Latest Research On Blockchain In The Legal Cannabis Supply Chain Highlighted At SXSW

Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficiencies is latest addition to research firms’ eBook series

TEXAS: Worldwide spending on legal cannabis is growing rapidly, but the market will not realize its full potential without efficient supply chains to deliver an expanding array of products. Blockchain technology could address this issue by providing greater visibility, traceability and transparency as well as facilitating regulatory compliance.

This is according to a new eBook titled Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficienciesfrom Chain Business Insights, an independent research firm focused on the application of blockchain and related technologies in supply chain management and trade finance. The eBook’s author, Sherree DeCovny, will present her findings at SXSW in Austin, TX on March 15, 2019.

Uruguay and Canada were the first countries to fully legalize cannabis, and more nations are following suit as its medical and recreational uses gain wider acceptance. Countries such as Colombia, Israel, Lebanon, Mexico and Thailand, where there are optimal growing conditions for cannabis, are looking to establish substantial legal export markets for the product. The potential economic benefits are vast considering the potential to fuel business growth, create jobs and raise tax revenue.

Blockchain in Legal Cannabis: Weeding Out Supply Chain Inefficiencies analyzes the cannabis market and the legal and structural issues that impede operational performance, particularly in the U.S. Cannabis is illegal at the federal level, which means that interstate commerce is prohibited. As a result, there is an imbalance between supply and demand across the country. Other constraints such as a lack of standards, limited access to banking services, and transportation restrictions including limits on when trucks carrying cannabis products can operate, create supply inefficiencies that drive up prices and disrupt supplies.

“For the cannabis industry to succeed, companies will need to build and manage efficient supply chains in a fragmented, highly regulated market,” says DeCovny, co-founder of Chain Business Insights. Blockchain could be a key enabler.”

The cannabis supply chain is inherently complex. Many national and international growers cultivate cannabis, which has to be tested and approved before being manufactured into various products and distributed to end customers. The patchwork of legal jurisdictions adds another layer of complexity.

The industry has started to develop the infrastructure and best practices that will underpin future supply chains, using cutting edge technologies such as Internet of Things sensing and machine learning. Blockchain technology is a key component of this effort.

“Blockchain is an excellent fit for the cannabis business, where numerous trading partners need to exchange information securely and have it updated instantaneously when product changes hands,” explains DeCovny. “Also, blockchain-based solutions can provide levels of supply chain traceability and visibility that the industry and regulators need.”

Smart contracts – computer code hosted on blockchains – can automatically implement business processes and execute contract terms. These capabilities can help companies to manage the transactional traffic created by the cannabis business.

The new eBook details existing and emerging blockchain solutions, and examines blockchain technology’s potential role in the industry. A case study shows how a blockchain platform in combination with other innovations is being used by a leading player in California to develop an efficient, end-to-end supply chain for cannabis products.  

“In addition to providing a guide to blockchain-related applications and developments for any company with an interest in the cannabis business, the eBook offers important market intelligence for supply chain practitioners outside the industry,” says DeCovny.

Supply chain management is one of the most promising application areas for blockchain technology. The way in which the “greenfield” cannabis industry is harnessing the technology in supply chains provides valuable insights for any practitioner.

To download the eBook, please visit https://www.chainbusinessinsights.com/blockchain-in-legal-cannabis-weeding-out-supply-chain-inefficiencies.html.

Attend session at SXSW – Blockchain in Cannabis: Boosting Market Efficiency.

Flow Kana Raises $125 Million To Build Largest Sustainable Cannabis Supply Chain

Cannabis Industry’s Largest Private Round to Date Helps Drive Adoption of Sustainable Agricultural Model Structured Around Decentralized Small Farms

CALIFORNIA: Flow Kana, the leading sustainable supply chain company and distributor of sungrown cannabis products and services, today announced the completion of a $125 million round of financing – the nation’s largest private funding round for a private cannabis company to date. Gotham Green Partners, which led Flow Kana’s Series A raise in May 2018, invested in the round along with additional private investors to accelerate the company’s rapid growth. Flow Kana has raised a total of $175 million to date to build and scale the California cannabis supply chain centered around small, decentralized, sustainably operated cannabis farms.

Flow_Kana_Logo_Black“We strongly believe the cannabis industry is a catalyst for social change and are grateful to have found investors and partners aligned with this vision,” said Michael Steinmetz, Flow Kana CEO. “Throughout our supply chain, partners and customers have all committed to the sungrown movement and are dedicated to building an industry that has a positive impact on the great challenges that we confront in the world today.”

Flow Kana begins with the small farm ecosystem and is rapidly building a socially and environmentally conscious supply chain for the cannabis industry at large. Small, diversified, regenerative farms working with centralization and connected through technology are scaling to usher in the next era of the world’s agricultural future.

Flow Kana is California’s number one selling flower brand, in partnership with the company’s expanding ecosystem of independent craft farmers from Northern California’s world-renowned Emerald Triangle growing region – Mendocino, Humboldt and Trinity counties. With any Flow Kana or “Powered by Flow Kana” product, customers can trust that regardless of form factor, the cannabis inside is sun grown and cultivated organically by small independent farms in an eco-friendly manner.

“Since our initial investment, Flow Kana has continued to execute on its mission of developing a robust and inclusive California cannabis supply chain,” said Michael Henderson-Cohen, a Principal at Gotham Green Partners. “We are excited to participate in this recent raise, which will enable the company to leverage its unique position in the Emerald Triangle and broaden its reach and message across the state.”