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
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Town of Fort Nelson, B.C., ordered to evacuate due to wildfire
The entire town of Fort Nelson, B.C., as well as the nearby Fort Nelson First Nation, has been ordered to evacuate due to an out-of-control wildfire.
Bouchard lifts Edmonton Oilers to 4-3 overtime win over Canucks in Game 2
Evan Bouchard scored 5:38 into overtime and the Edmonton Oilers bounced back for a 4-3 win over the Vancouver Canucks in the second round of the Stanley Cup playoffs on Friday.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.