Nabis is transforming cannabis logistics, akin to the operational prowess of Amazon, catering to over 400 brands and ensuring thousands of daily deliveries in California and Nevada.
With five expansive warehouses and a robust fleet of over 100 trucks, Nabis executes flawless pick-and-pack operations, liberating cannabis brands from distribution complexities.
“Our mission is to streamline logistics, empowering our clients to trim overhead costs, hasten delivery speeds, and navigate the regulatory labyrinth,” shared Sean Arroyo, President of Nabis, in an exclusive dialogue with Benzinga Cannabis.
The Amazon Resemblance in Cannabis Realm
Nabis, often dubbed the Amazon of cannabis logistics, mirrors Amazon’s logistics-first approach, seamlessly managing pick-and-pack operations and same-day shipping through its extensive network.
Operating from five colossal warehouses akin to Amazon’s fulfillment centers, Nabis orchestrates the flow of cannabis products with surgical precision.
“We’re akin to an Amazon fulfillment center with rows of products being processed daily,” elaborates Arroyo. The scale is phenomenal, with a fleet of over 100 trucks ensuring rapid deliveries to dispensaries.
Cannabis brands leveraging Nabis’ platform have real-time sales tracking, inventory management, and the flexibility to adjust shipments on-the-go—providing them unprecedented operational control.
Navigating Thin Margins
While logistics represent the visible facet, cost management is equally imperative. Arroyo underscores, “Logistics, warehousing, fuel, and personnel constitute major cost centers, but we strive to offer competitive rates without compromising service quality.”
Nabis’ substantial technology investments, according to Arroyo, are crucial for sustained growth. Emphasizing thin margins, he mentions, “Similar to Amazon, we operate on tight margins to ensure optimal value for our partners. Our aim is not exorbitant profits but rather enabling brands to flourish.”
Complexities of Cold Storage and Compliance
Besides mastering logistics, Nabis tackles unique challenges specific to cannabis products, such as the need for temperature-controlled environments, especially for delicate items like edibles and extracts. “Much of the products require meticulous temperature control,” notes Arroyo, underscoring the specialized infrastructure within Nabis’ warehouses for product freshness and safety during transit.
Another critical facet is adhering to the intricate web of regulations that differ across states.
Arroyo states, “Cannabis logistics are immensely fragmented due to varying state laws.” Nabis ensures full compliance with local regulations, overseeing security measures, background screenings, and licensing requisites.
Data and AI: Shaping Future Distribution in Cannabis Industry
Nabis holds a treasure trove of data poised to revolutionize the industry. Arroyo affirms, “Data forms the crux of our operations. We are currently delving into AI to offer real-time analytics to our brands and retailers.”
Nabis’ overarching goal is to democratize data access for brands to monitor their sales and forecast future demand. “We believe in sharing our data. As our partners thrive, so do we. It’s a mutually beneficial arrangement,” Arroyo asserts.
Market Expansion and Strategy
California remains a fiercely competitive market, with Nabis wielding over 20% market share. “California poses challenges, but by offering top-notch services, we thrive,” notes Arroyo.
Future plans for Nabis involve focusing on East Coast markets like New York and potentially Florida, contingent on regulatory developments.
Nabis undertakes market selections meticulously. “We dissect 50 different factors when assessing a new market, encompassing regulations, economic might, and supplier ecosystem health. While New York holds promise, our growth strategies always pivot on the evolving regulatory framework,” he details.
