Anatomy of the Cannabis Supply Chain


The cannabis industry is growing at a rapid pace. The cannabis supply chain must adhere to strict federal and state guidelines. For example, marijuana sold in your state must have also been grown in your state. No matter where you find yourself in the supply chain, it’s important that cannabis businesses be insured to protect the owner from liability and loss. If you aren’t clear on your state’s laws, hire an attorney to guide you through your business setup phase.

If you’ve been thinking about getting in on this growing industry, but aren’t sure where you might fit, here’s a look at the cannabis supply chain, from growing to selling.

The Grower

The grower starts the plant from seed to harvest. The grower may also dry and prepare the plant for the consumer.


Before the product can be sold, it must be tested at a lab to ensure it adheres to laws regarding toxicity and purity.


The dried cannabis is packaged for the retail market. This includes extracting THC for edibles and packaging into individual joints.


The role of the distributor varies from state to state. Some will store and move product, while others will simply move it.


Dispensaries are licensed retailers who are the only entities who can legally sell cannabis in a state.