In today's dynamic cannabis landscape, characterized by heightened regulatory demands and consumer expectations, Quality Management Systems (QMS) play a pivotal role for operators, mitigating risks, driving operational excellence, and ensuring adherence to production standards and best practices.
Despite the undeniable significance of QMS, its market adoption faces several barriers. Let’s delve into four major obstacles impeding the widespread acceptance of QMS in the cannabis industry.
Breaking Barriers: Unleashing the Power of QMS
Barrier 1: The Perception that "Quality Does Not Sell"
A prevailing misconception in the cannabis industry is that consumers prioritize factors like price and potency over quality assurance measures. However, this overlooks the growing demand for safe and consistent products among consumers and the potential brand damage caused by repeated complaints or product recalls.
According to aggregated data, businesses that have implemented C15 Solutions’ QMS have seen significant improvements on average, including a decrease in customer complaints by 42%, unplanned deviations by 25-35%, and corrective and preventive actions (CAPAs) by 45-55%. Additionally, many customers have been able to reduce investigation
times from an average of 30 days to close vs. 7 days to close.
C15 is reinforcing Philip Crosby’s ‘Quality is Free’ adage; in most cases, the system pays itself back!
Check out more stats in C15’s annual customer ROI case study for a large, multi-site company.
Barrier 2: A Focus on Seed-to-Sale or Tracking Solutions
Seed-to-Sale systems are valuable tools for tracking product movement and preventing diversion, but they fall short of addressing the critical aspects of product quality, safety, and consistency. Similarly, Enterprise Resource Planning (ERP) and Point of Sale (POS) systems focus primarily on financial reporting and sales management, respectively. While Learning Management Systems (LMS) often lack specificity and fail to meet the compliance standards set forth in 21 CFR Part 11.
QMS, on the other hand, offers a comprehensive solution that improves productivity, reduces the cost of quality, and ensures product consistency across multiple markets. C15 Solutions also knows it is imperative for organizations to implement Employee Health and Safety (EHS) systems that incorporate OSHA reporting capabilities, which is why C15's EHS module seamlessly integrates with the OSHA online portal, ensuring compliance and maintaining workplace safety.
By integrating key components of the IT stack, such as batch records, suppliers, and equipment, QMS bridges the gap and establishes a robust foundation for quality assurance.
Barrier 3: Governance and C-Suite Ignoring Liabilities
Governance and C-Suite executives may not fully comprehend the liabilities associated with non-compliance or product safety issues. This lack of awareness often leads to inadequate investment in QMS. However, the consequences of poor quality management can be severe, ranging from false content of THC and label errors to supply chain risks and a lack of trained employees.
C15 is dedicated to enhancing the quality, safety, and consistency of all cannabis products by implementing best practices through the use of QMS. While maintaining the current minimum standards of Good Production Practices (GPP) and Good Manufacturing Practices (GMP), widespread adoption of QMS would instil every producer with superior economics and best practices, ensuring a higher standard across the industry.
As the cannabis regulatory regimes and private sector players strive for larger-scale operations, it becomes imperative for producers to establish robust partnerships with technology experts. These partnerships will enable producers to navigate the evolving landscape and meet the increasing demands of the industry. By doing so, they can effectively mitigate insurable risks and protect their businesses.
To learn more, read C15’s open letter to cannabis companies on risk.
Barrier 4: Budget Constraints as a Limitation to Productive Technology Investment
Budget constraints have often limited investment in productive technology within the cannabis industry. While the focus has been on diversion tracking, it is now imperative to shift attention toward technology that focuses on production productivity.
Notably,
New York and New Jersey have made it mandatory to incorporate QMS into their new cannabis regulations, emphasizing its significance in the industry. Industry bodies like the
ASTM Committee D37 on Cannabis are also recognizing the importance of QMS and its role in promoting standardized practices.
C15 has demonstrated remarkable case studies in which customers have achieved significant reductions in the time required to address deviations, conduct investigations, and bring high-quality products to the market. Manual processes that once took weeks or even months have been streamlined to as little as 3 to 5 days.
Learn how C15 reduced Vantage Hemp Co.'s time required to close investigations.
Through collaborative efforts with various cannabis sector brokers, C15 has witnessed insurance underwriters lower the risk ratings (and discount certain policy premiums accordingly) of companies who have implemented C15's QMS. This trend indicates a growing recognition of the effectiveness and reliability of QMS in mitigating risks.
The ultimate goal, often referred to as "a Holy Grail," is to ensure that products reach the market immediately after production with 100% compliance and without compromising quality. Achieving this level of efficiency and integrity is made possible through the implementation of a state-of-the-art QMS solution and optimized processes.
Why Embracing QMS is a Strategic Imperative for Modern Businesses
Based on comprehensive data spanning over four years and encompassing more than 4,000 users across five countries, C15's QMS consistently delivers exceptional return on investment (ROI). On average, the ROI exceeds 750% per annum (often surpassing 1,000% by the second year of implementation!) which further validates the substantial benefits of deploying a QMS solution.
Embracing QMS is not just an option but a necessity. It is a strategic decision that can transform businesses, positioning them for long-term success. By prioritizing education and informed decision-making, organizations can navigate the challenges of change and future-proof their business.
