In the bustling world of Michigan logistics and cannabis transport, few companies stand out like JK Logix. To get an inside look at what makes this company a leader in the industry, we sat down with Torin, JK Logix's facility manager at the Warren, Michigan distribution facility. Torin shared his experiences, insights, and predictions for the future of the Michigan cannabis industry, offering a unique perspective on the challenges and opportunities that lie ahead.
What are some of the most common issues that organizations are dealing with right now in the Michigan Cannabis industry?
1: Payment Processing
I’d say the biggest difficulty I see right now is organizations struggling with the logistics of payment processing. In the cannabis industry, it can be difficult coordinating the communication that comes from the grower to the retail store. A common reason for this is that many growers never even talk to their dispensary partners directly because there are so many different kinds of middle-men that get involved between inventory and invoicing.
JK Logix addresses this by consolidating services and eliminating bloat.
By bringing warehousing, inventory/asset management, compliance, and logistics under one roof, JK Logix has been able to significantly cut down on how many cooks are in the kitchen while providing attractive price points for bundled services. We also regularly step in to make sure everyone up and down the supply chain has the right information to remove any friction between the growers and stores by creating clear processes that meticulously track every gram and every dollar that flows between the two.
2: Regulation (or Lack Thereof)
The regulatory landscape for cannabis is another significant challenge. Since marijuana is still not legal on the federal level (although signs are pointing to some big changes on the horizon), there are still many unknowns that can affect the industry. The way that Michigan provides licenses is actually very easy for people to get. This fuels the crazy growth we’ve been seeing, but also some crazy turnover. Tons of new dispensaries pop up and, especially as supply grows faster than demand, lots of dispensaries disappear.
That said, I actually find some excitement in the 'chaos' because we have the opportunity to jump in and help!
3: Product Price Volatility
Compared to most other industries, product pricing in cannabis is extremely volatile. For example, we had a client that saw the cost of a liter of their distillate swing $50,000 over the course of one year! The biggest factor in price volatility is an overabundance of supply that drives the price down. But pricing is also dependent on internal factors like harvest dates and crop yield, which can also fluctuate widely depending on all kinds of variables outside your control.
Looking ahead to 2024 and beyond, what are some of the trends you're predicting for the cannabis industry?
1: Oil and Distillate Are King
The products that are really booming are anything growers can distill into a product like edibles. They’re in sodas, candy, and potato chips. You see shoppers come in from out-of-state, see potato chips infused with THC, and have their jaw drop haha! I think that, along with Colorado and California, Michigan is a leader in the cannabis food market.
2: Trademark Infringement Lawsuits
If you’ve ever spent time looking at the designs and names of cannabis strains, you’ll obviously notice there’s a lot of parody names that play off of other, non-cannabis related brands. Some brands are fine with it, but others get pretty protective, especially when they operate in the food & drink industry and are worried about customers mistakenly thinking some of their products have THC in them.
What's your favorite part about working at JK Logix?
Well, not to sound too cheesy, but we're growing like a weed :)
The growth and the company environment is addictive and has kept me solidly here through any ups-and-downs. Since I joined the team a couple of years ago, we’ve taken our armored transport fleet from 6 to 23 vehicles. It’s a fast-growing company in a sometimes cutthroat industry, and it feels good to be with the winners.
JK Logix Leadership Sets an Example
You won’t find the JK Logix leadership ever coasting. They are always going the extra mile to do what it takes to make clients and employees successful.
One specific example happened about two years ago. There was a major player in Michigan cannabis that quickly moved into recreational sales. As soon as they got the green light to start selling, they hit us with a massive shipment (about 600-700 packages) that needed to be turned around in a day!
It was all hands on deck. Leadership set an example by immediately stopping what they were doing to unite the whole team and rolled up their sleeves to get the work done. We ordered some pizza and pulled an all-nighter to make it happen on time and met every one of the client’s needs.
When everyone has the same type of 'this will get done and we will do it' mentality, it creates the kind of camaraderie that makes us successful. I never thought I’d be a ‘go above and beyond’ type guy, but the type of work bondsmanship that JK leadership has built makes it easy.
Conclusion
For those interested in joining a company that values hard work, innovation, and camaraderie, or for logistics professionals seeking to understand the intricacies of the Michigan cannabis landscape, JK Logix stands out as a beacon of excellence.
If you’re considering a career at JK Logix or want to learn more about how they can help streamline your cannabis business operations, don’t hesitate to reach out: 517-574-5930.
With leaders like Torin at the helm, there’s no limit to what we can achieve together.
