How To Start A Cannabis Delivery Service

Guide: How to Start a Cannabis Delivery Service

Delivery Service

On-board Inventory

Hub-based

Also known as the “ice cream truck model”, each

Also known as the “pizza delivery model”, a central

driver carries a certain amount of inventory in their

fulfillment location, or hub, stores the inventory.

vehicle during their shift. Drivers fulfill multiple

Drivers collect orders from the fulfillment center

orders without having to return to the hub or

and then complete deliveries. Once a delivery is

dispensary in between deliveries. When inventory is

complete, the driver returns to the hub and the

low, drivers return to the dispensary for additional

process is repeated. Multiple hubs are spread out

products.

across a city to maximize efficiency and profit.

Pros:

Pros:

Multiple deliveries without having to return to shop

Able to set up multiple hubs

Online orders go directly to drivers

Dispatcher responsible for assigning online orders

Cons:

Cons:

Legal limits on amount of product to carry at once

Drivers must return after every delivery

Customers have limited menu options for variety of

Customers have a wide variety of products on

products

menu

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Dynamic Delivery

Courier Routing

Driver Fulfillment

Inventory Limits

Our new Dynamic Delivery

Dynamic delivery also places

The amount of inventory a

functionality will now give

the fulfillment process in the

courier carries is always tracked

dispatchers the ability to assign

hands of the couriers. Once the

and limited to remain compliant

new orders to drivers based on

order is assigned to them, they

with delivery regulations. In

their real-time location rather

can scan the product barcodes

California, couriers are allowed

than the distance from the hub

using their mobile phones to

to carry up to $3,000 worth of

to the dropoff location. This will

build the order. Once built, they

product at any time. Dynamic

drastically reduce delivery times

can proceed to drop off the

delivery will work within these

as a new order can be assigned

order and check out the

limits so that couriers can carry

to and fulfilled by the driver if

customer.

popular inventory items as well

they are in the vicinity of the

as a variety of cannabis product

customer.

categories.

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Research State and Local Regulations

Local Laws and Regulations

Key Compliance Laws

Set Delivery Radius

The process to apply for a

Cannabis compliance laws have

Another requirement for every

cannabis delivery business

specific applications for

hub-based marijuana delivery

license varies greatly by state

cannabis delivery. State law

service is the ability to define

and municipality. In Colorado,

stipulates the amount of

their territory. Smart software

only licensed cannabis

product that can be carried in

will allow dispatchers to set a

businesses (such as dispensary

one delivery vehicle at a time

specific perimeter for their

storefronts) are allowed to

($3,000 in CA). A bluetooth

service area so they won’t

apply for a delivery license,

printer is a great way for drivers

interfere with orders from a

while any person in California

to print receipts. A

different hub.

can apply for a cannabis

sophisticated software

delivery license. It is best to

application such as Potify can

obtain guidance from a trusted

handle driver’s turn-by-turn

legal professional who

manifest and Metrc reporting.

specializes in marijuana business law when applying for a cannabis delivery license.

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Third Party vs Integrated Delivery

Third Party Management

Integrated Delivery

Similar to restaurants utilizing Postmates or

With a powerful inventory point-of-sale system and

GrubHub, dispensaries have their options for third

software interface, managing delivery orders in-

party delivery management. The dispensary

house has never been easier. Mobile apps allow

outsources the hiring of drivers, maintenance of the

dispatchers to see a courier’s location, current

fleet, and overall management of the delivery

stock, and delivery time estimates from one central

process. The major downside is the amount of

location. You are able to control and customize

money that goes to the third party and not to your

every aspect of your delivery service to fit your

business.

specific needs.

Pros:

Pros:

Multiple deliveries without having to return to shop

Able to set up multiple hubs

Online orders go directly to drivers

Dispatcher responsible for assigning online orders

Cons:

Cons:

Legal limits on amount of product to carry at once

Drivers must return after every delivery

Customers have limited menu options for variety of

Customers have a wide variety of products on

products

menu

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Online Store

Potify

White Labeling

Reporting

Potify is IndicaOnline’s online e-

Dispensaries have the option to

Cannabis deliveries are under

commerce platform that syncs

white label Potify. This allows

the same scrutiny, if not more,

directly with your inventory.

them to customize their URL

than cannabis sold in-store.

This provides your customers

and display a branded shopping

IndicaOnline allows easy digital

with an updated look at the

experience for the customer.

record keeping and automated

current availability of products

Establishing a brand is one of

reports for state reporting

on your online menu. Having

the best ways to retain

requirements. In addition, Potify

real-time menu updates gives

customers. Dispensaries will be

generates sales reports and

you and your clients assurance

able to hyperlink from their

data to monitor logistic

that what they order will be in-

website using a “Shop Now”

operations and to keep the

stock. Customers will have a

button so customers will

guessing game out of inventory

very familiar shopping

automatically be redirected to

purchasing. Analyzing sales

experience-- exactly like online

order online.

data maximizes operational

shopping.

efficiency when it comes to staffing and driver performance.

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Delivery Software Features

Smart Order Assignment

Mobile Courier App

Navigation Integrations

Smart Order Assignment is a

Couriers simply accept an

The courier can choose from

revolutionary delivery feature

incoming order with one click to

Apple Maps, Google Maps or

that automatically suggests the

view all the details and map

Waze to select the quickest

best driver for each order based

their route to the delivery

delivery route available.

on a predefined delivery time

destination. Enabling the app

Avoiding traffic and

limit. It allows dispatchers to

with location services will

construction delays in the city

quickly assign multiple delivery

provide the dispatcher with the

will save on fuel cost and allow

orders with the knowledge that

real time GPS location of every

for more deliveries in a day. For

they will reach their destination

courier. This is extremely helpful

couriers who are new to the

within the specified time frame.

in providing the fastest delivery

delivery area, this multi-stop

speed to awaiting customers.

navigation will be a necessity

Drivers can also see the full

when fulfilling orders to several

customer profile and any

locations.

specific delivery directions made by the customer.

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Digital Verification The delivery app transforms a courier’s mobile device into a mobile point-of-sale register. After the order is paid for, customers will receive an email receipt when the transaction is complete. Couriers can upload doctor’s recommendations from medical patients and verify them instantaneously. Both medical and recreational customers will be able to e-sign collective agreements and choose their preferred method of payment.

Customer ETA Alerts An informed customer is a happy customer! Customers and patients are automatically sent alerts and updates throughout the delivery process. They are also able to keep track of their order status directly from their account. This keeps your delivery team’s time and focus on orders and not customer service phone calls.

Dispatcher Push Notifications Dispatch is notified every step of the way. When a new order is placed, dispatch is sent a notification. Next, dispatch is notified when a courier collects an order. Finally, the dispatcher is notified once the delivery is completed.

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Delivery Order Insights By analyzing sales and delivery data, you are able to optimize send special offers and discounts based on customer buying preferences, make more informed purchasing decisions, and improve geotargeted marketing. IndicaOnline includes a robust dashboard of sales insights that are a major boost to your delivery service.

Bluetooth Mobile Printers Delivery regulations in some states may require a physical receipt to be issued to the customer. Using a software that integrates with portable bluetooth printers allows couriers to print a receipt from their mobile device and issue a receipt once the transaction has been completed.

Turn By Turn Navigation Log States such as California require drivers to be equipped with a GPS monitoring device at all times. A detailed, turn-by-turn log must be collected for state reporting. To remain compliant with state regulations, having a software such as IndicaOnline that can record navigation logs is essential.

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Store Layout and Operations

Dispatcher

Infrastructure

Driver Vehicles

The dispatcher is the person

Dedicate an area of the store to

While most cannabis delivery

who manages the delivery

in-store pickup orders and

services hire drivers that use

operations in the dispensary or

delivery orders. This will give

their personal vehicles, there are

hub. The dispatcher typically

the dispatcher room to work

other options. One option is to

pulls inventory from the shelves,

and will avoid order mix-ups.

go a third party route to

sorts orders, and manages the

Infrastructure also includes any

manage and maintain the

couriers. Dispatchers and

hardware such as iPads and

vehicle fleet. Another option is

couriers are able to

receipt printers: both in-store

to buy and maintain a vehicle

communicate directly within the

and on the road.

fleet of your own. Make sure

IndicaOnline application - a

each vehicle and driver has all

massive boost for efficiency.

required licenses (including the dispensary business license) to remain compliant while on deliveries.

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Communicate with Customers

In-store advertising

Digital Outreach

Delivery Incentives

Use all available means to

Send patients marketing and

Offer an incentive for using the

announce the new delivery

promo material via SMS or email

delivery service for the first

service in-store. Put up branded

campaigns. With IndicaOnline,

time. You could double the

signs near check-in and check-

you are able to easily generate

rewards points on the delivery

out and throughout the store to

campaigns to announce sales,

or offer a gift. Finding a brand

catch customers’ attention.

specials, and news. Another

to co-sponsor the launch of

Consider printing out small

feature is to group patients into

your delivery service is a great

mailers or cards for the

categories for easy targeting.

way to kickstart delivery orders.

budtenders to place inside exit

Stay relevant and solidify

bags.

branding with a newsletter.

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COVID-19

E-signature

Driver Supplies

Coin Shortage

To keep staff and customers

Make sure to keep each driver

Due to the ongoing coin

safe, e-signatures can be used

supplied with supplies such as

shortage, encourage customers

during deliveries. The delivery

masks, gloves, and hand

to use exact change. Typically,

process should be as close to

sanitizer. Drivers should sanitize

the driver is able to collect the

“no-contact” as allowed by law.

high-touch areas inside their car

extra change in the form of a

IndicaOnline allows for e-

as often as possible. When

tip. Another option is to round

signature verification.

interacting with customers,

up the order using store credit.

drivers should always wear a mask and only deliver to customers who are wearing a mask.

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About Us IndicaOnline is an innovative dispensary management suite used by thousands of cannabis retailers and delivery services in the U.S. and Canada, ranging from multi-location enterprises to small businesses. We are committed to spurring positive industry change through technological advances for the evolving cannabis industry. Our main objectives are to build a positive culture, deliver excellent service, expect and embrace change, and grow with our customers. We came together because we believed what we could do with IndicaOnline would represent a shift in how people perceive the cannabis industry. Since 2011, IndicaOnline dispensary software suite has been purpose-built with any size business in mind. From sales, to compliance, to expenses and analytics, we strive to streamline and simplify dispensary operations. IndicaOnline is a pioneer in ushering the cannabis industry into a digital storefront model that has empowered dispensaries in the wake of the Coronavirus pandemic. We offer a robust proprietary e-commerce platform and advanced features to track, and optimize pickup and delivery. Potify is IndicaOnline’s digital storefront that is fully integrated with Metrc for automated reporting and syncs to your POS inventory. We take pride in the stability, reliability, and security of our software so you can be confident your POS stays up and running during the 4/20 rush. We work closely with our clientele to resolve any issues and provide a positive experience for dispensary owners, employees and customers.

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