Strengthen Your Supply Chain in the Cannabis Industry

Establishing a robust and efficient seed-to-sale supply chain in the cannabis industry poses a unique set of obstacles for license holders. Among these challenges, one of the most significant is identifying suitable partners for growing, manufacturing, testing, distribution, sales, delivery, and other operations. Unfortunately, the reality of this industry is that finding the right supply chain collaborators can be an extremely time-consuming process and one that cannabis business owners often cannot afford. Nevertheless, securing the right partners should remain a top priority, as it is vital for businesses to locate the most suitable license holders to fill essential gaps in their supply chains, thereby maximizing their potential for success and profitability. Rukli Distribution is here to assist with your cannabis supply chain needs. Learn more about cannabis supply chain management and get in touch with us today.

Factors to Consider While Building a Supply Chain

When building your supply chain, there are various factors to take into account when selecting your partners. Before compiling a list of potential partners, you need to conduct research. Below are some factors you should consider:

  • Compliance systems
  • Experience
  • Financial stability
  • Pricing
  • Seed-to-sale tracking software
  • State licenses and local permits
  • State regulations

The significance of each factor may differ depending on the state where you operate, as regulations and requirements vary from state to state. Start by determining your supply chain needs and preferences, and then proceed to search for suitable partners.

Steps for Finding the Right Cannabis Supply Chain Partners

Below are four effective methods to find the right cannabis license holders and build a robust supply chain that operates efficiently, ethically, and profitably:

Connect With Industry Professionals In-Person & Online

Attending in-person and virtual events is crucial to network with cannabis industry professionals and discover potential supply chain partners. Industry trade shows and conferences offer opportunities to connect with license holders, learn about new businesses, and build relationships that can enhance your supply chain.

Virtual events, although the format is different due to the ongoing pandemic, are equally important to your success in the industry. Participating in virtual gatherings can also open doors to new connections and partnerships.

Hire Skilled Supply Chain Professionals & Develop Internal Talent

Cannabis businesses can benefit significantly by hiring skilled and experienced supply chain professionals and developing internal supply chain management talent. A great supply chain professional can set up your supply chain network, negotiate with suppliers, manage contracts, monitor costs, leverage technology, improve efficiencies, and more.

Recruitment company Argentus suggests that rapidly scaling cannabis businesses need professionals who can:

  • Scale the business quickly
  • Set up logistics networks
  • Negotiate with suppliers
  • Manage contracts
  • Monitor distribution efficiency
  • Navigate the regulatory environment
  • Negotiate commodity prices in the industry

Hiring the right professionals can improve efficiencies, reduce risks, and lower costs in your supply chain. Companies like Acreage Holdings have hired supply chain management talent to manage their operations, like senior vice president of manufacturing and supply chain Laurence Wolfe, who previously held leadership positions in supply chains at Heineken and Gartner. As the industry grows, more and more companies are realizing the importance of supply chain management talent in running successful operations.

Leverage Technology to Your Advantage

Technology plays a vital role in effective supply chain management in the cannabis industry. Technology solutions can help you locate and vet potential supply chain partners. For instance, Cannabiz Media provides complimentary license-holder subscriptions that allow access to license-holder information from its License Database. This information helps cannabis businesses connect with other license holders, verify licenses, and stay up-to-date on local cannabis market news and conditions.

Websites like Leafwire and LeafLink offer digital platforms to connect with different license holders, build relationships, and vet potential supply chain partners. Moreover, the Cannabiz Media License Database offers a Compliance Verification API, which provides the most accurate license information to meet legal requirements and make crucial business decisions.

Conduct Thorough Research & Communication

Apart from using technology solutions, it’s essential to conduct online research and get to know the companies you’re considering for your supply chain. Reading company reviews can be useful, but you should confirm the authenticity of reviews and testimonials. Check for documented credentials and experience, both for the companies and individuals leading those companies. Platforms like LinkedIn can be beneficial in confirming individuals’ credentials.

To make well-informed decisions, reach out to license holders by phone and email, and get to know the company’s leaders. Choose partners that can enhance your company’s efficiencies and enable you to stay flexible to industry changes.

Hiring the right professionals can improve efficiencies, reduce risks, and lower costs in your supply chain. Companies like Acreage Holdings have hired supply chain management talent to manage their operations, like senior vice president of manufacturing and supply chain Laurence Wolfe, who previously held leadership positions in supply chains at Heineken and Gartner. As the industry grows, more and more companies are realizing the importance of supply chain management talent in running successful operations.

Contact Rukli Distribution Today

If you’re in the cannabis business in California, Rukli Distribution is here to help. We partner with local businesses, offering warehouse services, inventory planning, order fulfillment, pick and pack, and more. Our team proudly works with industry-leading brand partners, and we would be happy to help your business succeed. Contact us today to get started.