“The line between disorder and order lies in logistics…” ~ Sun Tzu

Supply chains can be complicated, even more so when it involves cannabis products. While the industry continues to evolve at a fast rate, supply chain management and best practices for a lot of dispensaries do not align with this growth.

With the many legal requirements and regulations that are ever-changing, making sure that your business is compliant is one of the more prominent barriers for large cannabis companies to mom-and-pop operations.

What Is Supply Chain Management?

Supply chain management is the active oversight of goods, information, and finances as they flow from supplier to consumer and everything in between.

As stated in the opening, SCM can be a complicated and also a broad topic to discuss depending on your niche and business model.

Concerning the Cannabis Industry or more specifically Medical and Recreational Dispensaries a supply chain flow could be the following:

Seed Providers > Cultivators > Extract/Edibles > Lab Testing > Distribution/Packaging > Dispensary > Consumer

The individuals/organizations involved in your SCM, if managed correctly will make the physical, informational and financial flow more efficient in regards to cost, time and coordination.

Supply Chain Management & Dispensaries

As the distributor of Cannabis products, dispensaries are responsible for the quantity, quality, inventory, tracking and record keeping to assure consumer trust, protection, and business growth. For dispensaries that cultivate their marijuana, packaging, labeling and testing would also be within the scope of an internal supply chain.

As more recreational and medical dispensaries open up for business, the responsibility of education, quality control and distribution to consumers and patients falls on the shoulders of dispensary owners. Proper labeling and having the ability to identify and measure product safety and desirable effects are essential.

Any items crossing the point of sale (POS) should have some type QR Code or similar technology which shows on packaging or receipts. Strict record keeping and labeling will give you valuable insights into which products are crossing the point of sale and how often.

Supply Chain Management & Consumers

Your SCM will need to be developed with the consumer in mind. Consumers and patients should have access to the traceability of any cannabis product they are using.

Some consumers will not have the ability to inform themselves on how to consume cannabis products properly. Being able to provide this information ensures the growth, innovation, and safety of not only you and your customers but the cannabis industry as a whole.

Consumers want to know about the products they are consuming from the labeling of ingredients, lab testing to the seed provider.

Supply Chain Best Practices

While several best practices exist regardless of the industry, we have listed some core beliefs that a supply chain should have.

Align Your SC With Your Company Strategy

Whether your goal is to improve inventory turns or reduce disruptions, your supply chain should be in sync with your long-term strategy.

Focus On Strategic Relationships

Building a solid rapport with providers in your supply chain will help streamline processes, simplify negotiations or bids and avoid delays.

Optimize Supply Chain Cycles

Being able to recognize an optimum quantity and short supply chain sequence is critical if your business wants to eliminate overstocking or understocking of inventory and ensure maximum use of resources at reduced costs.

Technology Is Your Friend, Use It

Implementing an Enterprise Resource Planning (ERP) system such as Yobi’s cloud-hosted software allows dispensaries to create intelligent forecasts based on historical data which allows for better decision making in regards to the procurement of goods and optimal stock levels.

Traceability Matters

Whether it is internal or external, being able to trace products accurately will have a direct effect on the recovery or recall on any supply chain disruptions. Agility matters when dealing with risk assessments in an operating environment.

Transparency Matters

While traceability or lack thereof can influence disruptions more negatively, clarity can affect consumer and stakeholder trust in a company’s image and reputation. Being able to provide information when requested is the foundation of a reliable supply chain.

How Yobi Can Help With Supply Chain Logistics

Being able to streamline your supply chain allows for better visibility, control, and productivity over your inventory and business operations.

Yobi’s Software can help:

  • Consolidate and centralize specific inventory management processes. Your distributor’s file structure allows for automatic inventory updates without the need to manually add items.
  • Efficiency by spreading out your sales process and role-based authority so your budtenders can do what they do best while someone else can focus on order fulfillment and other business aspects.
  • Build stronger consumer relationships by allowing sales reps to view key performance indicators such as past ticket sales and the types of products previously purchased. Providing the ultimate shopping experience from the moment they walk through the door until they exit the store.
  • Scale your business regardless of the number of employees or registers you may have at no extra cost.
  • Track all customer actions and orders in real time.                                                       


We understand the retail cannabis business and the importance of healthy supply chain principles. Our software makes everyday processes simple and efficient which will help you grow and scale your business.

For more information on how Yobi can improve your dispensary operations, feel free to contact us with any questions you may have or to try out a demo.

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