Distribution is a critical part of the “supply chain management” of the cannabis industry. Supply chain management refers to the processes needed to maintain the flow of goods from point of origin to point of consumption. Good distribution processes need to do more than transport cannabis from point a to point b, distribution will involve tracking the flow of 3 major areas to ensure sound logistics and reporting:
- Product flow - This involves reporting on the creation and movement of a product from inception to delivery.
- Information flow - Included is everything from tracking important data points from production to maintaining orders and deliveries.
- Financial flow - Consists of any currency related aspects such as the cost of production, credit terms, payment schedules, tax collection etcetera.