Challenges of Transportation and distribution for cannabis companies
Marijuana is already a significant industry in the US, despite several states still having laws against it entirely and other states only allowing medical marijuana. The time is coming when the rest of the states legalizes it. When the last state finally caves, marijuana will be free from too many regulations, and we will truly begin to see how the untethered industry will impact the US. Alcohol creators and suppliers also watch out for that day, but not in excitement. It is thought to be believed that if cannabis consumption goes up, then alcohol consumption will go down. This article will elaborate on the various problems that companies face when trying to supply their dispensary customers.
What are the challenges in transporting and distributing cannabis?
One of the biggest challenges in transporting cannabis is the federal law stating that crossing state lines with cannabis is a federal crime. Drivers that work for dispensaries cannot do this, even if the state they are entering has legalized marijuana completely. Unfortunately, this law also extends to logistics and distribution companies. Companies whose sole purpose is to move cannabis from one location to the next cannot generate substantial revenue with such strong laws constricting their movements. If a dispensary is part of a chain, then that dispensary will have an easier time moving the products between stores. But many stores that sell cannabis are single, stand-alone shops, and they have a harder time with both finding a reliable distributor and being able to pay for their services.
Another major problem that occurs when transporting cannabis is that the product is costly and very valuable on the market. Transporting high-value products, no matter what it is, always carries a certain level of danger as transporting vehicles can be targeted and robbed. The product can be so valuable, that driving it around is like the equivalent of driving an armored truck full of cash.
If you have a product to move, and a dispensary that is waiting for your order to arrive, you’ll need a logistical company to deliver your product to them. But some areas are severely lacking when it comes to cannabis transportation. According to law, cannabis is not allowed to be transported in
Lack of transportation is also one of the biggest problems facing a cannabis grower when the state first makes it legal, as a supply chain has not been set up yet. By allowing distributors to work across state lines, this problem for growers could be wiped out. And if a grower has too much crop but no enough customers, then their hands are tied, and they cannot search for new business in their tristate area. All of these regulations prevent the cannabis industry from reaching its full potential, preventing thousand of jobs from existing, preventing billions in tax dollars from being collected, and hindering small businesses in favor of chains.
In conclusion
Although many laws and regulations hinder the full potential of the cannabis market, dispensaries and logistic companies are doing their best to navigate them so their industry and their business can thrive. Unlike other products that are shipped within states, cannabis products are an extremely expensive item per pound, and the logistics of expensive shipping products bring their own frustrations and problems. But dispensaries have been known to find a supplier quickly, especially since most of their existence has been either extremely regulated under a medical marijuana statute or a shortage due to extremely high demand. Once the government allows for more logistical companies to open when there is more legalization in the nation, then there will be a nationwide supply chain for cannabis.