In legal markets, cannabis doesn’t simply “show up” at a dispensary. It moves through a regulated supply chain designed to protect consumers, reduce diversion to the illicit market, and ensure products are accurately labeled. Many states require some form of “seed-to-sale” tracking—an electronic system that records key events from cultivation through final sale.

1. Cultivation and harvest

The process starts with licensed cultivators propagating plants, managing nutrients and pest controls, and documenting core production data required by their state’s rules. Cultivation facilities operate under strict licensing conditions that dictate where and how cannabis can be grown. Once mature, plants are harvested, dried, and cured to stabilize moisture levels and preserve cannabinoids and terpenes. At this stage, harvest weights and batch identifiers are recorded so the product can be traced as it changes form, whether it remains flower or becomes biomass for extraction.

2. Processing and manufacturing

After curing, cannabis may be packaged as raw flower or sent to a licensed manufacturer. Manufacturing transforms cannabis into concentrates, vape products, edibles, beverages, tinctures, and topicals. This stage introduces additional compliance requirements, including standardized batch creation, ingredient tracking, and detailed production records. Manufacturers are also responsible for preparing compliant labels that accurately describe the product, its potency, and required consumer warnings.

3. Sampling and laboratory testing

Before reaching retail shelves, cannabis products must undergo mandatory laboratory testing in most states. Licensed labs analyze samples for cannabinoid potency and screen for contaminants such as pesticides, heavy metals, residual solvents, and microbial impurities. Proper sampling and chain-of-custody procedures ensure the tested product accurately represents what will be sold to consumers. Only products that meet state safety thresholds are cleared for sale.

4. Packaging, labeling, and readiness for retail

Once testing is complete, products are packaged for consumer purchase. Packaging requirements typically include child-resistant features, tamper-evident seals, and clearly visible warning statements. Labels must list key information such as product type, net weight, cannabinoid content, batch numbers, and testing status. These requirements are designed to promote transparency and consumer safety while limiting appeal to minors.

5. Distribution and transport to stores

Licensed distributors—or the equivalent function defined by each state—manage the compliant transfer of cannabis between licensed businesses. Transportation must follow strict rules regarding security, documentation, and routing. Each transfer is logged within the state’s tracking system, allowing regulators to monitor product movement and prevent unauthorized diversion.

6. Retail receiving, inventory, and sale

At the dispensary level, staff receive shipments, verify documentation, and reconcile inventory records. Products are added to point-of-sale systems that connect inventory, lab results, and pricing. When a purchase occurs, the system records the transaction, closing the loop on the seed-to-sale process.

For consumers, the result is a regulated pipeline designed to ensure cannabis products are tested, traceable, and accurately labeled before they ever reach the retail shelf.

Learn More: The Hidden Impact of Cannabis Distribution Bottlenecks