What is OCS Flow-Through? Guide for Dispensaries

October 21, 2024

Introduction

The Ontario Cannabis Store (OCS) plays a central role in ensuring cannabis products are distributed across the province in accordance with regulatory standards. For dispensaries, understanding the available distribution models is crucial to staying competitive and compliant. One of the most valuable options offered by the OCS is the Flow-Through Program. This program allows dispensaries to expand their product range by accessing exclusive and niche items, providing a powerful tool for standing out in a crowded market.

In this comprehensive guide, we’ll explain what the OCS Flow-Through Program is, how it works, why it’s beneficial for cannabis retailers, and how dispensaries can fully optimize its potential to improve customer satisfaction and drive business growth.

What is the OCS Flow-Through Program?

The OCS Flow-Through Program is a distribution model that enables licensed cannabis retailers in Ontario to access a broader selection of products that are not typically stored in the OCS Distribution Centre. Instead, these products are managed by Licensed Producers (LPs) and only shipped to the OCS when retailers place an order.

After retailers submit an order, the LPs send the products to the OCS, where they are packaged with the retailer’s regular stock and delivered on their scheduled delivery day. The key advantage of Flow-Through is that it provides access to a wider variety of cannabis products, including limited-edition items, seasonal offerings, and niche products that aren’t available to the general public through OCS.ca. This model allows dispensaries to offer a more curated and exclusive product selection, enhancing their competitive edge.

Why Flow-Through is Important for Dispensaries

Flow-Through offers several important benefits for dispensaries that can help improve business performance, customer satisfaction, and market differentiation.

1. Expanded Product Selection

One of the most significant advantages of the Flow-Through Program is the expanded product selection it provides. The standard OCS catalog offers a wide range of cannabis products, but Flow-Through gives retailers access to products that go beyond what’s typically available. This includes rare strains, unique edibles, high-end accessories, and niche products from boutique cannabis producers.

Dispensaries that participate in Flow-Through can position themselves as destinations for exclusive products that are hard to find elsewhere. By offering these unique items, dispensaries can attract a broader customer base, appeal to cannabis connoisseurs, and build a reputation for carrying the latest and most exciting products.

2. Customization and Flexibility

Flow-Through enables dispensaries to be more agile in responding to customer preferences and trends. If customers express interest in a particular product or strain that isn’t part of the standard OCS catalog, dispensaries can use Flow-Through to order those items on demand. This flexibility helps retailers cater to niche markets and develop stronger relationships with customers by fulfilling their specific requests.

Moreover, Flow-Through allows dispensaries to experiment with new products without the risk of overstocking. Retailers can place smaller, targeted orders based on customer feedback or anticipated demand, reducing the likelihood of unsold inventory.

3. Inventory Management Benefits

Flow-Through simplifies inventory management by reducing the need for dispensaries to hold large amounts of stock. Since products are only ordered when needed, dispensaries can maintain a leaner inventory, minimizing storage costs and the risks associated with slow-moving products. This is especially beneficial for seasonal or niche items that might not sell as quickly as more mainstream cannabis products.

By leveraging Flow-Through, dispensaries can keep their product offerings fresh without the overhead of holding excess inventory. This not only improves cash flow but also enables dispensaries to cycle through products efficiently, ensuring that customers always have access to new and exciting options.

4. Differentiation from Competitors

In Ontario’s competitive cannabis market, differentiation is key to attracting and retaining customers. Many retailers focus on competing through price, but Flow-Through provides an opportunity to differentiate based on quality, exclusivity, and customer experience. By offering unique or limited-availability products, dispensaries can stand out from the crowd and create a shopping experience that draws in consumers looking for something special.

Instead of getting involved in a race to the bottom on pricing, Flow-Through allows dispensaries to offer premium products that justify higher prices. This helps elevate the overall shopping experience and encourages customer loyalty based on value rather than price alone.

How Does the Flow-Through Program Work?

The Flow-Through Program operates through a straightforward process that involves collaboration between retailers, the OCS, and Licensed Producers (LPs). Here’s how it works:

  1. Licensed Producers Manage Inventory
    LPs are responsible for managing the inventory of Flow-Through products. Each week, typically on Tuesdays, LPs upload their available inventory to the OCS B2B Portal, allowing retailers to view the expanded product catalog for that week.
  2. Retailers Place Orders
    Retailers can browse the available Flow-Through products and place their orders on their assigned order day. These items are tagged within the ordering system, making them easy to filter and select alongside regular stock items.
  3. Products Shipped to OCS
    After the order is placed, the OCS consolidates the request and coordinates with the LPs to have the products shipped to the OCS Distribution Centre. The products are then added to the retailer’s regular order and delivered on their scheduled delivery day.

Important Considerations for Retailers

While the Flow-Through Program offers significant benefits, there are a few important details that dispensaries should keep in mind:

  • Delivery Times: Flow-Through products take longer to arrive compared to regular OCS stock. Expect delivery within 17-19 days after placing an order. This timeline includes order consolidation, shipment from LPs to the OCS, and final delivery to the dispensary.
  • Separate Invoices: Flow-Through orders are invoiced separately from regular replenishment orders. Each order comes with its own Advanced Shipping Notice (ASN) and sales order number, so retailers should prepare for separate invoices and shipping costs.
  • Shipping Costs: Shipping fees for Flow-Through products are pro-rated based on the number of units ordered. There is a minimum shipping charge of $200 plus HST, so retailers should factor this into their ordering strategy.
  • Product Allocation: Some Flow-Through products, especially limited-edition or high-demand items, may be subject to allocation or lottery systems during their initial release. Retailers should plan accordingly and be aware that not all requested products may be available for purchase.

Maximizing the Benefits of Flow-Through

To get the most out of the Flow-Through Program, retailers should take a strategic approach to ordering and customer engagement. Here are a few ways dispensaries can optimize their use of Flow-Through:

  • Customer Demand: Pay close attention to customer preferences and feedback to identify products that are in high demand. By using Flow-Through to meet specific customer requests, dispensaries can build customer loyalty and ensure repeat business.
  • Promote Exclusivity: Highlight the exclusive nature of Flow-Through products in-store and online. Use marketing strategies to promote these items as special offerings that set your dispensary apart, encouraging customers to visit for unique experiences.
  • Strategic Ordering: Plan Flow-Through orders around seasonal trends, product releases, and events. By anticipating demand for certain products, you can avoid overstocking and ensure you’re always offering fresh and exciting inventory.

The Role of Poof.ca in Supporting Dispensaries

As competition in the cannabis industry intensifies, retailers need to leverage every tool at their disposal to stand out. Poof.ca offers a digital marketplace that can help dispensaries showcase their products, including Flow-Through items, to a broader audience. By listing your dispensary on Poof.ca, you can increase your visibility, reach cannabis consumers looking for unique and exclusive products, and drive more traffic both online and in-store.

Poof.ca’s advanced digital marketing solutions allow dispensaries to target specific customer segments, including those seeking hard-to-find items available through the Flow-Through Program. By partnering with Poof.ca, dispensaries can build their online presence, boost brand awareness, and maximize the impact of Flow-Through to attract new customers.

Conclusion

The OCS Flow-Through Program is an invaluable tool for dispensaries looking to diversify their product offerings, improve customer loyalty, and stand out in Ontario’s competitive cannabis market. By utilizing Flow-Through, retailers can access unique and exclusive products that enhance the customer experience and set their store apart.

With the support of Poof.ca, dispensaries can amplify their efforts by using targeted digital marketing and an expanded online marketplace to attract new customers and thrive in the rapidly evolving cannabis retail space.

Join Poof today for free!