Varying Risks for Third-Party and In-House Cannabis Transporters

With the rapid expansion of the cannabis industry, frequent transport of cannabis is becoming a requirement for many cannabis businesses. To meet this need, cannabis business owners must decide whether or not to vertically integrate and transport cannabis in-house or hire a third-party company. This can be a confusing and daunting decision because while self-transport ensures control over all transport operations, utilizing a third-party service can allow cannabis business employees to focus on other vital areas of the business. With pros and cons to both options, cannabis business owners must decide which option works best for their business model.

Third-Party Cannabis Transport

It is imperative that a cannabis business has a plan for the transport of cannabis, and often the easiest way is to simply hire a third-party company. Third-party transporters must typically obtain their own cannabis business license from the state or local regulatory authority and must adhere to the same regulations as self-transporters.

The benefits of hiring a third-party transport company can range from convenience to fiscal reasons. For example, outfitting a single van to transport cannabis can cost upwards of $30,000 and businesses must ensure regular maintenance and upkeep on these vehicles. Third-party cannabis transporters may also be more likely to exceed regulation required security standards for their vehicles since the vehicles are the core of the business. The training for third-party cannabis transporters may also be more specialized since drivers do not have additional job responsibilities, focusing only on the safety, compliance, and completion of each delivery.

Despite benefits, hiring a third-party transport can come with its own set of risks. It is harder for a business owner to ensure that all transport operations are in compliance when another business is handling the transport. Additionally, if the third-party transporter is not maintaining their vehicles safety and security standards, cannabis and cannabis products could be susceptible to theft or diversion.

In-House Cannabis Transport

Some cannabis businesses may prefer to transport cannabis in-house rather than hire a third-party transporter to maintain greater control over operations. Cannabis business owners should ensure that vehicles are equipped with security features that are similar to the security implemented on the premises of the cannabis business to prevent loss of cannabis. This may include video surveillance cameras on the interior and exterior of the vehicle, as well as body-cams, safes and lockboxes, vehicle alarms, GPS, and secure means of communication. Additionally, proven methods to help prevent robbery during transport include using unmarked vehicles, changing routes frequently, and having drivers work in teams of two.

The benefit of self-transport is increased control over operations to ensure that company policies are followed and that regulations are adhered to. Cannabis business owners may prefer to ensure that everything is done right themselves without having to rely upon a third-party company. This option likely works best with “chain” businesses and MSOs as cannabis businesses with multiple locations are better able to share the financial and logistical responsibilities of self-transporting cannabis. Though there are benefits, cannabis businesses considering self-transport should consider the vehicle costs and maintenance, as well as staff hiring, training, and pay, which could be a major burden on a smaller business.

No matter who is conducting the transport, safety and security should always be the priority. Secure transport should be addressed in the cannabis business application, a topic in the business’ standard operating procedures, and a concentration of the training program. Whether a third-party transporter or a cannabis business conducting self-transport, working with security experts can help to ensure compliant and successful cannabis transport.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group has over 30 years of security experience and expertise. Sapphire’s team has written hundreds of cannabis transport cannabis business applications, SOPs, and training for third-party and in-house cannabis transporters. Follow us on social media to stay up to date with current cannabis security news and trends!