Cannabis logistics companies face significant risks regarding theft and diversion throughout every stage of the supply chain. From cultivation and processing to distribution and retail, high-value products combined with cash-heavy operations make for attractive targets. To manage these risks effectively, firms must employ a layered risk management approach grounded in trusted data and industry best practices.

Understanding the Risk Landscape

Robust evidence illustrates that the cannabis sector experiences theft at rates well above mainstream retail. One study revealed that cannabis retailers lose an estimated 2–5 % of inventory annually, with up to 90 % of that attributed to internal theft. Additionally, organized crime increasingly targets cannabis transport: in Colorado, law enforcement once intercepted a ring attempting to divert over $1 million in product from a distribution facility. Dispensaries also experience “crash and grab” burglaries—smash‑and‑grab attacks using stolen vehicles—which are prevalent in states like California, Colorado, and Nevada.

Stage-Specific Threats

• Cultivation and Processing: Facilities often suffer from small-scale plant theft or full-scale break-ins. Security deficiencies like inadequate perimeter hardening and poor surveillance are common vulnerabilities.
• Distribution and Transport: Smaller operators may use personal vehicles, leaving drivers exposed to opportunistic attacks. Drop‑off zones and unguarded parking lots are especially vulnerable.
• Retail and Cash Management: Retail dispensaries are prime targets due to large amounts of onsite product and cash, and often rely on simplistic safes or display cases.

Effective Risk Management Strategies

Industry guidelines advocate a multi-layered security model combining technology, physical controls, personnel training, and insurance.

1. Physical Security Measures: Heavy‑duty locks, safes bolted to floors, man‑traps, wire cages, and reinforced walls form the foundation. Vehicle immobilization devices—such as wheel boots, kingpin and air-cuff locks—can prevent theft during transit.
2. Surveillance and Access Controls: High-definition multi-sensor cameras coupled with AI and computer vision can monitor internal and external threats in real time. Timestamped access logs and cloud-based storage of entry data support forensic investigation.
3. Inventory Management & Seed‑to‑Sale Tracking: Automated seed‑to‑sale systems and RFID tag integration provide visibility at the unit level, making discrepancies easier to detect.
4. Employee Screening and Training: Strong staffing protocols—including psychological assessment, thorough vetting, and fostering transparent culture—can reduce internal theft, historically responsible for 80–90 % of losses. Ongoing training ensures personnel stay current with compliance requirements.
5. Transportation Security Protocols: GPS tracking for every shipment, tamper‑evident seals, secure locking systems, and escorted routes enhance cargo protection.
6. Insurance and Compliance: Specialized insurance policies covering cargo theft, liability, and regulatory penalties help companies recover losses. Staying ahead of regulations—manifesting, licensing, packaging, and record‑keeping—further reduces exposure to diversion and theft.

In regions like Missouri, jurisdictions require vault storage and silent alarms during non‑operational hours. In one case, fortifying doors and meeting these regulatory standards successfully thwarted a crash-and-grab, yielding no losses.

Benefits of a Comprehensive Approach

A multi-pronged strategy not only minimizes shrinkage and deters criminal activity but also bolsters regulatory standing, reduces insurance costs, and instills confidence among consumers and investors. Integration of technology, people, and process remains essential to ensure secure, compliant, and resilient cannabis logistics operations.