Introduction to the Cannabis Supply Chain

The legacy of prohibition has influenced the cannabis supply chain and led to the implementation of some of the strictest regulations of any industry in the world. Because cannabis is still prohibited in many states and countries, including in the U.S. at the federal level, supply chains are currently bound by geographic borders. With very few exceptions, cannabis material, and products grown within a state or country where cannabis is federally legal must remain within the boundaries of that state or national jurisdiction.

Within these physical boundaries, regulators exercise a great deal of control over the roles of the entities that make up the supply chain. The role of an individual company is limited to the specific activities for which they hold a cannabis business license.

In this self-paced virtual class, we define the concept of a supply chain and identify how regulations shape the cannabis supply chain. Then, we take a closer look at the different license types that make up the cannabis supply chain and discuss how the various license types are interrelated in the cannabis industry. We then more closely examine the practice of seed-to-sale tracking, a regulatory requirement that is one of the defining features of the cannabis supply chain and which has a massive impact on the day-to-day operation of a licensed cannabis business.

We also examine other regulations that create additional challenges for cannabis business operators. Financial regulations which limit access to banking services and capital; advertising and marketing rules which limit the channels through which companies can reach their customers; and ever-changing product safety requirements are just a few of the laws and rules which have an indirect impact on the shape of the cannabis supply chain.