08 Apr Is RFID Worth It in the Cannabis Industry?
Three Ways Spending on RFID Can Save You Money
For years, companies across all industries have used RFID to maintain full visibility over their inventory and assets. Now as the cannabis industry grows, dispensaries are using RFID to identify, track and manage the plants in their greenhouse. Despite its applications in this industry, many dispensaries choose not to implement this technology because of the price tag.
It’s true: RFID is expensive. A single tag can cost you anywhere from $0.09 to $40 depending on the level of technology you implement and whether it is passive or active. For many, that price tag is reason enough to abandon ship and search for cheaper tracking solutions.
But there are several factors to consider for an RFID tracking system that may make the expense worth it for your business. In fact, it may even save you money in the long run.
Automated Data Collection – Using RFID on Your Plants to Increase Efficiency
The government requires you to document almost everything you do during your day-to-day operations. Think about it: How many plants do you have in your greenhouse? Factor out how much time it takes your employees to record the data on each plant.
While it’s always helpful to take visual stock, relying on manual data collection opens your business up to costly errors. An RFID system eliminates human error and can scan multiple tags at the same time, including those that are out of sight. Not only does this remove human error and cut down labor costs, but it allows your employees to focus on their other tasks.
Supply & Demand – Using RFID to Monitor Inventory & Product Performance
Did you know that you could receive a hefty fine based on inventory discrepancies? The fines vary by state, but in California, a cannabis dispensary can receive fines up to $30,000 for “significant discrepancies” . More specifically, California defines a significant discrepancy as a difference of 3% or more in actual inventory compared to a dispensary’s records .
RFID can help you stay on top of your inventory in real time thanks to its automated data collection. This technology doesn’t just keep you compliant. You can also use your inventory data to help you make business decisions and monitor which of your products is performing well. This will help you plan for the future and keep a pulse on your customers’ preferences. Plus, with this data, you can quickly turn over your inventory reports during compliance inspections.
Temperature Sensing – Keeping Your Plants Healthy
For cannabis plants to survive, their environment must remain at a certain temperature and maintain low humidity. If their environment becomes too humid, your plants may mold, meaning you have to restart the cultivation process all over again.
Dispensaries can leverage RFID’s environmental sensing capabilities to monitor their greenhouse’s environment. This includes measuring the temperature and ambient light in your greenhouse. This ensures your grow is at the correct temperature. Historically, agriculture workers also use environmental monitoring data to conserve water and forecast crop yields.
So, Is RFID Worth It?
Yes*, it can be! RFID’s ability to collect data on a dispensary’s inventory, product performance and greenhouse environment has already propelled growth in companies around the country! Now, here’s our * on yes: This investment hinges on what your needs are, your budget and how you hope to grow your business. That might mean you’re not ready for RFID yet. That said, you may benefit from using different hardware solutions like barcode technology.
You can dive even deeper into RFID systems and their price tags by downloading our Need-to-Know Starter Guide for RFID Systems. This guide gives a high-level overview of what RFID is and what it can do for your business, as well as sample price ranges you can use to calculate how much your RFID system could cost.
Then call us! Our experts can talk you through your current tracking needs and determine if and how RFID can address them.
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