With cannabis becoming legal in many parts of the US, the vaping industry has gained a winning advantage. Cannabis vape products are popular, despite the availability of options like edibles, drinks, tinctures, and topical products.
There’s always scope for a good product and cannabis vaping has maintained its popularity with a steady customer base. So, if you are wondering if it’s worth investing in or expanding your vape manufacturing business, yes, it is worth it.
In fact, it is an opportunity you shouldn’t miss out on, considering the inclination toward the legalization of cannabis and growing research regarding its health benefits. Expect big competition out there because many entrepreneurs want to join the bandwagon.
In this article, we will cover three tips to boost efficiency and boost profits. Let’s dive in.
1. Automation Ramping Up Production Processes
While the cannabis market is still growing, the demand will likely increase going ahead. Being ready to ramp up the production process is the only way to keep up with the demand once cannabis gains traction in your location.
As with any other enterprise that manufactures a product, automation is the future. Most entrepreneurs realize this, but the challenge is understanding where automation can be most effective. This is because it is possible to fully automate the majority of an operation, but doing so may not be practical.
Depending on the scale of your facility, you have zones for distilling, mixing, loading, and packaging. Generally, it’s the loading stage that tends to be the most time-consuming on your team. This makes it a perfect target for automation since you can invest in automated vape cart-filling equipment.
Terrapin, a cannabis company from Colorado, doubled its daily output by using automation equipment from Vape-Jet, a popular option for automation equipment among vaping and cannabis businesses. It is indeed possible to dramatically boost your efficiency with just simple automation implementation.
2. Investing in Just-in-time Delivery Systems
As a manufacturer, one area that you can really boost efficiency is by switching to a JIT delivery model. Essentially, you ditch stockpiling ingredients and have them delivered to you exactly when you need them in the production process.
According to a Melius Research analyst, Scott Davis, manufacturers who switched to the JIT mindset saw an 84% increase in cash flow.
The point here is that unless the market experiences another supply chain issue like we saw during COVID, the JIT model boosts efficiency and profits. It’s the direct opposite of the “just in case” inventory management strategy.
Moreover, if vaping businesses are seeing a slump, it only makes sense to cut your losses from stocking excess ingredients. It’s a simple solution that’s easy to implement, which makes it an obvious choice for any manufacturer.
3. Knowing How to Optimize Production
With JIT deliveries taking care of raw material waste, your next area of focus can be on maximizing production. This will naturally include looking into your testing and storage practices. Cannabis testing is critical because it ensures the safety and quality of products.
Testing is going to be particularly important due to the fact that nano-sized metal particles such as lead, nickel, and zinc have been found in cannabis vapes. These contaminants seem to enter the product even before heating occurs, and the health consequences can be severe. Testing oversights have been reported in California, and as a manufacturer of cannabis vapes, you don’t want to be in the news for the wrong reasons.
You might be optimizing production in other areas, but it would all be for nothing if an inspection check required you to discard your stock.
Similarly, when it comes to storage, you are looking for a stable temperature that’s neither too hot or cold. To a certain extent, improper storage can affect your production efficiency when you have to discard damaged vapes. This is why nitrogen flushing your containers before sealing them is something worth looking into. The purpose is to remove oxygen to prevent oxidation and thereby extend the shelf life of your vapes.
At the same time, ensure you have someone monitor your stock regularly as an added precaution. Remember, unlike dispensaries, where it’s relatively easy to find new customers, it can be tough to replace a client who no longer trusts your products. A lost client cuts into your production efficiency more than a little investment into good manufacturing protocols.
To sum it up, cannabis dispensaries around the country are diversifying their offerings due to stricter regulations. Many of them are exploring niches like CBD wellness products, artisanal teas, and the like. However, vape products continue to go strong.
As a manufacturer of vaping products, it’s probably a good idea to start thinking about broadening your scope. Take the future into account when you invest in these efficiency strategies.
