Cannabis Supply Chains

360-degree Video
March 10, 2020
A.I. at the Edge
March 10, 2020

Cannabis Supply Chains

Because of federal laws, the largest logistics companies cannot legally serve cannabis vendors

Cannabis supply chain logistics is challenging. Because of federal laws, the largest logistics companies—Amazon, Fedex, and UPS—cannot legally service vendors.

It’s complicated: Cannabis brands must become their own first party distributor and must own all of their own logistics systems (vehicles, warehouses, packaging) or else use specially-licensed third-party vendors. That latter category is catalyzing new business growth.

Local dispensaries are supporting startups that can take orders, authenticate users, and ensure safe and legal delivery to consumers. Eaze and GreenRush are the biggest players in medical marijuana delivery. In 2019, Wayv, a B2B cannabis logistics firm, launched its Dynamic Distribution platform, which helps companies list themselves as third-party distributors for other brands, and automatically runs compliance checks. This will enable cannabis brands to move products within their states more easily.