Using Wholesale Distribution for Cost-Effective Inventory Procurement

2017-11-06T00:55:32+00:00September 29th, 2017|

Why not wholesale your own cannabis product or have your team make calls to procure inventory? Seems simple, so why bother working with a broker who specializes in wholesale distribution?

The cannabis industry has erupted since 2014; many companies are forced into a period of up-staffing in order to meet increased demand. Up-staffing, regardless of size or structure, is always one of the more daunting tasks a company can face. It comes to a point where management has to decide whether to restructure or add resources. Additionally, a company must weigh the advantages of dedicating 3rd party assets to streamline efforts and maximize margins.

Enter Wholesale Distribution. A wide range of cannabis companies are turning to outside resources when niche specialties are needed, in order to accomplish tasks and reach goals. The demands of today’s cannabis industry has boosted the growth of these business solutions:

​MIPs are buying oil rather than extracting in house, dispensaries are outsourcing compliance needs, and more MMC’s are turning to wholesale specialists for inventory procurement in a fast, smooth, and cost-effective way.

It’s valuable to move away from hiring full-time employees who would be responsible for placing orders, and handling a significant network of distributors. Instead of bringing on the sales manager and a team of outside reps, simply pick up your phone and call, text, or email an industry specialist (hint, LowSpark!). Utilize the strength of another business model to support your own. Time is money and margins are everything in any business, but especially so in this industry. In order to keep up with your neighboring competition, you’ll need to trim up your PnL and get lean.

A strong wholesale distributor will have access to not only a high quantity of product that will address your business needs, but will have very competitive pricing as well. If you’re lucky (and we know you are!), that wholesale distributor will also help book courier services for your delivery. Being that a third-party service is always striving to WOW you with results, the hardships of handling employees and extra processes is entirely removed. Price savings with fewer headaches are just a phone call away. Utilize the superior ability of a team dedicated to just one goal: inventory management.

Interested in learning more? Contact your LowSpark representative today!