Distributor

In legal cannabis markets, distributors are supply chain intermediaries that serve as the bridge between cultivators/processors and retailers. Distributors are licensed businesses responsible for storing, repackaging, and transferring bulk wholesale cannabis inventory like dried flower, edibles, and extracts between different types of state-approved license holders. While they handle transportation logistics and delivery of products, distributors themselves do not actually grow, produce, or sell any cannabis goods directly to consumers or patients. Some states also require distributors to arrange mandatory batch testing at labs before products can go to stores. Efficient distribution networks and operations enable the legal cannabis industry to flourish at scale. Distributors allow different segments of the supply chain to specialize and focus on their core competencies – growers and manufacturers can devote their efforts to maximizing production and innovation while distributors seamlessly handle fulfillment and regulatory compliance.