What is Direct Delivery?
Direct delivery programs let licensed producers sell their products directly to retailers, which can eliminate warehousing. In British Columbia, the standard practice is for LPs to send cannabis to the BC Liquor Distribution Branch’s (LDB) warehouse. Dispensaries must then choose the products they wish to buy from the LDB product list.
For retailers, the disadvantages include limiting choices to what’s available in the warehouse and typically requiring a minimum order amount. This process also does not allow retailers to select products based on freshness.
For LPs, there is no assurance that the cannabis sent to the warehouse will be ordered within its shelf life. Yet each time a product is shipped, the production facility must use a pre-paid excise stamp. As a result, LPs spend the price of the excise stamp without a guarantee of sale. The possibility exists for the cost of producing and shipping the product to be thrown away, plus there’s the extra work involved in reclaiming the excise tax.
Direct delivery lets LPs register and list products for sale through a provincial direct-to-retailer program. Dispensaries can choose products from an individual LP and arrange for delivery directly from production facility to storefront. The shipment still requires an excise stamp and provincial fees, but the sale to the retailer has already been made, which covers those costs.
The benefits of direct delivery include:
- Giving retailers greater choice when ordering plus no minimum sales and potentially shorter delivery times
- Supplying dispensaries and consumers with fresher product
- Letting LPs cultivate-to-order and preventing products from expiring in warehouses
- Removing speculative costs of excise stamps for LPs and ensuring up-front revenue to LPs
- Helping small-scale producers be more competitive in the marketplace by creating opportunities for brand marketing and promoting better customer service to retailers
How AirMed Supports Direct Delivery
AirMed Direct Delivery offers a streamlined service that enables licensed retail stores to bypass provincial warehouses and order products directly from licensed producers who use AirMed in provinces where this is permitted, currently British Columbia and Saskatchewan.
Our built-in workflows that support direct-delivery simplify your processes making it easier for you to work with your retail partners.
WordPress Plugin for Retailer Registration
A proprietary WordPress plugin and API provide fast and easy integration of your AirMed database with an online store on your website. This lets you offer your products directly to licensed retail outlets complete with a catalog and shopping cart. Retailers can register and get approval from licensed producers through the WordPress plugin. Approved retailers gain access to a product catalogue and order cases of finished packages.
Pricing and Orders
AirMed supports different pricing structures for various provinces for both individual packages and bulk cases. AirMed also allows pre-ordering of out-of-stock products, enabling producers to manufacture based on incoming orders.
Order Fulfillment
Once an order is placed, it is automatically processed in AirMed. Producers can fulfill orders, manage payments, and ship products directly to retail stores.
Provincial Support
Direct delivery is designed to comply with current provincial regulations and can adapt to include new provinces as regulations change. You can even set up direct-delivery product availability for provinces that may elect to allow direct delivery in the future.
Our solution is ideal for those looking to streamline their supply chain and enhance their ordering process in the cannabis retail industry.
Efficiency: Retail stores can directly access products from producers who use AirMed, reducing the dependency on provincial warehouses and potentially shortening delivery times.
Flexibility: Producers can manage their inventory and production schedules more effectively through pre-orders, and AirMed manages creating product cases in varying sizes with associated case pricing for each product type and province.
Scalability: Our system can expand to include additional provinces as they permit direct delivery.
To see all the ways AirMed supports direct delivery, book a free demo by using the Request Demo button at the top of the page.
For more information on direct delivery in British Columbia, visit: https://www.bcldbcannabisupdates.com/LDBDirectDeliveryProgram
For more information on cannabis laws in Saskatchewan, visit: https://www.slga.com/cannabis
To read an article about direct delivery on the Stratcann website visit: https://stratcann.com/insight/bcs-
annabis-direct-delivery-program-is-growing-but-fees-still-too-high/c