May 03, 2022Four U.S. states signed contracts this spring to launch Metrc's RFID-based solution to manage the production, supply and dispensing of cannabis products. Mississippi, South Dakota, New Jersey and Minnesota all signed up to use the system. As a result, the company now provides its solutions in 21 jurisdictions within 19 states, as well as in Guam and Washington, D.C.
Metrc reports that it serves more than 250,000 users, which include growers, testing facilities, dispensaries, state regulators and law-enforcement agencies. Previously a part of RFID technology company Franwell, the company has applied the RFID technology knowledge it gained related to supply chain management, according to Jeff Wells, Metrc's CEO. "We applied everything that we had learned in those days as Franwell," he recalls, and provided the first state-based solution for Colorado in 2011.
Metrc LLC was formed in 2017 to address the cannabis industry. As legalization has expanded throughout the states, Wells says, the company correspondingly evolved, and it continues to develop and incorporate best practices into its system. Since the firm was launched, several of its early government contracts have come up for renewal, and Wells reports a 100 percent renewal rate. "We believe that we have the momentum to be a national standard," he states.
Four states have recently signed contracts to launch Metrc's RFID-based solution to manage the production, supply and dispensing of cannabis products.
Supporting Cannabis Regulatory Compliance
Metrc has a regulatory and supply chain focus. Its technology is intended to help state governments and regulatory agencies ensure the safety and authenticity of products from the point of harvest and production to the point of sale. The company's solution consists of software, passive UHF RFID tags, a customer support team, and a secure database known as the "control tower," enabling it track every plant, package and product from growth, harvest and processing to testing, transport and sale.
Jeff Wells
In a typical use case, Metrc provisions the RFID tags to track plants and packages throughout the entire supply chain, once they have been ordered. Growers or other companies can request the tags for new plants, then attach them to the plants when each one becomes viable—typically when they are around 12 inches in height, the company reports.
Metrc provides Avery Dennison Smartrac's AD-237 inlays with Impinj M6 inlays, while the company is also testing M7 chips. The tags store the unique ID number for each plant and links that information to other details, such as the plant's condition (immature or mature, for instance), weight and other data points. Each RFID tag then remains with the plant through harvest. During the growing process, growers update details related to the plant's maintenance. Workers can leverage the Metrc data by reading the tags with handheld readers.
As plants are harvested, a package is created in which multiple products are contained, and each plant tag ID is linked to the new RFID tag on the package. The packages are then moved through the supply chain to the manufacturing site, where the tags are read and the products are repackaged into new ones, each of which receives a new RFID tag that is linked to the originating package or packages. All events related to the change of custody or processing of a package typically involve the user reading the tag ID again, thereby linking all product in the packaging to a specific event.
Monitoring the Supply Chain from Grower to Dispensary
Metrc makes the details accessible to regulators and other interested parties via a user interface. Another alternative is to access data in a file system, or via integration with a third-party system. However the data is accessed, it provides state regulators with the ability to monitor the entire supply chain for public safety and decision-making purposes. Regulators can use this information not only to gain real-time visibility, but also for inspection efficiency, in order to reduce the need for onsite physical inspections.
The cannabis industry is seeing efficiencies in using RFID for internal processes to reduce labor and enhance data accuracy, Wells says. Growers and other members of the supply chain can also use the collected data to ensure traceability, as well as the efficiency of their processing and transportation of product. "By using our proprietary RFID technology," he states, companies can ensure the product is secure and within compliance of state regulations, while also "streamlining the seed-to-sale tracking process." In addition, Metrc provides support and training staff for both regulatory government users and industry users.
When employed properly, Wells says, the technology provides a system of record for the cannabis market's ecosystem. RFID also enhances productivity and return on investment for cannabis businesses, the company notes, by increasing accuracy regarding product production and shipment, and by correspondingly reducing the incidence of errors. "You can imagine the possibility for inaccuracies with a handwritten ledger, for example," he says. A well-configured RFID technology setup can provide accuracy of more than 99 percent.
To date, the system has been in use predominantly in the United States. As cannabis becomes legalized in other parts of the world, however, Metrc may expand into those markets as well. "We will continue to provide the most trusted solution domestically," Wells says, "while also looking to expand internationally." The solution is offered on a fee-based approach, so companies using the technology pay a small fee for each tag, along with a reporting fee.
Metrc also sells or leases handheld readers to regulators, but not to cannabis companies. Going forward, the firm is exploring the design of a more sustainable RFID tag, with a focus on the material of the antenna substrate, for instance.
Key Takeaways:
- Recent contracts with four more states put Metrc at the forefront of RFID data collection for regulatory compliance in the United States.
- RFID automates data collection about the growing, harvesting, production and sale of cannabis products throughout the United States.
Exhibitors at RFID Journal LIVE! 2022 will offer solutions for monitoring the cannabis supply chain. To learn more, visit the event's website.
