New Cannabis distribution alternatives taking place.
With cannabis consumption booming new Cannabis distribution options are rising, especially in Europe where the cannabis industry is making a big push for its recreational use.
Studies are in the making, and countries like Germany and Switzerland are with a head start, which might signify a giant tidal wave of opportunities for entrepreneurs in this growing sector.
This means that smart parcel lockers may have, in one way or another, a pivotal contribution to the success of this mission.
Do you want to know how? With Smart Lockers as the new Cannabis distribution alternative.
- Cutting down the cost of last-mile operations
- Optimizing the distribution operation & storage
- (24/7) cloud-based remote monitoring with data log
How to tackle the illicit market?
The Last Mile accounts for over 41% of overall supply chain costs in most industries, and the cannabis sector is no exception.
An industry that wants to tackle the illicit market may compromise the victory lap over these unregulated side markets.
A recent poll published in Recreational Europe 2022 by First Wednesdays stated that tackling the illicit market is the most significant benefit of legalization by all European countries.
Cutting down costs in this expensive part of the process will allow for competitive pricing of the regulated market over the unregulated one.
Sustainability-wise, the line of the product and package manufacture communication will be protected and coherent reducing traffic on the roads and consequently CO2 emissions.
New solutions within the cannabis distribution matter must follow such as Buying Online & Pick-up In-store (BOPIS) and PUDO (Pick-Up & Drop-Off) are starting to weigh into the conversation.
Adopting a hybrid model, with the installment of automated electronic locker hubs spread out across cities for the use of multiple couriers and customers, will be a significant play. Delivering in bulk is a lot more sustainable than a door-to-door one.
But, of course, there will be challenges.
Cannabis Distribution: Last-Mile Logistics
The cannabis distribution logistics should be compared to the money distribution use case. It’s valuable, and security is essential.
Europeans are very comfortable with any form of cannabis legalization but expect tight control policies in return.
A coordinated effort among platforms and delivery providers is essential to go smoothly over eventual legal barriers.
This means that the ordering process and the fulfillment must be in the same tune. Laws and regulations will vary from country to country, so in terms of logistics, the whole flow of the cannabis distribution compliance must be aligned, and some of the downsides that the US Market brought up must be avoided beforehand.
In the scope of the customer, convenience has to be a trademark in this type of service.
Yonatan Meyer, Partner at Casa Verde, told to First Wednesday for the Recreational Europe 2022, that “upon legalization and establishment of a regulatory system, Germany is set to become the single largest recreational cannabis market in the world. While the fragmented US market has enjoyed a half-decade head start, the industry’s growth/reach has been curtailed by the banking industry’s ongoing federal criminalization and de facto black listing.
“We think Europe has the potential to be larger than the American recreational market given that it has a population that’s more than double the size of the US. With that, according to BDSA, Europe had a total cannabis market of around $680m in 2021 and we see the continent with a potential addressable market of $229bn, so the room for growth is immense.” – BORIS JORDAN, Executive Chairman of Curaleaf.
Market Trends & Data
Access to market trends and consumer data is critical for success in a constantly more data-driven world.
This is where the “smart” comes in handy, as automated Parcel Lockers have this 24/7 capability of registering all the data log of the locker’s activities.
Talking about tax revenue, they are dependent on the legal market to override the illicit one. The success of one weakens the other and It’s a matter of domino effect. If any ancillary industries fail with the lack of professional services, technology, packaging, distribution, and delivery, the success rate decreases since convenience will be compromised.
For some, cannabis is simply an academic topic of debate, while others’ viewpoints are deeply rooted in emotion, from blanket adoration to genuine fear. Education will be vital in demystifying some of these fears.
Safe to say that these next 3 to 5 years will be extremely crucial and exciting for the progress of this industry!
How can Bloq.it smart lockers can help Cannabis distribution and Logistics?
At Bloq.it, we are at the forefront of locker systems integration and development for various industries, and the Cannabis also industry is one of them. We strive to develop the smartest application interface that adapts to existing cannabis distribution workflow, letting you gain full power over the service interface with 100% adaptability and an ideal perk for the Cannabis sector.
Our solutions are already being used by several companies across the world.
Want to discuss more on how our technology can help your business optimize operations?
Reach out here on the website or to our industry specialist Bernardo Amaro and let’s find the best solution for your cannabis enterprise, together.