Blockchain company DMG Blockchain Solutions is rolling out a new supply chain management solution designed for the legal cannabis market.
The company announced via press release on Tuesday (Oct. 16) that it is collaborating with technology and finance partners to develop a supply chain management platform for the cannabis market, with plans to first deploy the solution in Canada before global expansion. DMG said it is in discussions with its partners — cannabis industry licensed producers, retailers, quality management service providers and government regulators — to design a compliant supply chain management solution to enhance transparency and traceability of the cannabis supply chain.
Planned features include supply chain automation deploying blockchain, artificial intelligence (AI), machine learning (ML) and Internet of Things (IoT) technologies for a platform that can integrate with existing ERP solutions. The solution will offer smart contracts to facilitate transactions and movement of data between systems, DMG explained, as well as streamlined onboarding of supply chain partners, including producers, distributors, shippers, retailers, and auditing and reporting portals.
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice,” said DMG CEO Dan Reitzik in a statement. “We want to be the first to offer an enterprise-grade solution in partnership with leading technology providers and cannabis producers, processors and distributors.”
He continued, “The first use of blockchain was bitcoin, but the perfect use is supply chain management for controlled products, such as cannabis,” adding that as Canada heightens its position in the global legal cannabis market, there is opportunity for blockchain to provide enhanced traceability of the product as it moves through the supply chain. Greater transparency means faster product recalls, greater ability to ensure compliance and legality of the product’s source and safety, and increased support for legal and tax compliance, he said.
According to DMG’s announcement, citing Deloitte research, Canada’s legal cannabis market is worth an estimated $17.8 billion with 13 million recreational users.