How to find the right cannabis licensees to strengthen your supply chain

Building a strong, reliable, and streamlined seed-to-sale supply chain in the cannabis industry poses unique challenges for licensees. One of the biggest challenges is finding other cannabis licensees to consider for growing, manufacturing, testing, distributing, selling, supplying, and more.

The reality in this industry is that it can take a long time to find the right supply chain partners that cannabis store owners simply don’t have. Finding the right partners, however, must be a top priority.

Cannabis companies need to find the best licensees to fill important gaps in their supply chains so they can be as successful and profitable as possible.

Factors to consider when building your supply chain

There is a lot to consider when choosing supply chain partners, and you need to do some homework before you begin creating a list of potential partners. Here are a few things to keep in mind:

• State regulations
• State Licenses and Local Permits
• Compliance systems
• Seed-to-sale tracking software
• Experience
• Pricing
• Financial stability

Depending on the state you operate in, the factors to prioritize when choosing supply chain partners can change, and of course each state is different. The first step is to determine what you need and want from partners and the next step is to find them.

How to find the right partners for the cannabis supply chain

Here are four ways you can find the right cannabis license holders to strengthen your supply chain and gain confidence that you are working efficiently, legally, ethically, and profitably:

1. Network in person and virtually with professionals in the cannabis industry

Attending in-person and virtual events is an important part of your company’s success in the cannabis industry. Many cannabis industry professionals, representing a wide variety of licensees, attend events in the United States and around the world to network, build relationships, learn about new businesses, and find supply chain partners.

With this in mind, you should attend industry shows and conferences to learn about opportunities, generate new ideas, and build relationships that can improve your supply chain now and in the future.

Due to the ongoing coronavirus pandemic, many events have of course been postponed to virtual gatherings. Regardless of the online format, they are still just as important to your success.

2. Use technology to your advantage

Technology is essential to effective supply chain management in the cannabis industry. In addition to tracking seed-to-sale, the technology can help you find and review partners in the supply chain.

For example, Cannabiz Media offers free license holder subscriptions that provide access to license holder information from the Cannabiz Media license database so that cannabis companies can build relationships with other license holders, review licenses, and keep up to date with the local cannabis market news and terms.

In addition, the Cannabiz Media License Database offers a compliance verification API that allows you to quickly and easily access the most accurate license information and confirm the operational status and details of government-licensed cannabis and hemp companies. There is no faster or more reliable way to get the information you need to comply with legal requirements and make important business decisions, including decisions about your supply chain partners.

You can also use websites like Leafwire (a social networking site for professionals in the cannabis industry) and LeafLink (a digital marketplace for cannabis brands, distributors, and retailers) to connect with various licensees, build relationships, and review supply chain partners.

3. Do research and communicate

In addition to using the Cannabiz Media License Database to review license information and identify license holders and their employees, do your research online to learn as much as possible about companies you are considering for your supply chain.

Reading online business reviews can help, but keep in mind that many online reviews are fake. Hence, you need to go a step further to verify the authenticity of reviews and testimonials. Look for documented references and experiences – both for companies and the people who run those companies. For example, you can use LinkedIn to verify people’s credentials.

It is important that you contact the license holders directly by phone and email and get to know the executives of each company. Look for partners who will improve the efficiency of your business and help you remain flexible enough to evolve with the industry.

4. Hire strategically now and develop internal talent for the future

Cannabis companies can benefit greatly from this by hiring well and developing in-house talent for supply chain management. That means you need to hire qualified and experienced supply chain professionals. A great supply chain professional can set up your supply chain network, negotiate with suppliers, manage contracts, monitor costs, use technology, improve efficiency, and much more.

According to supply chain recruitment firm Argentus, fast-growing cannabis companies need people who:

• Scale the business and quickly grow supply chain operations while keeping costs under control
• Build logistics networks
• Build supplier bases
• Negotiate with suppliers
• Manage supplier contracts
• Increase warehouse and sales distribution
• Navigate the regulatory environment
• Negotiate raw material prices in the industry

The bottom line is that supply chain managers who know what they’re doing can improve efficiency, reduce risk, and lower costs.

Consider Laurence Wolfe, Senior Vice President of Manufacturing and Supply Chain for Acreage Holdings. Before entering the cannabis industry, he held senior supply chain positions at Heineken and Gartner. As the industry continues to grow, more and more companies are learning the importance of supply chain management talent to running a successful business, and their hiring practices prove it.

Essential Insights to Finding the Right Cannabis License Holders to Empower Your Supply Chain

In any industry, a company is only as strong as its supply chain, and the cannabis industry is no different. If part of the value chain is weak or interrupted, the entire chain can collapse.

Therefore, it is critical that companies find the right cannabis licensees to build their supply chains – partners who can help them mitigate risk, ensure continuity, streamline costs, and consistently meet expectations.

To see how the Cannabiz media license database can help you improve your supply chain, Schedule a free demo today!

‍ Originally published 6/12/19. Updated on 6/4/21.