The ROI of RFID: How Cannabis Businesses Can See a Positive Return on Investment
Tracking, tagging, transponders, and electromagnetic fields, oh my! Do you know how cannabis products are traced and tracked across the supply chain? In this episode of the Cannabis Community Insider, we deeply dive into the overlooked world of Radio Frequency Identification technology, otherwise known as RFID, to learn about how this technology is commonly used in dispensaries, cultivation, and processing centers around the world.
We put together a special panel of technology experts, including: – Eric Malmed of Zebra Technologies – Scott Denholm of Brytemap Inc. – Duane Roebuck of BlueStar Inc.
Table of Contents
Introduction to RFID 00:00
- Today’s channel discussion features three experts in RFID technology and its application in the cannabis industry.
- The first expert is Duane Roebuck, a recognized expert in technology within the cannabis and retail industry. He works with thousands of reseller businesses in North America to provide them with the latest hardware products and innovations.
- BlueStar partners with enterprise-level hardware and software solutions and seed-to-sale providers to maintain track and trace compliance.
- In his role, Duane strategically connects manufacturers such as Deeper Technology, Ewo Star Micronics, LG, Hickvision, and others to cannabis software providers to assist in the development and demo equipment and channel strategies.
Eric Malmez on RFID Technology 01:04
- Eric Malmez is a member of the Zebra Technologies product management team with subject matter expertise in RFID technology.
- He has been responsible for Zebra’s fixed RFID readers, sled, integrated RFID handhelds, and incentives.
- He has been instrumental in successfully developing and launching Zebra’s RFID data capture solutions and has helped oversee the continuous modernization of the RFID DCS product portfolio.
Scott Denholm on BrightMap 01:36
- Scott Denholm is the Chief Operating Officer of BrightMap, a cannabis seed-to-sale company that focuses on providing immense benefits to their partners using proprietary RFID technology.
- In a way that dramatically reduces labor costs and human error, as a seasoned expert in the world of RFID, Scott brings unparalleled experience to the conversation.
Introduction to RFID Technology 02:14
- Radio Frequency Identification (RFID) technology is not new. It was invented in 1945 as an espionage device by Leon Theremin.
- Nowadays, RFID tech is utilized to prevent theft or identify products.
- In the cannabis industry, RFID tags are utilized by the Marijuana Enforcement Division to track and monitor cannabis growth, transportation, and sales.
- RFID helps the cannabis industry save time and money by leveraging the data collected to track inventory and support timely business decisions.
Benefits of RFID Technology 02:35
- It is possible for cannabis growers and manufacturers to maintain regulatory compliance, reduce labor costs, improve accuracy and inventory reporting, and improve customer service from end to end.
- RFID provides a more intelligent method of capturing data by using low-power radio frequency technology.
- An RFID system can read the information on a tag without requiring line of sight, without a particular orientation or from short read distances.
- Tags can be read from a distance without touching or disturbing a plant. They can read multiple tags simultaneously, increasing speeds 10 to 15 times faster than barcodes.
- Tags are durable against impact and environmental factors like soil. You can locate tags making it easier and quicker to find misplaced items.
- You improve and simplify reporting and compliance processes.
- For the cannabis industry, RFID offers a unique ability to track and trace an item’s current location and movement, in this case, plant buds or infused products.
Components of an RFID System 04:03
- A basic RFID system includes tags, antennas, readers, and software that ties the system together.
- An RFID system detects tags affixed to items and reads data encoded on the individual tags.
- Plant or batch tags are the devices that transmit location and other data to the RFID readers and software.
- Readers come in both handheld and fixed form factors and are often combined.
- Antennas are used to read signals from the tags, and the RFID software platform visualizes the data you’re collecting.
- For states regulated by Metric, plant, and package tags are provided to each licensee by Metric.
Benefits of an RFID System 04:22
- It improves tracking movement, compliance, and expense management.
- Each plant is assigned a unique ID that follows it all the way to harvest.
- It tracks plant location movements, dates, harvest aids, strain type, and strain mother.
- Custom area designation allows room and plant creation; you always know where your plants are at any moment.
- The rooms in a grow facility were carefully designed with purpose and reason, so you must use that same chair when setting up your management system.
- As your plants mature through the stages of life, they move from various care areas, and you get to keep track of every movement from seedling to cured fat flower.
- A class-leading system like this will include integrations with all regulatory committees and government agencies to ensure that all transactions occurring are compliant and tracked accordingly.
- From nutrients to labor, there are many costs associated with growing cannabis. When you track all of these costs associated with the plant as it journeys from seed to flower, you can track this and actually lower your cost.
- In addition to that, all accounting works into RFID.
- For the cannabis industry, the software platform will also automatically send compliance data directly to the state agency.
- RFID is sophisticated, modern, and it’s going to save your business time and money.
- Your best bet goal is to obviously find an integration partner for initial analysis setup and ongoing.
Introduction and Veterans Day Recognition 07:18
- The video starts with recognizing Veterans Day.
- The host, who is an immigrant and a refugee, thanks the veterans for their service.
- A veteran, Scott, who served in the US Navy, is also present in the discussion.
RFID in the Cannabis Industry 09:00
- One of the hosts asks if RFID can be used to track election ballots, but it’s a joke.
- RFID is being utilized in the cannabis industry for tracking and operational efficiency.
- RFID helps in tracking the growth of cannabis plants, inventory control, quick inventory checks, and loss prevention.
- Last week, one of the dispensaries, Urban Leaf, announced that they are moving to RFID within the dispensary.
- RFID solutions for delivery are also available.
Benefits of RFID 09:38
- The use of RFID helps in auto data capture of information that humans can’t manually enter.
- Humans are bad at dealing with repetitive and redundant tasks.
- Using RFID eliminates user errors, automates and speeds up the process, and makes everything cleaner.
- RFID can be used to automate inventory, bring things in through a doorway through receiving portals, and put stuff on the stock floor.
Inventory Management and RFID 14:15
- The cannabis industry deals with inventory and employees like any other aspect of retail, so it is important to use technology like RFID for auto data capture capability.
- RFID helps to eliminate errors that may arise when people interact with products, and it allows businesses to put people where they are good at dealing with other people.
- RFID can be used to track inventory and make businesses more operationally efficient.
- RFID can be costly, so it may not be feasible for smaller businesses.
Enhancing Customer Experience with RFID 14:48
- RFID can also enhance the customer experience, not just track inventory.
- For example, RFID-enabled shelves can provide an interactive experience for customers when they pull products off the shelf.
- This experience can include more information about the product, such as where it was grown and the entire process behind it.
Applying RFID in Different Cannabis License Categories 16:04
- Different cannabis license categories, such as dispensaries, craft growers, infusion, and transport, may require different approaches when it comes to RFID.
- For example, dispensaries may benefit from RFID to enhance the customer experience, while transport businesses may need it for logistics and inventory management.
- RFID can be expensive, and smaller businesses may not find it feasible, while larger businesses may benefit from it in the long run.
- It is important to think about longer-term goals and make the proper investment the first time, especially if a business is planning on expanding to multiple locations in the future.
How Cannabis Businesses Can Optimize Their Operations
- RFID is an important technology that can help cannabis businesses with inventory management and enhancing the customer experience.
- However, it can be costly, and smaller businesses may not find it feasible, while larger businesses may benefit from it in the long run.
- It is important to think about the specific needs of different cannabis license categories and make the proper investment for the long term.
The Fundamentals of Keeping Your Business Open 20:48
- As a business owner in the cannabis industry, being licensed, open, and having products to sell is fundamental.
- Meeting the first two criteria, namely being licensed and open, is critical to having a business to run.
- The cannabis industry has varying license fees from state to state, ranging from $2,500 to over $50,000, and protecting that license is crucial.
- Regulatory agencies require businesses to know where their products are at all times and be able to prove it.
- Technology like RFID can help control what businesses are shipping and receiving and ensure delivery accuracy.
Choosing the Right Partner and Tag 23:33
- Choosing the right partner and tag is crucial to the success of an RFID system.
- The tag is a critical component to the system, and there are many great tags in the industry that can enable RFID use cases.
- Working with partners who have experience in the industry can help businesses choose the right tag for their needs.
When to Seek Assistance 25:25
- Seeking assistance as early in the planning process as possible is recommended.
- Spending on growth items is understandable, but compliance must also be considered.
- Referring to experts in the industry, like Scott, who have the software and ability to implement the RFID system, is essential.
Understanding the Basics of RFID 26:49
- The speaker emphasizes the importance of understanding what you’re looking for before calling someone like him or anyone in the RFID world.
- Before calling, he suggests looking at your processes and finding out where your mistakes are happening and where your cost centers are.
- Once you have an excellent functional understanding of these things, then you can call someone in the RFID world to have real conversations about how they can save you money and what to do to put a return on investment.
When to Reach Out for RFID Solutions 29:01
- The speaker suggests calling after you have a license and your facilities are set up while you train your people.
- Then, you can look at how to automate those processes.
Online Resources for Learning About RFID 30:36
- The speaker suggests linking up with him on LinkedIn or Leaf Wire to converse about RFID.
- There aren’t any stupid questions, and he believes that iron sharpens iron, so it’s essential to have conversations to understand the technology and its benefits.
- He can’t sell you anything, so don’t feel pressured to do anything other than educate yourself and make the right decision.
- The speaker suggests investing in something that can grow as your business grows instead of buying something cheap with no support.
Other Resources for Learning About RFID 32:22
- The speaker suggests looking at AIM Global and Global because they do a lot with RFID and a lot of the standards.
- He also suggests looking at the brand of RFID that’s used in metric states.
Understanding RFID technology 32:45
- ISO (International Organization for Standardization) has established a functional specification for RFID technology.
- UHF RFID (Ultra-high-frequency radio-frequency identification) is also called EPC (Electronic Product Code) and Gen 1 class 2.
- It is essential to do research before using RFID technology to understand its functionality, which includes UHF, HF (High-frequency), microwave, passive, and active technology.
Resources for understanding RFID technology 33:02
- ISO, GS1, and RFID Journal Live are some of the reference websites for gaining an understanding of RFID technology.
- RAIN RFID is a consortium of companies focused on promoting UHF RFID technology.
Seed to sale concept 36:09
- Seed to sale is a term used to describe the complete life cycle of cannabis from the moment it is planted until it is sold to the customer.
- Seed to sale involves traceability, compliance, and inventory tracking.
- The concept of seed-to-sale can vary depending on who is talking about it, with retailers, growers, and other stakeholders having different perspectives on what it means.
Importance of RFID technology in seed to sale 36:14
- Using RFID technology in seed to sale can provide customers with transparency and visibility into the product they are purchasing.
- From the perspective of growers and dispensaries, RFID technology can help with compliance and inventory tracking.
- RFID technology can provide insights into the growing process and ensure that customers receive quality products.
Using RFID Technology for compliance and inventory tracking
- The seed to sale concept can be complex and can vary depending on the stakeholder’s perspective.
- The use of RFID technology can help with compliance, inventory tracking, and provide transparency to customers.
- Several resources are available for understanding RFID technology, including ISO, GS1, and RFID Journal Live.
Importance of understanding processes and getting certified 38:50
- Understanding processes and what you want to accomplish is crucial.
- Terms like Six Sigma and Green Book are examples of frameworks that can be used to get certified and get processes under control.
- Lean manufacturing is an example of a framework that can help to make the industry more efficient.
Importance of RFID in the cannabis industry 39:44
- Once cannabis is decriminalized or legalized, there will be a need to ensure that the product is safe and efficient.
- RFID can help to ensure that cannabis products are safe and efficient.
- RFID can be used to track products from the grower to the processor and to the retailer.
Importance of tracking employee movement 41:36
- Employee badges with RFID can be used to track the movement of plants and products.
- This can be useful for understanding who moved a product and when.
- It can also be useful for understanding the overall process of moving products from the grower to the retailer.
Smart shelves and digital signage 42:06
- Smart shelves can be used to showcase products and brands.
- Digital signage can be used to educate customers about products.
- This is a way to interact with customers in a way that was not possible before.
FIFO and First Expired Out 43:55
- First in, first out (FIFO) and First Expired Out are important concepts in the cannabis industry.
- RFID can be used to help ensure that products are not stale or expired.
- This is an important consideration for retailers and growers alike.
Importance of Branding and Display Space 44:58
- Cannabis dispensaries can partner with growers to highlight their brands using RFID technology.
- The concept is similar to traditional retail where companies pay for premium placement and display.
- This can create brand loyalty and help the dispensary owners stock more products.
Benefits of RFID Technology 45:15
- RFID technology can help with creating loyalty apps and alerting customers about product recalls or issues.
- It also helps with operational efficiency and supply chain management.
Integration of RFID with BioTrack 48:56
- BioTrack THC does not require RFID technology but can integrate with it.
- If in a Metric state, tags are required within the grow and can be obtained from Metric.
- Zebra Technologies is a recognized leader in providing RFID equipment, tags, and labels.
Part 3 will discuss the benefits of RFID technology in promoting social equity in the cannabis industry.
Integration of RFID data with Metric or other state programs 53:46
- All state systems have APIs that can be used to connect with RFID data.
- Companies like Zebra provide tools and SDKs to help developers write applications that can read RFID data.
- These APIs can be used to push, pull, and extract data from the regulatory systems.
- The state regulatory systems have a minimum requirement for what data needs to be provided. However, companies can extract more data and manipulate it for their benefit.
- Public APIs for Metric can be accessed through a state number like co, mt, md, etc. followed by “metric” or “api.metric.com”.
- The same goes for Kern and BioTrack in those states.
- The data that can be extracted from these APIs varies based on what the state allows.
Other IoT technologies that are more cost-effective than RFID 56:53
- IoT stands for the Internet of Things, which refers to connected devices.
- BLE is an IoT technology that is more cost-effective than RFID.
- However, RFID passive has come a long way in terms of cost.
The use of RFID in non-metric states 52:23
- In non-metric states, there is nothing that prevents the use of RFID technology.
- Serial numbers can be printed for the products, and these numbers can be used to print barcodes or RFID tags.
- Companies can extract this data and manipulate it for their benefit.
The availability of APIs to integrate RFID data 53:46
- Zebra provides tools and SDKs to help developers write applications that can read RFID data.
- State systems have APIs that can help integrate RFID data.
- Companies can extract this data and manipulate it for their benefit.
- Public APIs for Metric can be accessed through a state number like co, mt, md, etc. followed by “metric” or “api.metric.com”.
RFID technology and its components 52:12
- RFID technology consists of a multi-modal tag with a human-readable number, a barcode, and an RFID.
- In metric states, this technology is required because the state regulators and inspectors want it that way.
- In non-metric states, the technology is an open standard and can be used by anyone.
- Zebra provides RFID readers and APIs to connect with these readers.
RFID data and APIs 53:46
- State systems have APIs that can be used to connect with RFID data.
- Companies like Zebra provide tools and SDKs to help developers write applications that can read RFID data.
- Public APIs for Metric can be accessed through a state number like co, mt, md, etc. followed by “metric” or “api.metric.com”.
- The data that can be extracted from these APIs varies based on what the state allows.
- Companies can extract this data and manipulate it for their benefit.
Passive RFID Technology 57:50
- Passive RFID is one of the most cost-effective IoT sensing technologies available today for the cannabis industry.
- Passive RFID technology is an IoT technology that is becoming more popular in the industry today.
- Passive RFID technology costs around 50 cents or less per tag, depending on the volumes required.
- Beacons can cost around five dollars, which is still cheaper than other technologies such as active RFID.
Return on Investment (ROI) 58:30
- ROI is an essential factor when deciding on a technology to adopt.
- A good ROI is around four months, and if an application can provide a return on investment in four to five months, it is a worthwhile program to invest in.
- It is crucial to look at the cost-effectiveness of a technology based on what you’re trying to achieve and what it’s costing you.
BLE Technology 59:47
- The use of BLE technology in the cannabis industry is unclear.
- Determining a cost-effective use case for BLE technology in the industry is challenging.
- However, the industry is growing, and with legalization on the horizon, many new use cases may arise.
Ultra-Wideband Technology (UWB) 01:02:10
- There is no passive RFID technology available that can read within a car.
- It is passive, and metal reflects the RF energy, making reading the RFID tag inside a delivery van impossible.
- UWB technology can be used to track RFID strength signals in a car, but there are no passive RFID tags that can be used in the industry.
Understanding RFID technology and its energy usage 01:03:19
- RFID technology works at the same set of regulations that cell phones work off of, so they can’t put out any more energy than a cell phone does.
- The minimum amount of energy that RFID readers use is very minimal.
- The RFID technology works by a set of regulations that limit the amount of energy used by the reader.
- The RSS data return signal strength is used to show the strength of the signal sent back by the RFID reader.
- The RSS data is affected by various factors like how far away the tag is, how much energy was harvested, how it took to turn on the tag, how much it sends back, and more.
- The RSS data can be affected by the wetness of the plants or if the RFID reader is inside a vehicle.
- To read something in a car, one can use an active tag, which costs around $20.
Outfitting the inside of a car with an RFID reader 01:04:18
- Customers are interested in outfitting the inside of their car or van with an RFID reader.
- It is possible to put a reader in the vehicle, power it up off the vehicle battery, and connect it to a cellular network via cellular modem.
- Reading the tag from outside of the vehicle would be quite difficult because of the physics involved.
Promoting diversity and inclusion in the industry 01:05:00
- The speakers discuss what can be done to promote social equity, diversity, and inclusion in the cannabis industry.
- The partnership with the medical cannabis community is one of the steps that organizations are taking to promote diversity in the industry.
- The organizations are committed to doing what they can to promote diversity within the industry.
- One of the speakers suggests reaching out to high school kids, particularly young girls and people of color, to encourage them to consider software development as a career option.
- The challenge to the audience is to pay attention to who’s around them and what they’re doing in their community and hold them accountable for their actions.
- Spending money says a lot about what kind of support one is giving, so pay attention to where one is spending their money.
Thanking the panelists and sponsors 01:09:32
- The medical cannabis community is thanking the panelists and sponsors.
- It’s a show of appreciation for their participation and support towards the discussion.
- The event is an opportunity to discuss cannabis radio frequency identification (RFID) technology.
Engaging a diverse audience 01:09:41
- The discussion is engaging a diverse audience that has not been engaged before.
- The topic of RFID technology is bringing together people from different backgrounds.
- The dialogue is an opportunity to learn more about the uses of RFID technology in the cannabis industry.
Appreciation for the partnership 01:09:48
- The medical cannabis community appreciates the partnership towards educating the public about the uses of RFID technology.
- It’s essential to work together to bring about awareness of the benefits of RFID technology.
Continuation of the dialogue 01:09:52
- The dialogue about RFID technology will continue to bring more understanding of the technology.
- It’s an opportunity for people to ask questions and learn more about its use in the cannabis industry.
Conclusion 01:09:55
- The discussion ends by thanking the audience and inviting them to continue the dialogue.
- The medical cannabis community believes that the more people learn about RFID technology, the more they will appreciate its benefits.
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