California cannabis operators are facing a major compliance update with the launch of Metrc’s direct to consumer recall tool. This new feature was announced on Wednesday, August 20^th and changes how cannabis product recalls are managed in California. The tool shifts responsibility from dispensaries to a system driven notification that alerts consumers directly. For operators, the Metrc California recall system represents both an opportunity to build trust and a challenge to manage increased compliance pressure. 

What is the Metrc California Recall Tool? 

Metrc is the state system for California’s cannabis industry. In California, Metrc is used to monitor cannabis from cultivation through retail sale. Historically, product recalls were communicated through dispensaries and regulators, with operators relying on store staff or email chains to notify customers. Metrc is utilizing their partnership with Retail ID to communicate product information. This creates a direct channel straight to consumers from Metrc themselves. By streamlining middle steps, California regulators can deliver faster and more reliable alerts when a product is identified as unsafe or mislabeled.  

Why the Recall Update Matters for Cannabis Businesses 

An interesting side effect of this movement will be the direct visibility users have when interacting with brands and products. Dispensaries have reached varying levels of effectiveness when relaying product updates to customers. Some can be very effective or proactive with recalls while others may slap a sign up on the show floor and call it a day. This initiative thankfully reduces the workload from dispensaries and refocuses the recall discussion to the products and brands. Here are some high-level benefits we anticipate from this pivot:  

• Faster notifications ensure that unsafe products are identified and removed quickly 

• More visibility for regulators strengthens consumer protection and industry transparency 

• Higher compliance standards place more pressure on businesses to maintain clean and accurate product records 

• Reduced labor for retailers as they can advise guests to scan product for recall information, rather than actively communicating to customers 

The Risks Operators Should Consider 

On the flip side of this initiative, brands can anticipate an increased level of visibility with any potential recalls. Brands that have recurring recalls will be repeatedly brought to the forefront of the conversation which may (and should) impact their brand affinity and even market share. The Metrc California recall tool makes transparency unavoidable, meaning operators must be prepared to respond quickly and clearly to prevent brand damage.  

How California Cannabis Operators Can Prepare 

Operators with increased concerns about Metrc California’s recall tool need to zoom out and bring compliance to the forefront. There are a few options but optimizing compliance tools is essential. Many Seed-to-Sale software options focus on solely connecting to Metrc as a safeguard. A full suite ERP, however, goes past the Seed-to-Sale compliance and delivers compliance safeguard across every element of the business. A software tracker that brings in all departments into one source of truth can be leveraged for accurate inventory, batch tracking, and stopping issues before they arise.  

Being proactive is the best defense against the potential disruption of a recall. 

How 365 Cannabis Supports Recall Management 

365 Cannabis helps operators manage recalls seamlessly by combining compliance, finance, and operations in one ERP system. With centralized inventory and batch tracking, compliance integrated reporting, and financial impact visibility, 365 Cannabis equips operators to handle recalls quickly and effectively. Instead of scrambling during a recall event, operators using 365 Cannabis can act with confidence, minimize losses, and protect their brand. 

Where Do We Go From Here?

The new Metrc California recall system raises the stakes for cannabis operators across the state. Businesses that rely on spreadsheets or disconnected software will struggle to keep up with the speed and transparency regulators now demand. With 365 Cannabis, operators gain a trusted ERP partner that ensures recalls are managed with accuracy, efficiency, and accountability. 

Learn how 365 Cannabis supports California operators here.

The post How the New Metrc California Recall Process Impacts Cannabis Businesses appeared first on 365 Cannabis.

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.  

The post How Cannabis ERP Solves 710 Cannabis Supply Chain Challenges appeared first on 365 Cannabis.