Cannabis Compliance for Distributors

As the cannabis industry continues to grow, so does the need for distributors, who play a vital role in the supply chain. Cannabis distributors connect growers and retailers while ensuring products get to market quickly and efficiently.


In the rapidly changing cannabis industry, distributors must comply with regulations and ever-changing laws. As the so-called “middle man” of the cannabis supply chain, distributors must understand the state government cannabis regulations for each part of the supply chain they interact with.


The government regulations on cannabis transportation are stringent. Vehicles often must have robust security measures and modern climate-control features. Security regulations often include things like:

  • On-board GPS tracking
  • Additional floor and roof security measures to protect from outside threats
  • Alarm systems
  • Driver cabin barrier
  • Locked cargo caging
  • Live footage surveillance


Dive deeper: Making Data Work in Your Cannabis Distribution Business


Business Licensing

Every state and local government where marijuana is legal requires businesses to secure a license. A distribution license allows cannabis distributors to carry out various tasks that a cannabis dispensary license cannot, specifically transporting cannabis. Specific requirements and fees vary based on the type of business, its operating location, and which government regulations apply.


Often a distributor may purchase cannabis products and may sell cannabis products to authorized cannabis licensees like a dispensary.


How ERP software can help distribution compliance

It’s challenging enough for any cannabis business to get licensed, but compliance requirements only get more complex. From record-keeping to tax reporting to quality tracing and more, cannabis distributors are responsible to their customers and regulatory agencies.

Cannabis distributors need a robust record keeping and inventory management system to ensure every action they take is tracked and recorded correctly. This means monitoring products from logistics to the final point of delivery and includes order tracking and warehouse product movements.


Cannabis distributors transporting products throughout the supply chain must keep detailed records and maintain precise inventory management. As cannabis legalization spreads across the nation, distributors rely on software for automation and accurate financial management and manage every step of the distribution process, including logistics scheduling, order, and product manifests from Point A to Point B.


It’s clear that cannabis distributors face many challenges ERP helps, such as tracking inventory, completing tax forms, and complying with regulations. More distributors are turning to ERP technology to help manage compliance and ensure product quality. ERP software can help distribution compliance by automating and tracking tasks related to shipping and receiving. This can help ensure that all necessary documentation is accurate and up-to-date.


Distributors get a comprehensive system streamlining other critical business functions like accounting, quality control, sales and reporting. Cannabis ERP software can even monitor inventory levels and shipping schedules to help prevent stockouts and missed delivery deadlines.


ERP software systems can help ease distributors’ struggles by automating the basic compliance tasks that waste company time while ensuring that everything is done correctly. By automating routine tasks and providing comprehensive reporting, ERP allows for better oversight of regulated activities and ensures all necessary paperwork is complete and businesses operate within the law.


Ultimately, cannabis businesses become more efficient by automating order tracking and inventory management tasks. They save time and money while allocating resources to growing the business. A cannabis business runs more smoothly and employees are more productive.


Not sure what software is right for you?

Check out our compliance solution to learn which is the right fit for your business.

More To Explore

A Partner You can Trust

e2b teknologies is a passionate and experienced team of industry leaders and business advisers providing expert insight, informing companies of advancements within the industry and how they can benefit from them.

A cannabis leaf