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Most cannabis retailers are simply unable to pay their suppliers because their working capital is tied up in inventory. This is rarely due to mal-intent and is often because cannabis is nascent and the market unpredictable. Coupled with a lack of proper business tools, this has contributed to a massive $3.
We must also leverage known solutions that are sensitive to the industry’s specific nuances. In discussing the challenges of the space with our customers, we’ve found forecasting is a root cause of working capital issues and gross margin maximization. To solve the direct pain points around forecasting, incentives and working capital, we launched PoST, or Payment on Sell Through. With PoST, retailers and brands collaborate on their orders based on actual sell-through.
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