6 ways cannabis brokerage bridges the gap between suppliers and buyers
The legal cannabis industry is still new and growing, and like any budding industry, there can be challenges for those seeking to make their mark. However, cannabis brokerage companies can help by bridging the gap between those on the supplier side of the industry and those who are buyers.
Tamerlane Trading is the industry’s first quality verified marketplace, and is firmly entrenched in Washington State and expanding current operations in California with Oregon soon to follow. Slow expansion has enabled the company to build a quality, “one-stop” transactional experience that provides buyers with quality verified cannabis, while keeping a sharp focus on the supply side. Below, discover six ways Tamerlane benefits the supply chain from supplier to buyer.
1. A FARMER FIRST PHILOSOPHY BENEFITS THE WHOLE SUPPLY CHAIN
Tamerlane’s brokerage services help its farmers thrive in a highly competitive, rapidly evolving market. Jhavid Mohseni, Tamerlane Trading founder, believes the foundation of a healthy industry starts with farmers, and as such his philosophy is “farmer first.” What this means is that by focusing on what’s good for the farmer, and having a healthy farmer, the rest of the supply chain remains healthy as well.
This benefits the buyers too, because as Mohseni says, “If you have a foundation that's solid and strong, then anything you build on top of that is going to be more reliable and more consistent. When buyers are looking to source material, if there's not a strong foundation and growth from the farmer’s and grower’s perspective, then the buyers will have less options, they'll have less diversity, they'll have less sources.”
This diversity is key for buyers and processors to ensure the supply chain has not only the specific product they need, but also that they have it with regularity and consistency.
Tamerlane applies this farmer first philosophy by ensuring fair market pricing to the cannabis industry, so suppliers know they are getting what they deserve for their product. Pricing information is cumulative and aggregated from material being bought and sold across thousands of transactions that flow through the Tamerlane supply chain. In addition, buyers are vetted, so suppliers can feel confident in knowing their orders are confirmed and payments will be secure
2. USING A COMMON LANGUAGE
A common language is new to the cannabis industry, in large part because the industry itself is so new to legalization and thus standardization and transparency.
Mohseni says that, “common language has become one of the cornerstones of Aperon’s mission to standardize the industry and the supply chain. The reason that's important is because we all need to make sure that we understand that we're talking about the same thing.”
One of the ways Tamerlane facilitates this common language is by employing Big Tree Grading to standardize all material according to the International Cannabis and Hemp Standards (ICHS). Around 95% of the material Tamerlane sources and sells has been standardized by Big Tree. With buyers and suppliers speaking this common language, Tamerlane helps to build trust and prevent miscommunications by ensuring everyone knows exactly what they are getting.
3. QUALITY VERIFICATION
A quality verified supply chain ensures transparency, consistency, reliability and ultimately builds trust within the industry. This is why it is one of the most important services that Tamerlane offers.
So what does quality verification mean? For Tamerlane, it means they have put eyes and hands on every single bag, every single ounce and gram of cannabis that’s being sold through their supply chain. Mohseni acknowledges that this takes a lot of work, and qualified, trained people willing to be out in the field, using a common language and common standard.
Tamerlane offers this through their partnership with Big Tree, who’s sought after services are included for Tamerlane clients. In addition, quality verification is made possible through Tamerlane’s relationship with their suppliers, who are willing for this grading process to take place.
Mohseni says the reason why quality verification is important to Tamerlane is because of the, “consistency and reliability that comes with quality verification. Before we quality verified every single lot, we would have returns. We would have issues with our orders. As soon as we said all products have to be quality verified -- returns dropped by over 90%.”
Mohseni says Big Tree is Tamerlane’s eyes and ears, employing a qualitative and quantitative analysis to every single brand they sell. By working with Big Tree, Mohseni says, “our quality verified supply chain is far more valuable to buyers and sellers than if someone were to work with a random brokerage, marketplace or a one-man-band.”
Ultimately, quality verification increases the fidelity and quality of the transaction. This matters to buyers and suppliers equally, because suppliers want to know that their order is going to go through securely, and buyers don’t want to mess around and wonder if the order will show up as purchased or when it will be delivered. By providing this service, Tamerlane helps suppliers stay focused on growing and preparing for harvest, and buyers stay focused on production.
4. FORWARD COMMITMENT AGREEMENTS
Relationship building is essential to ensuring that every transaction brokered by Tamerlane runs smoothly. Not only is this achieved through materials sourcing and grading, but Supply Chain Director Monica Barry explains that Tamerlane’s forward commitment agreements “essentially guarantee that once a supplier’s product is harvested and ready, they have a buyer--or multiple buyers--lined up for a certain amount of weight every month.”
Mohseni adds that forward commitments extend consistency and reliability further. “We take that same consistency and reliability that happens around one transaction and we extend it to a three month period.”
Forward commitments benefit both parties, Barry emphasizes. On the supply side, farmers are guaranteed a price as well as the assurance and financial peace of mind that their product will move throughout the year, and that Tamerlane is both marketing and building buyer relationships. Buyers are connected to quality material that they can source online, and have the peace of mind that it is quality verified and will benefit their day-to-day sales.
5. ADMINISTRATIVE SUPPORT CLOSES THE GAP
Tamerlane’s high fidelity transactions don’t stop when the buyer hits ‘purchase.’ By providing administrative support, Tamerlane helps close the gap between buyers and suppliers. The team takes care of transactions -- everything from organizing logistics, sending paperwork to the appropriate parties, ensuring payment information is complete, that payment dates are clear, and keeping track of product pickups, deliveries and transportation.
By providing this support, Tamerlane allows buyers and suppliers to focus on their core business rather than managing shipments, sales, sourcing or purchasing. Mohseni says in many ways, Tamerlane is “an extended part of your team, whether you see them as your sales administration or your purchasing department.”
In addition to traditional cannabis and hemp services, Tamerlane also provides complimentary consulting. Cumulatively, the Tamerlane team has visited thousands of facilities, and in that process they have picked up the best practices by watching what’s working well, as well as what’s not.
Mohseni stresses that Tamerlane takes confidentiality very seriously and that they will never share the names of other clients or proprietary information. Integrity is of utmost importance to Tamerlane. However, he says they are happy to share what they have personally learned, and with more than 50,000 hours of recreational business and 50 years of combined cannabis experience, Tamerlane has a lot to offer in the way of knowledge.
Mohseni says, “We're happy to share that with people that want to know it, and we offer it freely during our site visits and during our business building activities with our buyers or suppliers. It is infused in every conversation that we have.”
All in all, Tamerlane is ensuring that the aspirations and dreams of those in the cannabis industry are a fluid, easier, reliable and consistent daily reality.
Tamerlane Trading is the world's first quality verified cannabis marketplace. Our team of cannabis professionals is dedicated to trust and transparency in the cannabis industry.