The T-Word That’s Shaking Up Cannabis Supply Chains
In Episode 23 of the digBiz Podcast, things get real. Hosts Jason and Chris welcome Ian Ray from 365 Cannabis to unpack the T-word - yeah, tariffs - and how they're impacting cannabis producers across North America. From skyrocketing import fees to ERP-based scenario planning, this conversation dives deep into the turbulent waters of global trade, vendor trust, and why controlling your data and supply chain might just save your business. Packed with hard truths, sharp insight, and a few laughs about house shoes, this is an unmissable listen for anyone in Canatech or cannabis production.
Timestamp summary:
DigBiz Podcast Episode 23: "The T-Word Episode" - Topic Index
Key Themes we touched on:
Control vs Dependency - Recurring theme about business control
Data Integrity - Importance of proper data models
Scenario Planning - Using technology for contingency planning
Market Maturation - Cannabis industry evolution and sophistication
[00:00:50 - 00:02:40] Tariffs Impact on Cannabis Industry
- Why tariffs affect cannabis despite local production
- Hardware imports (cartridges, papers, cones) from China
- Price doubling scenario ($30k to $75k orders)
[00:02:45 - 00:04:59] Import Process & Payment Requirements
- How tariff payments work at customs
- Cash flow challenges for businesses
- Raw material dependency issues
[00:07:18 - 00:09:12] ERP Scenario Planning & Analysis
- Using ERP systems for "what-if" scenarios
- System 1 vs System 2 thinking concepts
- Data-driven decision making advantages
[00:10:48 - 00:12:58] Contingency Planning & Risk Management
- Entrepreneurial preparedness strategies
- Gaming out multiple scenarios
- ERP=E-Commerce as a contingency planning tool
[00:13:09 - 00:17:03] Supply Chain Alternatives & Compliance Risks
- Challenges of switching suppliers (paper example)
- Compliance testing requirements
- Downstream effects of panic decisions
[00:15:27 - 00:16:44] Domestic Manufacturing Opportunities
- COVID-19's role in creating US domestic suppliers
- Tariffs as behaviour modification tools
- Long-term industry benefits vs short-term pain
[00:20:24 - 00:29:38] Marketplace Fees & Platform Dependencies
- LeafLink's 0.85% transaction fee introduction
- Venture capital business models
- Customer exodus and alternative seeking
[00:31:54 - 00:35:59] Platform Control vs Marketplace Dependency
- Value proposition comparison (Uber vs taxi analogy)
- ERP E-Commerce integration advantages
- Control over transactions and merchant relationships
[00:38:13 - 00:43:01] Data Model Problems & Solutions
- Testing numbers vs actual products confusion
- Marketplace-forced data structure issues
- Real-world example of business transformation
[00:45:15 - 00:48:25] Who Will Succeed in Uncertain Times
- Characteristics of surviving businesses
- Importance of logical adaptation
- Technology advancement since COVID
[00:52:27 - 00:54:40] Primary Source of Truth Philosophy
- Importance of maintaining data integrity
- Avoiding "Frankenstein" tech stacks
- Team communication and product definition clarity
[00:54:46 - 00:58:20] Final Thoughts & Takeaways
- Optimism despite challenges
- System complexity vs simplicity
- Contact information and resources
