The Ontario Cannabis Store has introduced a new ordering system for retailers that they call “Flow Through”. There has been confusion about this program at the retailer and LP level, so we’ve decided to help clear things up. This article will explain what the OCS Flow Through program is and how retailers can best utilize the system and schedule to their benefit.
The OCS Flow Through program changes the way that cannabis is bought and sold in the province. Flow Through listings are not stocked by the OCS, but instead “flow through” their warehouse on a made-to-order, demand basis. Flow Through orders are made through the OCS Wholesale retailer portal.
There are several benefits of Flow Through for retailers, Licensed Producers, brands and consumers.1. Greater Production Selection for Retailers and Consumers
The OCS will be accepting a wider range of SKUs under this new “Flow Through” program. That means a larger selection of more diverse products for retailers to sell to consumers. Under Flow Through, the OCS takes less risk as they only cut purchase orders for confirmed demand by retailers. This means they will be bringing in many new SKUs to the Ontario market.2. More Opportunities for Craft Brands to enter Ontario
The OCS will be accepting more products from a larger number of brands and producers. This allows Ghost Drops to bring more illicit and iconic brands to the legal market under our The League strategy.3. Retail Store Differentiation
This change allows retail stores to stock a wider variety of products that will not be available to consumers through the OCS.ca online portal. This allows stores to begin to differentiate from both the provincial wholesaler and other competing retailers.4. Guaranteed Inventory
With general listing products, every stocked item is on a “lottery system”. This means that if demand exceeds supply, some stores will receive a lower quantity (or none) of the product they ordered. With Flow Through, ordered inventory is guaranteed to arrive at the retail store as long as the Licensed Producer fulfills its shipping obligations. This allows stores to more accurately plan their inventory.5. Ghost Drops Newest Line-up
Ghost Drops’ newest line-up, including our C.R.E.A.M Cake and King Sherb strains, are available to Ontario retailers exclusively via Flow Through. We will be dropping a ton of new cultivars and product types on this portal in the coming months.
Retailers are able to order product on their regularly scheduled ordering dates. Generally, there is a 17-day time period between the order day and the date of delivery at the retail store. We suggest that retail stores place weekly Flow Through orders so that they begin to receive Flow Through orders on a weekly basis. Flow Through orders generally arrive with a retailer’s regularly scheduled general listing orders.
Flow Through payment terms are essentially identical to payment terms for general listing stocked product orders. Payment is due upon the generation of the ASN (Advanced Shipping Notice), which is typically sent to the retailer the day before products are delivered. As a retailer, your money is NOT tied up for longer under Flow Through. There should be no concerns as it pertains to inventory and cash management for this reason. Retailers simply pay the day before their order arrives and can cancel their delivery between the time the order is placed and the ASN is generated.
This new Flow Through program sets the stage for more direct relationships and communications between brands and retailers. The Canadian cannabis industry will continue to evolve as time goes on. Ghost Drops will continue to adapt to fulfill our mission of bringing the very best cannabis to consumers across the country.
Still have questions about Flow Through?
Email us at firstname.lastname@example.org with any questions or concerns!