On April 20th, 2024, marijuana retailers utilizing Dutchie’s e-commerce systems found themselves with widespread outages. Reports from operators revealed that Dutchie’s point-of-sale (POS) software crashed, leaving both online and in-store purchases in limbo and customers frustrated. The outage, as reported by Highly Objective and other reputable sources, impacted their ability to transact, affecting numerous cannabis retailers utilizing Dutchie’s platform and disrupting online ordering and sales operations during the most peak period for the industry. This latest disruption follows a similar instance on April 20th, 2023, highlighting the vulnerability of relying solely on third-party systems. Wendy Bronfein, co-founder of Curio Wellness, likened the outage’s impact to major retailers experiencing technical glitches on their busiest days such as Black Friday.
Financial Implications Were Huge
The financial implications were significant, with Bronfein estimating losses of $80,000 and disruptions to preorders necessitating compliance adjustments. Such incidents underscore the urgent need for industry-wide reforms, particularly in payment methods and banking accessibility. This instance is a stark reminder of the vulnerabilities inherent in relying solely on third-party solutions without a comprehensive IT strategy.
POS systems experiencing serious issues have a substantial impact on retail commerce, particularly when the system experiencing issues is widely used. This was evident in the Dutchie outage, where the ability to transact was significantly hindered for a group of customers local to a specific region, namely cannabis retailers. Transactions representing 165 million dollars were affected, showing the scale of the impact on the industry.
The Power of an Update
However, amidst the chaos, there were success stories. MacGyver Consulting, a Toronto-based firm specializing in retail marketing and e-commerce software, reported that clients who had implemented recommended upgrades experienced no downtime during the outage. This underscores the importance of proactive investment in technological solutions to maintain operations during peak demand periods.
At CTP, we believe in proactive measures to safeguard businesses against unforeseen disruptions. While we cannot prevent outages from occurring with third-party providers, we can ensure that our clients are equipped with the necessary resources and support to navigate such situations effectively. Our chief technology officer emphasizes the need for robust IT strategies to mitigate the impact of issues on critical operations.
It is worth emphasizing that the timing of such outages is often unpredictable and can occur at any time, including weekends and holidays. In the case of the recent Dutchie outage falling on a Saturday (and 4/20 no less!), cannabis retailers faced the challenge of addressing technical issues during heightened demand.
When faced with a critical IT issue, was your IT solution provider readily available to assist you?
At CTP, we operate on a 24/7/365 basis, ensuring that our clients have access to timely support and expertise whenever they need it. Our team is committed to delivering proactive solutions and assisting businesses in planning for contingencies, minimizing downtime, and safeguarding their operations against potential disruptions.
As the cannabis industry continues to evolve and grow, the importance of reliable IT infrastructure cannot be overstated. Whether it’s mitigating the impact of outages, optimizing operational efficiency, or ensuring compliance with regulatory requirements, CTP is dedicated to empowering cannabis businesses with the technology solutions and support they need to thrive in today’s digital landscape.
While the recent Dutchie outage may have posed challenges for some cannabis retailers, it also serves as a valuable reminder of the importance of partnering with a trusted IT provider like Cannabis Technology Partners. With our unwavering commitment to excellence and round-the-clock support, we are here to help businesses navigate the complexities of the digital world and achieve their full potential. Contact us today to learn more about how we can support your IT needs and help you proactively plan for the future.
