OCS capping pot shop orders and changing delivery window after partner's cyberattack
Ontario's cannabis wholesaler is temporarily capping the number of products retailers can order and expanding its delivery window as it works through a backlog caused by a cyberattack on its logistics partner.
The Ontario Cannabis Store said in a letter Thursday to retailers obtained by The Canadian Press that shops will be limited to ordering no more than 30 packs of product.
"This will create even access to products for all stores and will avoid creating a larger backlog of orders that could delay us from getting product to stores as quickly as possible," said the letter signed by OCS CEO David Lobo.
The backlog was caused by an Aug. 5 attack on the parent company of the OCS's third-party distribution centre, Domain Logistics, which has not responded to a request for comment.
Since the OCS disclosed the attack on Monday, Ontario cannabis stores have been worried the delays will cause them to lose sales and customers because their supplies are dwindling and shops have no choice but to purchase the product they sell from the OCS.
The OCS pushed out a small number of orders last night, but to clear the backlog, Lobo said it will make deliveries seven days a week between 6 a.m. and 10 p.m.
The OCS confirmed the cap and new delivery window on Thursday afternoon.
It noted in the letter it might have to move to a 24-hour delivery window until it has fully returned to standard operations.
The situation has created a headache for pot shop owners trying to make due with limited supply they still have from last week.
Anthony Horvath, the owner and CEO of Tonik Cannabis in Brantford, Ont., has already run out of some products and can't afford to keep a stockpile for unexpected situations like this one.
"We're a small, independent, family-owned business and we only have the one location, so I can't have half a million dollars of inventory sitting here and six weeks worth of back stock for a situation like that," he said.
"In many cases, we order just in time just to keep our inventory costs down."
Horvath has received no indication when his next delivery could arrive, making staffing challenging.
"I may be told at 3 a.m. in the morning expect your delivery guy to come by and we still have to arrange to have someone open up," he said.
The product that gets dropped off will be significantly less than Tonik Cannabis is used to receiving.
Horvath typically orders between 250 and 300 cases of products, much less than the 30 he is being limited to.
He said, "My concern is that even though I placed an order for 30, I may only get 25 because some products simply won't be available, so it's probably going to be even less."
This report by The Canadian Press was first published Aug. 11, 2022.
CTVNews.ca Top Stories
4th Indian national arrested, charged with murder of Hardeep Singh Nijjar
Homicide investigators in B.C. say murder charges have been laid against a fourth Indian national in connection to the killing of Sikh activist Hardeep Singh Nijjar outside a Surrey gurdwara last year.
'I am angry': Alberta farmers will continue fight over world class motorsport resort
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
Man ticketed after allegedly trespassing again at Drake's Bridle Path mansion to get his bike
A man who tried to access Drake’s Bridle Path mansion earlier this week returned to the property Saturday and was apprehended again for allegedly trespassing, Toronto police say.
Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Millions of Canadians have been exposed to potentially toxic chemicals, and they're not going anywhere
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
Biden calls Trump 'unhinged,' says 'something snapped' in former president after he lost 2020 U.S. election
U.S. President Joe Biden on Saturday called Donald Trump “clearly unhinged” and claimed that “something snapped” in the former president after he lost the 2020 election.
Wildfire that forced evacuation of Fort Nelson, B.C., caused by tree falling on wires, mayor says
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
Switzerland's Nemo wins 68th Eurovision Song Contest
Swiss singer Nemo won the 68th Eurovision Song Contest on Saturday night with 'The Code,' an operatic ode to the singer’s journey toward embracing their nongender identity.
IN PICTURES Northern lights dance across the night sky in southern Ont.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.