Why Precision Matters: A Look Inside Cannabis Manufacturing

As demand for cannabis products continues to rise, research indicates that two factors drive most purchasing decisions: price and perceived quality. A 2022 study by the Journal of Cannabis Research found that cannabis demand is relatively inelastic, though it did not precisely define "quality." However, one thing is clear: cannabis consumers expect the best possible value for their money, and they expect it consistently.

Cannabis production involves thousands of daily activities, especially in the post-harvest stages. From trimming and sorting to packaging and labeling, employees must stay vigilant throughout the process to avoid mistakes. Each task presents an opportunity for error. Precision — meticulous control over every step of production — can prevent these errors from becoming bottlenecks or compliance issues. More importantly, precision helps ensure that consumers get a reliable, high-quality product every time, laying a solid foundation for your brand.

From trimming and sorting to packaging and labeling, employees must stay vigilant throughout the process to avoid mistakes. Each task presents an opportunity for error..

First, evaluate the real reason for undergoing an activity.

For businesses looking to boost profitability, organic growth, and return on invested capital, the key focus should be on activities that add value—and cutting out those that don’t. Value-added activities are those that enhance the unique product or service your company offers. This concept is echoed by business leaders like Jim Collins, who emphasizes core competencies, and Michael Porter, with his tailored value chain approach.

Many cannabis companies might see post-harvest processes as a core part of their business. But a closer look reveals that many of these tasks may be eroding value instead of creating it. For example, does manually placing buds into jars or filling pre-roll tubes truly differentiate your brand? Does developing automation technology in-house make sense, or would your resources be better spent on product development or marketing?

Breaking it down even further, ask yourself: does a particular activity add value? Can you measure and manage the right KPIs? Is the precision required for this task worth the investment?

How will you execute and return value to your business?

Precision in manufacturing drives significant cost savings by reducing waste, errors, and rework. Precision-driven processes also provide a robust framework for scalability, allowing businesses to expand output while maintaining product quality and consistency—two critical factors for long-term growth and success and essential elements for expansion into new markets.

Advanced precision technologies, like robotics and automation, can be valuable tools if they lead to greater production capacity and reduced overhead. However, before making that investment, you need to be sure that you are confident the cost will be justified with increased profitability in the form of increased production and decreased overhead. Otherwise, it may be wiser to focus on your core strengths and let manufacturing experts handle those tasks.