Tapping into the Lucrative Cannabis Logistics Market

October 08, 2019 - By: Baystreet Staff


Supply chain logistics can be a handful for any sector, but the cannabis industry faces its own set of challenges when it comes to the safe transport of its products. In the beginning, cannabis producers greatly underestimated the infrastructure needed to fulfil its orders, leading to shipping delays on products. And that was just one barrier. While dried cannabis flower can be easily transported via Canada Post and CBD can be sent through United Parcel Service, Inc. (NYSE:UPS), when it comes to ensuring the safety of fragile cannabis plantlets, greater precautions must be taken. There is also the issue with security during transport, which is where companies like 3 Sixty Secure Corp (CSE:SAFE) (OTCQB:SAYFF). Major companies like XPO Logistics, Inc. (NYSE:XPO) have the opportunity to capture significant market share by ensuring the delivery and security of cannabis transports, however, it is smaller tech companies like TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF) and LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) who have already swooped in to help cannabis companies.

Medical cannabis verification company TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF) has developed a blockchain-secured platform to track intellectual property (IP) for cannabis and provides DNA-based cannabis product validation. The company’s seed-to-sale tracking services modernize the inventory tracking system and also provide medical cannabis customers with details about lab testing results and the cultivar. Meanwhile, LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) is bringing its flagship 1SHIFT Logistics platform to the cannabis industry via a strategic go-to market alliance with Segra International, a cannabis agriculture technology company.

Solving Cannabis Transportation Barriers

Segra International specializes in plant tissue culture and produces disease-free, robust and true-to-type cannabis plantlets which it ships to licensed producers globally. The company has teamed up with LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) to utilize its 1SHIFT Logistics software to gain access to its GPS and sensory capabilities, allowing Segra to know exactly where the plantlets are and provide real-time and historical temperature readouts and total travel time logs. Brookdale, one of Canada’s leading nurseries has already adopted the 1SHIFT platform and now with Segra, extending LiteLink’s reach from nursery plants to cannabis was a natural fit. These capabilities will improve Segra’s ability to manage the quality of its products as well as provide real-time updates to awaiting customers, which includes some of the top Canadian licensed producers.

The alliance comes at a perfect time for Segra as it prepares to launch Canada’s first commercial cannabis nursery. LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF)’s software capabilities will provide the company with a critical layer to its quality assurance program and provide both Segra and its client's peace of mind.

The trial with Segra for the transportation of its cannabis plantlets is only the beginning for LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) and its move into the cannabis tracking industry. What’s more, its 1SHIFT Platform’s new GPS and sensory capabilities can be applied in the cannabis industry as well as within any industry that requires the shipment of sensitive materials - from live products to plants to perishable food items.

TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF) is also working with Segra International, signing a letter of intent (LOI) in August to make Segra its primary genetics verification provider. As part of the LOI, Segra would be the lead genetics partner in a medical cannabis verification pilot program between TruTrace and Shoppers Drug Mart.

Segra’s role will involve extracting DNA from cannabis samples processed at its Genotyping and Molecular Lab Services Division and providing unique DNA fingerprint codes, allowing for objective confirmation that as-supplied lots of cannabis remain isogenically pure to the original reference material.

Transporting Cannabis Safely From Point A to Point B

Segra International has already signed on with four major Canadian LPs to provide its plant micropropagation services to help those companies ramp up production. Prior to teaming up with LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF), however, Segra relied on third-parties to transport insulated boxes containing up to 10,000 cannabis plantlets globally.

With a shelf life of only four days, these cannabis plantlets are under a time crunch to get from point A to point B. They are also subject to potential temperature changes while being transported.

Luckily, with LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF)’s logistics software, Segra and its clients can rest-assured the plantlets will be closely monitored through real-time tracking, tracing and key temperature sensors to improve visibility significantly. Having this technology in place will help drive out the best customer experience, potentially lower insurance costs through visibility and build history trends of data across different geographical locations to improve the logistics process.

When it comes to secure transportation, 3 Sixty Secure Corp (CSE:SAFE) (OTCQB:SAYFF) is leading the charge. The company provides numerous security services to LPs, including security assessments and design at the retail and production levels, on- and off-site monitoring of facilities and secure vehicle and air transport. The company took its capabilities a step further by signing a partnership with Avante Logixx, to provide clients with advanced video surveillance with closed-circuit TV services.

To date, 3 Sixty Secure Corp (CSE:SAFE) (OTCQB:SAYFF) has signed on over 60 LPs including Aphria, Canopy Growth Corp, and Tilray.

Meanwhile, companies shipping CBD products can opt to use United Parcel Service, Inc. (NYSE:UPS) to get their products from point A to point B, but the company strictly prohibits the shipment of any products containing marijuana or CBD originating from a marijuana dispensary.

The Most Reliable Tracking and Tracing Software for the Cannabis Industry

Prior to moving into the cannabis industry, the LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) team focused on perfecting its 1SHIFT logistics platform to solve fragmented and outdated technology problems in the logistics and create a true end-to-end logistics solution.

The platform utilizes several innovative technologies including artificial intelligence (AI), machine learning, predictive analytics, blockchain, GPS tracking. The current 1SHIFT Platform has been designed with digital tracking, notifications, automatic shipments, and exception and problem management all from a mobile device.

Now, with the integration of temperature sensors, the applications for LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF)’s 1SHIFT platform are seemingly endless.

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