710 is perhaps one of the worst kept secrets in the cannabis industry. 710, sometimes known as ‘dab day’, is a natural celebration of cannabis oil and thereby extracts.  

Why is Dab Day celebrated on July 10^th?  

When the characters ‘710’ are flipped upside down, they look like the characters ‘OIL’.  

New Frontier Data reported that vape products “were included in transactions at nearly the same rate among both men & women (21%).” Regardless of age, we’re seeing one in five cannabis shoppers reaching for oil.  

Unique Challenges of the 710 Cannabis Supply Chain 

The processing of cannabis extracts can be done a few different ways, but all routes lead to a complex supply chain. Extracting oil from flower can be tedious and often requires a lot of hardware to produce finished goods. This long path to finished goods leaves the supply chain with several points of vulnerability where things can go wrong or get expensive.  

Modern Solutions for Cannabis Challenges  

Operators who work with vape and concentrates understand the high overhead and hyper-specific regulations required to work in the extract world.  

Three of the Top Reported Cannabis Operator Issues During Production:  

• Remaining compliant per METRC or BioTrack throughout production  

• Not knowing exact COGS  

• Reporting is too slow for accurate inventory or batch tracking  

How Do Cannabis Cultivators and Manufacturers Stay Compliant Through Production? 

The strongest operators have both a compliance expert on staff full time as well as a compliance-based software. 

As more cannabis licenses are issued, the need for cannabis compliance managers rises. The average salary for a cannabis compliance manager averages out to over $90K a year. These roles are typically a one-person department with some exceptions for large, enterprise-level operations that justify a full compliance team.  

There is an opportunity for human error with compliance team members, so the best way to ensure compliance is utilizing tools that guarantee compliance guardrails. Many compliance experts advocate for software that has embedded connections with localized compliance regulators like METRC, BioTrack, and Health Canada. The best cannabis ERP for concentrate producers will all have strong relations with regulators.  

How Can Cannabis Cultivators and Manufacturers Track COGS During Production? 

There are a few ways operators track their COGS that range from very vulnerable to airtight. The most vulnerable way is to manually track spend and labor across finished product. While it appears simple on the surface, it ends up with lots of opportunity for missing numbers, simple typos causing calculation errors, and the chance that it could all be wrong or overlook key spend.  

The airtight solutions ensure accurate tracking based on accounting software for pricing, compliance measures that track what is used where and when, and labor. These tracking practices also deliver an accurate bill of materials for extraction inputs. Utilizing tools that empower operators to know their true cost per gram delivers the control over costs that business owners dream about. Airtight software solutions offer two absolute non-negotiables: accounting integration and compliance data. With accounting integration, spend is inherently tracked and verified for complete accuracy. Compliance data ensure each step of production is tracked and verified against products used, finished goods, and hardware depreciation. The best airtight solutions will be wholly integrated across operational platforms to ensure internal data transparency and compliance accuracy for all aspects of the business.  

Why is Reporting so Slow for Inventory or Batch Tracking?  

The solution here is a better solution. There are some cannabis tech stack companies that are built for cannabis without the resources to ensure a long-lasting product. There are also companies with tried-and-true tech that are not made with cannabis in mind. There are a select few tech companies that truly established technological resources and reliability with the custom infrastructure for the cannabis industry. More advanced tech-based companies will have live reporting, like Jet Reports. 

How Can Cannabis Operators Refine Their Supply Chain?  

By working with an ERP solution that understand their unique challenges across every aspect of the cannabis industry.  

365 Cannabis is powered by Microsoft, so our cannabis partners can take advantage of the suite of Microsoft business platforms, reporting capabilities, and fully integrated suite of support. Aside from the well-grounded tech, the team is powered by cannabis veterans from across North America who are dedicated to the industry’s success.