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Cannabis Business Insights | Friday, February 21, 2025
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Fremont, CA: Cannabis sales in the U.S. reached an impressive amount, marking an increase from the prior year. The cannabis industry is undeniably among the nation's quickest-growing sectors. While cultivators, processors, and retail dispensaries play crucial roles in these sales, they represent only a fraction of the industry. Effective cannabis logistics are essential for the smooth operation of these businesses, enabling the entire sector to thrive.
The handling of cannabis and associated goods during transit between links in the cannabis supply chain is known as cannabis logistics. As a result, logistics related to cannabis may include distribution, warehousing, transportation, and even the delivery of cash to and from dispensaries. For many in the sector, cannabis logistics solutions are a crucial component of a strong business plan. Furthermore, the necessity for logistics solutions is always expanding due to the cannabis industry's huge expansion.
Cannabis Logistics
Logistics is the entire process of controlling a product's sourcing, warehousing, and transportation before it reaches the final consumer. Therefore, the term "cannabis logistics" refers to the process of handling cannabis products during their storage and transportation across all of the supply chain's touchpoints before a client makes a purchase.
You might be shocked to learn how far a single harvested plant goes if you were to follow every route cannabis takes before reaching the hands of the end user. Following harvest and curing, what begins at a cultivator can:
● Visit a warehouse to store your belongings securely.
● Get a distribution team selection and preparation before shipping.
● Be transported to a factory that makes products to be extracted or converted.
● Return to a warehouse once the product is manufactured.
● Deliver it to a dispensary as stock for the store.
● Make it to the final customer by delivery or in-store purchase at last.
Being a highly regulated substance, cannabis might make it more difficult to navigate through all the touchpoints. Because of this, cannabis logistics can be somewhat more complicated, but the principles remain the same.
High Demand and Limited Supply for Cannabis Logistics Companies
Cannabis logistics companies are few in some regions despite being an essential component of the cannabis supply chain. In most places, getting a license, following rules, and investing in fleet cars, warehouses, and tracking devices is difficult. For this reason, big businesses frequently find themselves catering to a sizable portion of a single state.
The cannabis supply chain encounters a similar problem in many places: although the substance is readily available, it isn't always transported fast enough to meet the enormous demand. Regrettably, this negatively affects companies, clients, and the sector.
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