Understanding Cannabis Logistics: What It Is and Why It’s Necessary

The New England cannabis industry has matured to a point that it requires a fully integrated cannabis logistics plan to make everything in the supply chain flow smoothly. Cannabis logistics make it possible for different business owners in the industry to operate in a more timely, cost-effective, and efficient way. However, there can be some confusion surrounding what marijuana logistics involves. Below is a clearer picture of what cannabis logistics is and what a logistics company like Plymouth Armor Group can offer.

What Is Cannabis Logistics? – A Closer Look

Logistics is a term used to describe the full process of managing how a product is sourced, warehoused, and transported before it gets to the end customer. Cannabis logistics, then, is used to describe the process of managing cannabis product, storage, and transport between all the touchpoints in the cannabis supply chain before it is purchased by a customer.

If you were to track all the paths that cannabis travels before it lands in the hands of the final consumer, you may be surprised by just how much a single harvested plant travels. What starts out at a cultivator after harvest and curing can:

• Head to a warehousing facility for secure storage
• Be picked by a distribution team and prepared for shipping
• Get shipped to a product manufacturing facility for extraction or product conversion
• Go back to a warehousing center post-manufacture
• Make it to a dispensary as store inventory
• At last, make it to the end consumer via in-store purchase or delivery

Making it through all the touchpoints can be a bit more complicated because cannabis is a highly regulated product. Cannabis logistics can be a bit more complex for that reason, but the fundamentals are still the same.

The Different Parts of Marijuana Logistics

There are several aspects of cannabis logistics. Some companies do a good job of offering a robust service model, while others may only offer select services to their clients. Take a look at a few areas of service that may be offered by a cannabis logistics company.

Warehousing

Cannabis logistics usually involves some level of warehousing. However, not all cannabis logistics companies offer to warehouse and focus primarily on transport. Warehousing access can be highly advantageous because it allows for raw flower or bulk products to be stored off-site in a secure location. When the products or raw flower are needed, they can be distributed to their next point in the supply chain.

Cannabis Distribution

Cannabis distribution is focused on distributing product between cannabis businesses. For example, a distributor may handle incoming orders for bulk flower from a manufacturer. The flower is stored on or off-site, but the distributor handles the process of gathering the order, preparing it for shipment, and then transporting that shipment to the manufacturer.

Cannabis Transport

Cannabis transport is one of the most critical components of cannabis logistics. Cannabis transporters get product from one point to the next in the supply chain, whether that is from the cultivator to the manufacturer or from the extraction center to the dispensary. Transport in the marijuana industry must be handled with absolute dedication to complying with state regulations and security protocols. And, not all companies offer the same level of security. Therefore, it is important to evaluate a service provider thoroughly before choosing to partner with them.

Cash Transport

Due to the fact that banking restrictions can mean a lot more cash transactions in the cannabis industry, several in the supply chain can face a need for cash transport. For example, a single dispensary could take in thousands of dollars in cash per day due to a high volume of cash transactions. Working with a cash transporter ensures the large sums of money that leave the dispensary for bank deposit are well-protected along the way in armored vehicles designed for the purpose.

The Difference Between Cannabis Logistics and Supply Chain Management

Supply chain management (often shortened to SCM) is an umbrella phrase used to describe the upper-level tasks in the cannabis industry of sourcing materials, managing product distribution, and ensuring stable inventory for the end customer. However, cannabis logistics is more focused on the physical aspect of achieving these necessary tasks, such as transporting and storing the materials or products.

What to Look for in the Best Marijuana Logistics Company

Finding an experienced cannabis logistics company may be a challenge in some parts of the country where the cannabis industry is not well-established. Therefore, it is always important to know what to look for when looking for a logistics company to partner with in the business. A few important things to ask or consider when assessing your options include:

• How many aspects of cannabis logistics can the provider reasonably handle?
• How much experience does the service provider have in the cannabis industry?
• Does the logistics company offer valuable services like wholesale warehousing or cash transport?
• What kind of vehicles does the company use for cannabis transport?
• What steps does the company take to remain compliant with federal and state regulations?
• Does the company have a good track record with other clients?

Why Trust Plymouth Armor Group for Cannabis Logistics in New England

At Plymouth Armor Group, we’ve already partnered with more than 90 percent of business owners in the Massachusetts cannabis market because clients trust us for their logistics needs. We are fully licensed, insured, and bonded and maintain an exceptional commitment to remaining compliant with everything we do. We transport cannabis and cash in state-of-the-art armored vehicles protected by armed guards, but also offer necessary services like warehousing and distribution. We have extensive experience in the industry and create custom pricing models to suit our customer’s needs.

Ready to discuss how we can help your business flourish? Reach out to the team to schedule a meeting.