The Cannabis Industry & 3PL Transportation
When a licensed cannabis manufacturer completes the final packaging of their products or a cultivator completes post-harvest tasks for a fresh batch, there's an urgent need to efficiently distribute these items. This process entails delivering products to licensed facilities across the state of Missouri.
Here are 3 essentials for operators to consider when deciding on a third-party transportation company:
Compliance: The delivery of high-value items is a significant responsibility, accompanied by substantial liability. It is imperative for cannabis license holders to guarantee that their third-party provider strictly adheres to in-state compliance requirements concerning their drivers, vehicles, and standard operating procedures. This helps ensure smooth transactions and helps mitigate any unexpected variables.
Communication: When an operator requests a delivery, they may wonder about the turnaround time for receiving manifest information and when the delivery can be completed. They may also consider the driver's ability to maintain an open-line of contact with the originating facility. This open line of contact allows issues to be resolved on the spot. Does your third-party provider offer same-day deliveries? Does your third-party provider only service specific areas of the state during specific times of the week? When an unexpected delay occurs, how do they communicate with the originating facility and the destination facility? These are important questions to consider when making a decision on a third-party provider. Punctuality and meeting deadlines are vital for maintaining the smooth flow of operations.
Customer Service: When considering customer service, it is important to think about how the delivery driver will engage with others. Will they proudly represent your brand with dispensary staff and security? Will they have a 'cool, calm, and collective' manner after long hours on the road? Will the drivers help with unpacking and opening boxes? Ensuring the destination facility is comfortable with the third-party provider drivers is a top priority on every transporter's agenda. It is also important to understand the types of products being transported. Different products require certain measures of quality control, from chocolates to concentrates; it is important to know the specifics of the product so that the product arrives in the same manner it was originally packaged in.
While many brands have found success in handling transportation internally, there are necessary conversations that must take place within a company to ultimately help decide the best path forward for their organization. Below, are a few more thoughts to consider when making your decision on a third-party provider.
Maintaining and insuring multiple vehicles used in transportation can be financially burdensome, particularly if a vehicle is not being utilized on a daily basis. Handling transportation internally often involves reassigning an employee from their primary role to serve as a driver. This diversion not only impacts their productivity but can also disrupt the flow of the business. Additionally, prolonged delivery lead times can pose issues, as they risk holding onto valuable inventory that could otherwise be sold.
Many third-party providers effectively tackle these challenges by leveraging their strategic network of partnerships with licensed cultivators and manufacturers throughout Missouri. This state-wide network enables third-party providers to extend a cost-saving opportunity to cannabis operators considering a transition to a trusted third-party provider. When transporters are serving manufacturing labs and cultivation facilities from St. Louis to Kansas City, they are able to optimize their routes to offer deliveries typically at a lower cost than what operators would incur for only fuel and labor when managing these operations in-house.
With a third-party provider, operators can focus on their core tasks while the transporter takes care of all logistics, making your business more efficient and cost-effective. Licensed Missouri cannabis operators can gain and retain value by outsourcing their transportation needs to a third-party provider. This decision grants them access to a dedicated logistics team, staffed by professional drivers, and a secure fleet of vehicles. These components collectively ensure that all products are transported compliantly and in a professional manner, reaching their destinations on schedule, and in the same pristine condition as when they were initially packaged. While all businesses have their unique needs, third-party transportation providers are well-positioned to contribute substantial value to cannabis brands throughout Missouri.
