3 Costly Hemp Manufacturing Supply Chain Blunders

American Hemp Manufacturing

And while your business expertise is invaluable, the hemp manufacturing supply chain is like the wild west.

So you want to get into CBD Manufacturing?

You’re not a wantrepreneur that’s thinking about “dipping their toes” into the CBD industry. You have the capital and know how to get a brand off the ground and running.

Everyone from farmers up to manufacturers processing the plants is looking to make money off the public’s booming interest in CBD.

While managers of traditional businesses have more supply chain software and management services than Oprah has product recommendations, CBD businesses lack the benefits that come with decades of market growth.

The Top 3 Hemp Manufacturing Supply Chain Mistakes

A recent poll taken by Green Entrepreneur Magazine found CBD purchasing managers spend an entire day of every work week just making calls and sending emails to their suppliers.

There is no logistics software for CBD companies in place, so everything has to be done manually.

It all goes back to hemp farming regulations and CBD manufacturing regulations. This article will give you an idea of the hemp supply chain map.

Let’s take a look at some of the most common problems purchasing managers have with their CBD supply chain

1. Underestimating the Demand

cbd manufacturing process

Canada is a perfect example of how industry leaders underestimated the enormous demand for CBD products.

The country’s cannabis act legalized the recreational use of cannabis. But licensed sellers had no idea the demand for CBD products would surge as well.

In the U.S. a similar situation is arising. Even with farming experience, new hemp farmers are using inefficient methods of growing industrial hemp.

Many are treating hemp like any other crop, but industrial hemp doesn’t need to look nice like grocery store produce.

It just needs to have high concentrations of CBD without too much THC coming along for the ride.

2. Taxes

While hemp chain farms have been freed from shackles of schedule 1 designation, farmers can’t just decide to throw down some hemp seeds next to their corn and potatoes.

The Farm Bill still requires hemp farmers to be licensed. If your supplier is operating without a license your business isn’t going to be able to make the same kinds of tax deductions available to all other businesses.

Why?

Because the IRS prevents businesses from making deductions when it comes to transporting schedule 1 and 2 substances.

3. Importing from Countries with LAX Regulations

China is by far the world’s largest producer of hemp with over $1 billion in sales. But if your Hemp manufacturing supply chain relies on Chinese hemp, you could be exposing your customers to some of the most polluted soil in the world.

This doesn’t matter so much when it comes to China’s main use of hemp: clothing. But ingesting nutraceuticals made from these plants can expose you to high levels of cadmium and other heavy metals.

Avoid Mistakes in Your Hemp Manufacturing Supply Chain

Hemp Manufacturing USA

Hemp manufacturing supply chains are in their infancy, but demand is already in full force. As the industry continues to grow, companies that can’t keep the problems listed above under control are destined to be pushed out of the market.

This doesn’t have to happen to your business. When you partner with Spring Creek Labs you can avoid all the common CBD supply chain problems.

Why? We partner with US based farmers that have grown hemp for years.. We test everything in-house. You never have to worry that what you’re getting will test over 0.3% THC or contain unlisted ingredients.

Not all CBD manufacturers are Good Manufacturing Practice (GMP) certified, but we are.

Don’t poison your customers with cadmium-laced CBD products. Email us now for a free quote!

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