Growing, bagging and selling cannabis alone won't sustain growth in today's market. High-quality products and loyal customers are no longer enough; the industry needs smarter, leaner supply chains to stay competitive. At the latest Benzinga Cannabis Capital Conference, industry leaders delivered a clear message: emerging tech like AI, automation and blockchain is transforming cannabis operations.
Moderated by Cannabiz Supply's Barbara Fox, the panel emphasized how these tools are redefining efficiency, data collection and automation to scale profitability.
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Graham Farrar, co-founder and president of Glass House Brands GLASF explained how AI and RFID tracking have revolutionized Glass House's operational flow. RFID, or Radio Frequency Identification, uses small tags with embedded chips to track objects in real time. “For us, it’s all about saving seconds without sacrificing quality,” he said, emphasizing the importance of precise time tracking for tasks like hand-trimming.
By implementing RFID tags, Farrar noted, “we can tell how much each employee is trimming per hour, which helps us reward high performers and spot inefficiencies.” Farrar highlighted a $250,000 photo-optical sorting machine powered by AI that reduced labor costs by eliminating six full-time positions.
RFID And NFC Use in Consumer Tracking
The panelist also discussed the potential of RFID and NFC labels to track consumer movement from one location to another, offering brands insights into consumer behavior. As Farrar explained, implementing RFID in retail products enables companies to see where products go after they're purchased, such as if cannabis bought in Chicago is often found later in Wisconsin. These insights could guide distribution strategies, allowing brands to place inventory closer to consumer hotspots and thus enhance their market reach efficiently.
Read Also: Think You Can Do It All? 20,000 Reasons Why Automation Outperforms A Broad Approach In Cannabis
Leveraging Data For Smarter Decisions
Data analysis has become the essential compass in navigating the complex landscape of cannabis sales. Pete Sahani of The Blinc Group emphasized that while his company is beginning to automate data analysis, understanding the manual process remains essential. “We're trying to figure it out before just throwing technology at it,” he shared. With tools like “Blinc on demand,” Sahani explained, Blinc Group is beginning to automate inventory insights, helping clients make informed purchasing decisions based on real-time sales trends.
Bypassing Supply Chain Bottlenecks With Technology
Michael Piermont, CCO at Sweed and Leaf Trade, shared how his team is using AI to tackle supply chain bottlenecks, especially in bulk purchasing.
“We're all buying and selling from each other in a fairly closed-loop system,” Piermont said, adding that AI-driven insights could help predict product demand and optimize inventory. “If you knew 50% of your product was already sold before it was even grown, you could be more selective about what to produce.”
Piermont also discussed how integrating AI across supply chain platforms could eliminate human bias in purchasing decisions, allowing businesses to base decisions on real-time consumer data. “It's about making the decision easier,” he emphasized, a sentiment echoed by other panelists who agreed that technology could drive objectivity in decision-making.
Cannabis Retail: More Than Selling Bud
By integrating demographic data, retailers can tailor inventory selections to meet specific consumer needs, a shift that could help cannabis companies overcome some of the industry’s unique challenges, such as high tax rates and strict regulations.
Vibhav Gupta, CEO of CannMenus, highlighted how AI had enabled cannabis companies to analyze vast amounts of retail data, yielding consumer behavior insights previously unheard of. Gupta explained, “It’s never been a better time to be in the data space.”
Meanwhile, Farrar expressed optimism about cannabis becoming a model for other industries regarding data-driven strategy. "Cannabis could become a beacon that others start to follow," he noted. He added that the industry's challenges—ranging from regulatory barriers to market instability—push it to adopt innovative solutions faster than most.
Piermont agreed, adding that while some sectors have had the luxury of time to adapt, "in cannabis, technology adoption is critical for survival."
Read Next: EXCLUSIVE: 80% Growth Despite The Chaos: How Dutchie, C3 Defy 2024’s Cannabis Slump
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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