. I couldn’t fear living my authentic self. This was the scariest decision I ever made. Will and Grace was what I had growing up. There wasn’t much real representation. It was scary, lonely, depressing, but had to happen. I couldn’t not be myself any longer – because the only other alternative was suicide. I can admit, I was one of 60%+ gay youths who thought that suicide may be a better alternative then to be honest with the people around me. What if they didn’t like me anymore? What if I lost everyone I knew? I came out in a drunk dial, refusing to talk to my parents and family after. Two months later, I had to return home because Fordham was closing for Easter break. I avoided my parents and went directly to the laundry room, where I noticed a box labeled “Gay Chair Covers.” Frustrated, I ran upstairs to question my parents screaming “What the actual F is this”. My dad, without missing a beat, calmly turned and said, “we wanted you to know that we are proud to have many gay things in this house.”

That’s what pride is to me. That I don’t have to be that scared, ashamed, 13-year-old boy living in a world of fear and darkness. It’s not about being gay or straight. It’s about when you finally get to leave that darkness, be your authentic self, you finally get the opportunity to see every color of the rainbow. Do I still struggle with various stages of internalized homophobia? Absolutely. In the past two weeks alone, pundits have called “me” a groomer, abnormal, and disgusting. The largest single state political party has denounced gay marriage and the gay “lifestyle.” Crimes against the community have increased 40% over the past two years. And sitting congressmen are actively calling for members of the LGBTQIA+ community to be put to “death by firing squad.” In all honestly, this year, I bought rainbow socks for our pride fest in Denver. I’m terrified that if I walk down the wrong street in them, I will end up on a fence.  But that’s why we have pride. To know that this is all noise. That there are other people, an entire community, who have felt a similar fear in that same darkness. That there are allies ready to ensure no one has to feel alone. Some may call corporations “pride month” logo changing pandering. But to me, a proud gay man, it shows me that I belong. I can take pride in my company, my community and my companions.

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MainStem is proud to support all our employees in living their authentic selves. We are honored that members of our team felt supported enough to be vulnerable and open in their contributions, so thank you to everyone that participated. As we approach the last few days of Pride Month 2022, we invite you all to remember that Pride is not just a single month of the year, nor is it just about displaying a rainbow, be it a logo, a flag, a shirt or what have you. Pride is a commitment to inclusion and equality. It is about respect, love, and the continued fight for justice and acceptance for all people in the country.

We invite you to think about how you can show up for your community not only in June but throughout the year, and share examples of support with us. For our part, we will be sharing the MainStem commitment to social equity throughout the rest of 2022 and beyond as we work to be a partner for equality and representation not only within the cannabis industry but in many ways throughout the communities that are meaningful to our team.

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We wish everyone a very happy, safe and joyful Pride month, and please know we are celebrating along side you! Grow Bold(ly) Everyone!

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Seed to Sale Tracking:

Cannabis is tracked from the beginning of its life as an immature vegetative plant to its sale as a finished product. Clones are not typically not tracked. A plant is tagged and enters the traceability system when it becomes 8’ tall or 8” in diameter. The specifics on clone tracking vary by state.

When a clone becomes a vegetative plant, it is issued a unique identifier number. The unique identifier must be attached to the plant (plant tag) until harvest. The cultivator is permitted to use a barcode representing the unique identifier number for ease of scanning but is ultimately responsible for the number vs a barcode.

The traceability system must be updated as the plant moves around the facility during its life cycle. Typically, this means reporting when the plant:

• Moves Veg to Flower
• Is harvested and combined with other plants of the same strain (a harvest batch/lot)
• When the harvest batch/lot is sent to a lab for QA testing
• When the harvest batch/lot arrives at the lab
• When the harvest batch/lot is sent back to the producer or processor

It should be noted that the quality assurance (QA) lab is responsible for inputting test results into the traceability system. The producer/processor is not allowed to do this.

When a lab approved harvest/batch lot is ready for packaging the unique identifier number of the harvest/batch lot must be on every retail package created from the lot.

Traceability Software- Commercial vs Government:

Licensees are responsible for submitting reports directly to the state traceability system. They can buy commercial software to automate that but if their commercial software fails, they must manually enter reportable events.

The state government agency that is responsible for policing that state’s commercial Cannabis industry typically contracts with a software company to set up and maintain the state traceability system. Licensees are provided a free web portal for manual record submission. Some states license applicants to pass a test on entering data into the state system before approving their application.

The free web portal is typically clunky and frustrating. If the licensees are permitted to print their own plant tags, the free web portal will issue the unique identifier number for each new plant tag but not the barcode version. The free web portal also lacks a label design feature. The time and energy spent converting numbers to a barcode for easier scanning and custom creating retail package labels may justify paying for commercial software.

Commercial Traceability Software

There are many choices for commercial traceability software. Reputable ones are integrated with the state traceability system. This allows the commercial software to automate all the required record entry as well as provide features to make the licensees’ job much easier. The licensee has a much smoother and more automated experience with all their required records submitted automatically. Plant tags and retail package traceability labels are easily created. Custom business reports help tremendously. Commercial traceability software is focused on the licensee.

Government Traceability Software

METRC, LEAF, and BioTrack THC are industry leaders in government traceability software. However, LEAF and BioTrack THC also offer commercial traceability software packages. LEAF’s commercial product is MJ Freeway. BioTrack THC lets the government customer decide the name of the state software package.

METRC is government facing only. Most states use METRC for their Cannabis traceability system. They do not offer a commercial Cannabis traceability software product. METRC requires licensees to purchase plant tags directly from METRC. This security measure prevents licensees from printing their own plant tags. METRC plant tags come with a unique identifier number, barcode version of that number and an RFID chip. METRC plant tags cost about $.40 each and are not reusable. Notably, California includes the cost of the plant tags in its license fees. This may explain the expensive fee structure in California. METRC’s RFID technology is expensive for the licensee and is not typically used. Most licensees use the barcode feature.

Labeling:

Most states require static and dynamic information on the final retail package.

• Static — does not change from batch to batch
• Dynamic — does changes from batch to batch

Static information includes the name/business identifier of the producer/processor, the state required warnings and any state required symbols. Dynamic information includes lab results, pesticide info, solvent info, and the business identifiers of any other licensees that contributed product used in the final retail package.

Printers — Labels and Plant Tags:

There are two types of printers typically used by our customers; Direct thermal and Thermal Transfer.

Direct Thermal

Direct Thermal labels are used for dry retail package labels. The printhead burns the information into the label stock, similar to how a cash register receipt printer works. These labels don’t stand up to moisture very well and the image blurs out, making barcodes unscannable. MainStem’s standard Direct Thermal printer is the Zebra ZD410.

Thermal Transfer

These printers use a wax ribbon. The printhead melts the wax on to the label stock. Thermal Transfer labels stand up well in moist environments and are well suited for plant tags. MainStem’s standard Thermal Transfer printer is the Zebra TLP 2824 Plus.

Important notes!

Thermal Transfer and Direct Thermal each need their own label stock. Direct Thermal stock has a special dye that reacts to heat and Thermal Transfer stock is designed to accept melted wax. If a customer has both kinds of printers it’s important to keep the boxes of blank label rolls separated and/or plainly marked.

Zebra ZD Direct Thermal printers ship with a USB cable.

Zebra TLP printers do not.

Scanners:

Our customers use two types of scanners; 1D and 2D.

1D scanners scan simple bar codes like a grocery store check stand scanner.

2D scanners scan more complex 2D “barcodes” like QR codes and the backs of driver licenses.

• Cultivators — use 1D barcodes for plant tags.
• Processors — use 1D barcodes for retail package traceability labels
• Retailers — use 2D scanners to scan driver licenses at the point of sale.

MainStem customers have a choice between cordless (convenient/higher price) and corded (lower price) models.

Scales:

In the industry, there are generally use two types of scales; durable industrial benchtop scales and fine jewelry balances.

• Durable industrial benchtop scales for weighing pounds (Harvest/Lot Scales)
• Fine jewelry balances for weighing grams (Retail Packaging scales).

Harvest and lot scales have an about 5g/.01lb resolution. Retail packaging scales have either 100 milligrams 10-milligram resolution.

The 100mg resolution (0.1g) is only compliant in Alaska, Nevada, Washington, Oklahoma, and Maryland as March 27, 2019. All other states require 10mg/.01g resolution. All of the packaging scales sold on the MainStem Marketplace are high quality so they display an accessory digit, encased in brackets, next to the primary digit. The accessory digit is +/- 5, not NTEP approved and is not considered when choosing scale resolution.

Almost all states require that scales used for commercial purposes must be NTEP (National Type Evaluation Program) approved. NTEP approval is a manufacturing standard. NTEP scales are better built and more durable than non-NTEP scales so they stay spot on (repeatable) for years.

POS:

Each of our software partners has a particular line of hardware they like to work with. While some hardware items like Zebra Printers and POS-X Scanners work with pretty much any software, POS systems are software specific. We rely on approved hardware lists from our software partners to make sure our customers get the right products. The short story is that we sell hardware tailored for each software company. If you require a particular item not listed here, reach out and we can help you locate it.

State Specific Labels:

When it comes to labels, each state may or may not have a requires universal symbol or other package markings. We currently offer universal symbol stickers for Oregon and Washington. In addition, we also offer POS labels for Oregon customers. We are working on additional states.

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Technology and the Cannabis Industry

Even though cannabis attitudes, consumption techniques, and legislation have significantly evolved over the past decade, one thing still hasn’t changed: fragmentation and the lack of technology standardization. As more states take steps towards legalization, operators are now more than ever expected to grow premium-flower, manufacture high-quality products, and build out Apple-style dispensaries. All while carefully crafting a unique, tailored experience for consumers, who for many, will be shopping for the very first time. For operators, this means being a jack of all trades and master of none as they try to piecemeal together multiple technology solutions, oftentimes dictated by nothing more than simple geography.

The Problem

With cannabis being both highly regulated and federally illegal, operators across the country are mandated to use a state-sponsored track and trace system. These systems are chosen arbitrarily and differ from state to state. METRC, for instance, is the most common system awarded, with 17 states, followed by BioTrack and MJ Freeway. Because of this, no operator is immune to the technology fragmentation that exists across their entire organization. Take Curaleaf, the largest MSO in cannabis, as an example. In a majority of the states Curaleaf operates in, they are required by the state to use METRC across their cultivations, manufacturing, and retail operations. On the cultivation side, METRC does a fine job of tracking planted seeds to their harvest. Yet, METRC as a technology system does not allow the operator to make sales forcing distributors and retail operations into purchasing a second system integrated by either API’s or the good old, manual entry. So, while it is mandated across the full vertical, distributors and retail operators in METRC states need to learn multiple technologies just to make a sale, oftentimes triaging broken integrations and failed API calls. This is just half of the technology solutions that Curaleaf will have to learn, just to operate in cannabis. This story is all too common for operators across the country who struggle to standardize any real SOP’s surrounding their technology.

The Solution

For businesses to successfully continue to scale, operators need to seek out additional solutions that don’t compete for their time but ones that are flexible and nimble enough to complement the systems they’re forced to use on the back end. Fragmentation isn’t new in cannabis, however, the CannaTech that powers today’s modern operations has just recently caught up. This is why operators, when seeking out additional tech stacks, should be looking for a few key things:

Seek Out Open Integration, Platform Style Solutions That Complement the Backend

To deliver on the cannabis experience consumers expect, operators must implement sound processes and plan carefully to optimize and streamline business operations for continued growth. This means seeking out technology that doesn’t require much heavy lifting on the backend and saves you time rather than taking away from it. Like the Curaleaf example, operators have to use multiple backend software. Additional solutions should be easily able to integrate into whatever software exists in an individual location while maintaining overall organization visibility. Always ask on a demo what a company is doing to connect all of your technologies. They shouldn’t just tell you, they should show you.

Seek Out Cannabis Specific Technology

There is a level of complexity in cannabis that only someone that operates in the ecosystem understands. For instance, there is the compliance aspect. This should be table stakes, but usually, operators are fined or shut down for something as simple as labels. That’s why you not only need a system that is nimble and flexible enough to complement your existing systems, but robust enough to handle the changing regulations. If the software company isn’t able to build the guard rails for you, it definitely won’t be able to keep you open. This is why sometimes the grass isn’t always greener. While larger, more traditional companies may look shiny, they’ll never cater to the specific cannabis needs. They’ll expect you to cater to them. Ask software companies that you demo in cannabis what they’re doing to protect your business. They should have an answer.

Seek Out Innovative Solutions Solving A Problem You Didn’t Even Know Existed

In cannabis, operators are typically putting out fires that any problem less isn’t even a problem. This is why operators should be open to demoing new, innovative CannaTech because they may not even know there is a solution out there that can help their day-to-day. Thankfully, the industry has progressed and solutions have been designed to help streamline overall businesses that have nothing to do with POS or Seed-to-Sale. Make sure to ask technology companies where your time will be saved. The company should be able to give you specific examples, specific to your role.

Seek Out Solutions That Don’t Claim To Solve Everything

Cannabis is too complicated for any one company to claim they solve for all aspects of the supply chain, especially when factoring in constantly changing regulations and business models. Those that claim to do will fall into three categories: They’re lying. They’ll fail because someone will come along and do it better. Or you’ll fail because they’ll lack the infrastructure to support you. As the industry progresses, solutions have progressed that target a niche problem and offer a simple, sophisticated solution. Operators need to leverage the entire CannaTech ecosystem and partner with these niche market leaders to successfully scale and get to a point of overall business process efficiency. When talking to software companies, make sure to ask what specific problem the company targets and how they fit into the cannabis ecosystem.

Seek Out Solutions That Are Driven By Data

Everyone in this industry wants to get to a point where they can make the right business decisions based on accurate data. This means both investing in technology that provides data in real-time and also investing in technology that you can grow with. In this industry, operators constantly move systems as they begin to scale, which at the end of the day hurts the data. Data moving from system to system, ecosystem to ecosystem, typically means one thing: it’s inaccurate. Make sure that you invest in a company that can easily produce a specific roadmap for six months, one year, two years with your business. Ask that software company how they plan to grow with you — they should have an answer because they should also be driven by data.

There’s a lot to be excited about as we enter the Golden Age of cannabis, but remember to invest in technology solutions that will help propel your growth through it. There are a bunch out there. Sometimes, they’ll even come to you. Always accept the demo; if they check the above boxes, they may be the right cannabis solution for you. Don’t expect them to solve everything, but make sure they’re solving something.

Supply Chain Management In the Cannabis Industry

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Across the cannabis supply chain, procurement managers are required to both seek out supplies and then purchase them. Due to fragmentation across the organization, and lack of federal regulation, most operators assume these actions must be mutually exclusive. However, by investing in an integrated procurement platform, like MainStem, organizations can reduce time spent searching for materials, increase the bottom-line on overall COGS spend, and streamline their entire ordering process.

But exactly what is an integrated Procurement Platform?

When it comes to searching for products, operators are typically required to “source.” The act of sourcing is where procurement teams spend most of their time. This action is prompted by a product need and then seeking out vendors to fill that need. Usually, a person will compare up to four vendors before deciding upon one that meets their criteria — lower price, faster shipping, or even sustainability all factor into the sourcing process. After a supplier is selected, negotiations have been agreed upon, and emails have been passed back and forth, a purchase takes place. This initiates a purchase order, that can be forwarded to the accounting or finance department. Seems simple, however, this model leads to confusion, inefficiencies, unexpected expenses, and unnecessary time spent.

Based on client feedback, MainStem estimates that this typical sourcing process can take anywhere from two to four hours weekly, and if it is a special project like customized packaging, the process can take weeks. Operators in cannabis are also overwhelmingly forced to deal with unreliable, non-compliant, or cost-ineffective suppliers due to the lack of standardization and a disjointed supply chain leading to longer sourcing times. Also, because the industry consists of fragmented companies and distributed workforces across multiple geographies, this model tends to lead to accounting teams being responsible for policing departmental spending and having to manually reconcile invoices. With limited visibility across the whole organization, this process leads to duplicate or mistake purchases, erroneous and unnecessary purchasing, and the inability to forecast for the future. While simple, this process is ultimately, ineffective. This is where an integrated procurement solution comes in, benefiting both the operations and finance teams.

An integrated purchasing platform leverages smart technology to help organizations adopt a leaner company spend model, cut time spent seeking out materials, and reduce the mistakes caused by human error. MainStem’s Digital Supplier Network, for example, allows operators to source strategically, comparing hundreds of vendors, centralizing the ordering process, and increasing the cost savings. Users can take it one step further by not only strategically sourcing materials but also incorporating intelligent purchasing. This model allows users to set permissions, control product purchases, build compliant catalogs, and maintain all the organization’s purchases into one centralized repository.

Why do cannabis operators need a centralized procurement solution?

Further maturity in the cannabis space, and the inevitable federal legalization, mean cannabis companies will now have to scale or prepare for acquisition. Both require visibility into company overhead, with COGS-related purchasing, besides labor, being the epicenter. With an integrated procurement platform, companies can evaluate total spending, identify areas of cost savings, and place controls on future purchasing. The ability for supply order automation and a centralized vendor network also reduces human error and time wasted. By strategically implementing an integrated purchasing platform, you improve the company’s bottom line. In fact, on average MainStem saves an operator up to 20% on an individual items and up to 10% on overall company spend.

Another reason for an integrated purchasing solution is business continuity. Cannabis is risky and operators typically deal with a disruption to the supply chain. Whether it is COVID or the ‘Vape Mailing Ban' that was implemented in October 2021, operators are forced to pivot to continue doing business. By centralizing all purchases and vendors in one place, with a transparent and holistic view of a company’s purchasing, operators can make better business decisions. The ability to immediately cost compare and introduce new vendors will let your company continue.

Another area of risk is compliance. Recently, a cultivator in Washington was fined $15K after buying third-party “food-safe gloves.” Staying compliant with state regulations is critical to every cannabis organization. MainStem vets and rates our suppliers, and gives users control over what departments can purchase.  Our multiple entity & location support combined with custom catalogs and product controls can accommodate state-specific regulations to mitigate risk and enforce compliance throughout your organization. Automating rules and restricting the ordering process reduces the risk of business disruptions.

Why do operators need a cannabis-specific Procurement Platform?

Since 2015, MainStem has been helping operators leverage strategic sourcing with smart purchasing, recognizing and customizing ourselves to the nuances of the cannabis industry, all while creating an integrated procurement platform that reduces costs, increases purchasing effectiveness, and minimizes overall business risks. By using MainStem, departments can control their own spending, eliminate ad-hoc purchases, streamline invoices to finance teams and establish a simplified standard purchasing process. We make your life easier by consolidating all your procurement and accounting workflows into a single platform. We were built specifically for the cannabis industry, and we understand the complexities of regulations, licensing, M&A and growth, and with that understanding, we structured our software and our subscriptions to accommodate unlimited users, unlimited locations, and expansion across state lines, so you will never be penalized for your growth.

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Over the past week, Americans have watched in disbelief as people filled plastic bags, laundry baskets and tupperware containers full of gasoline as fear over gas supply created massive hysteria across the country. The hacking of the Colonial Pipeline proved failures in both supply chain and cybersecurity, while also highlighting a common theme since COVID vaccine rollouts: Almost all commodity prices are higher than they were before the pandemic. According to Worldbank, global economic recovery has caused massive gains across all major supply chains, however, outdated infrastructure and distribution channels are suffering while prices continue to increase. Among these commodities, often overlooked by major business outlets, is cannabis and the ancillary supplies that go into growing, manufacturing and selling.

As of May 7, 43.2% of adults in the United States have access to adult use cannabis. * , almost doubling from the 22.5% in 2020. While big name brands are dominating certain markets in the United States and legalization continues gaining bi-partisan support, operators access to supplies at competitive pricing, in a timely manner, is beginning to suffer. Sure, supply chain disruptions in cannabis aren’t new. In fact, cannabis operators are constantly forced to pivot in the face of adversity to maintain business continuity. In 2019, the vape crisis halted vape sales across the US, and then in 2020, COVID shattered an already disjointed supply chain. However, today, between COVID relief and new legislation, the need for supplies is at an all-time high. So, what can operators expect? Higher shipping costs and increased overall COGS spending.

This is contributed to multiple factors. One, loosening restrictions on consumer access to cannabis among many states has created increased pressure for retailers to increase product production. Add stimulus check rollout and increased cannabis purchasing, businesses are now facing supply shortages. When going directly to the distributor, operators are now left with inaccurate wait times, wrong orders, or just overall confusion. This is due to distributors relying on decreased workforces, and lack of supply channels such as boats and trucks, as unemployment benefits are still at an all time high. Just in the past month, MainStem has seen wait times increase by three business days and shipping costs increase over 10%. And this is just the beginning of some real headaches for small business owners and cannabis operators.

Gordon Downes, CEO of the New York Shipping Exchange, an online cargo platform, said that larger businesses can often secure better shipping rates thanks to the size of their orders. Smaller ones, however, are at the mercy of spot rates and price increases. “Especially if you’re not in a really big shipper that has a very sophisticated negotiating process and a lot of leverage, you’re forced to accept these contracts,” Downes said. For example, you can imagine cannabis operators are now forced to pay increases in supplies with little to no data from previous years. Lack of industry leverage and sophisticated processes will hurt small businesses like cannabis operators if they do not begin to plan. Even Nike Inc. said revenue declined 10% in its latest quarter due to supply chain challenges. So, what can cannabis operators and other small business owners do?

Well, quite a bit. Unfortunately, cannabis operators are used to putting out fires, opting to spend less up front because of lack of capital and relying on vendor relationships for individual products. This model allows little room for competition and puts more pressure on the buyer compared to the supplier. It also makes buyers dependent on single supply chain infrastructure, causing unnecessary spikes in prices and expanded wait times during a crisis. As cannabis begins to grow into a larger industry, cannabis operators need to first invest in smart technology that follows standard security protocols and compliance. This will undoubtedly save them from cyber-attacks and technology mishaps. Also, they need to seek out smart purchasing platforms, like MainStem, that provide a holistic view of total spend and past purchases. Data will ultimately help cannabis companies cut excise spending, pivot in times of adversity and scale with an overall leaner spending model. By adopting a platform like MainStem, cannabis operators can also feel confident that they are receiving the most accurate and competitive price. MainStem, for example, uses aggregated data among all of its buyers to achieve competitive rates and place purchasing power into the hands of operators. Intelligent purchasing ultimately allows companies more control over supply-chain risks, by strategically allowing them to become more sustainable.

*According to BDS Analytics

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The Importance of Procurement Strategy

Cannabis companies typically don’t have a strategic procurement process which leads to confusion, inefficiencies, unexpected expenses, and unnecessary time spent. MainStem’s integrated Procurement Platform, gives operators a holistic and transparent view into an entire organization’s spend, ensuring better purchasing decisions and better standard operating purchasing procedures.

Here are five ways MainStem helps make your procurement team more efficient.

Cost Reduction

By leveraging our strategic sourcing e-commerce site, and smart purchasing technology, MainStem’s Procurement Platform keeps all purchases in one centralized location. When using MainStem, companies can evaluate total spend, identify areas for cost savings, and place controls on future spending. On average, MainStem saves companies up to 20% on individual purchases and 10% on overall company spend.

Time Savings

Don’t waste time seeking out new vendors. MainStem's supply chain ecosystem brings a Digital Supplier Network directly to you. On average, companies that leverage a in-network supplier save 96% of time spent searching for materials. MainStem compares pricing, shipping logistics, and overall product value across hundreds of suppliers in real time. With the RFQ feature, companies can even create custom requests that fit a certain time frame and criteria.

Risk Mitigation and Compliance Control

MainStem helps your organization control and monitor every purchase in one platform. With the ability to set user permissions and custom catalogs, MainStem Procurement Platform automates rules and restrictions in the ordering process reducing excess costs and risks that come with human oversight. With a centralized procurement solution, finance teams no longer have to spend time and resources policing departmental spend, and can rest assured their teams are purchasing compliantly.

Business Continuity

MainStem gives your business the independence it needs from supply chain disruptions. Cannabis is risky and operators are constantly forced to deal with a disjointed supply chain, whether it is a natural disaster or new legislation. When a disruption to the supply chain happens, having an integrated procurement platform, with a holistic view of total spend and a network of vendors, companies can easily navigate, pivot and take control supply-chain risks.

Forecast and Purchase Predictability

Mainstem helps analyze past spend to predict future purchasing. Our monthly supply audit gives companies business intelligence to make smarter purchasing decisions in the future. By utilizing data and procurement technology, companies can create a lean spending model and supply order automation.

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Book a demo to find out more about how MainStem can help you streamline your supply chain management.