Vendor Onboarding: Vetting Suppliers

Bringing on new products can be fun and exciting, but how do you know what products are good, and what suppliers are easy to do business with?

Picture this: you’re running a dispensary, eager to stock your shelves with the latest, greatest products. But instead of carefully vetting your vendors, you rush in, blinded by the thrill of new merchandise. You skip the details, overlook the fine print, and before you know it, you’re knee-deep in a mess of bad products, missed deliveries, and compliance nightmares.

The situation? Vendors with expired licenses, shady billing practices, and products that don’t live up to the hype. You didn’t ask the right questions, and now it’s costing you—lost customers, wasted money, and a reputation that’s circling the drain.

The consequences of these bad decisions? A store full of mediocre products and a back office that’s constantly putting out fires. You’re stuck dealing with vendors who can’t deliver on time, or worse, can’t deliver at all. Your staff is frustrated, your customers are disappointed, and the dream of running a top-notch dispensary feels like it’s slipping away.

But there’s a way out of the chaos. The solution? A rigorous, no-nonsense approach to vendor onboarding. Start asking the tough questions upfront: Do they have a valid license? Can they meet your payment terms? Will they deliver directly to your store? Dig into their processes, their compliance policies, and their product quality. Make them prove they’re worth your time and money.

In short, stop taking shortcuts. Vet your vendors like your business depends on it—because it does. Get all the details, demand transparency, and only bring on those who can meet your high standards. This is your chance to turn things around, to stock your shelves with products you’re proud of, and to build a reputation as a dispensary that doesn’t settle for anything less than the best.

List of questions to consider when onboard new vendors

Here’s a summary of the vendor onboarding questions, grouped by topic:

Business and Licensing Details:

• Legal Business Name and DBA (if applicable)

• CCD License Number and Expiration Date

• Billing Address and Business Address (if different)

• Distribution Center Address

Contact Information:

• Purchasing Contact Name, Email, and Phone

• Finance Contact Name, Email, and Phone

Payment and Delivery Terms:

• Payment Terms (including specific details)

• Ability to do Direct-to-Store Deliveries (DSD)

Product and Services:

• Product Categories Offered

• Ability to Provide Empty Display Units

• Willingness to Offer Product Samples for Employees

• Availability of Media Kits with Product Images and Descriptions

• Interest in Conducting Pop-up Events and Vendor-Funded Promotions

• Classification of Product Quality (Good, Better, Best)

• Lead Times for Product Delivery

Operational Processes:

• Inventory Control and Billing Systems Used (e.g., BioTrack, Dutchie, Leaflink, Quickbooks)

• Ability to Provide Custom Case Sizes

• Availability of a List of Strains/Flavors and Dominance (Indica/Sativa/Hybrid)

Cultivation and Extraction:

• Types of Pesticides Used

• Current Plant Count

• Extraction Processes Used

• Lab Used for Certificates of Analysis (COAs)

• Types of Lighting and Soil Used in Cultivation

Compliance and Packaging:

• Suppliers for Labels and Packaging

• Review and Submission of Packaging Compliance Checklist

• Child-Proof Packaging Certification

• Certificate of Insurance (COI)

Logistics and Distribution:

• Number of Stores Currently In

• Number of SKUs Carried

• Transportation Methods for Products

Tax and Certification:

• Requirement for Non-Taxable Transaction Certificate (NTTC) and CRS Number