To understand the full benefits of RFID and IVA (intelligent video analytics) one must consider the five (5) key drivers of cannabis facilities and retail dispensaries
- Compliance
- Improving Operations (labor, processes, etc.)
- Reducing Out of Stock Product
- Improving Conversation Rates
- Increasing Sales
What the research shows
Inventory Accuracy without RFID is around 60%* – translating to missed sales opportunities and putting customer loyalty at risk.
RFID can increase inventory accuracy by up to 99.5%
One of the first steps that leading brands of marijuana growers, cultivation
facilities and retail dispensaries take is the pilot program. This will help you discover new insights into your business operations and unlock new opportunities for growth and sales. Starting with an existing grow house or retail location is a great way to determine the way forward. In the examples below we demonstrate the process that has been dubbed “Total Harvest Coverage™” by thought leaders in the cannabis sector.
Pilot Programs to Measure benefits & ROI of RFID & Intelligent Video Analytics
At the Cultivation Facility
Starting with business goals, we create a list of metrics that will result in accurate benefits to the growing operation. How long is the drying time at location A vs. location B? How long do plants sit before processing? Reduce inventory carrying costs by X.
- Tracking automation and a visual record of each plant’s location results in a 360 degree compliant operation
- How a plant may have been removed or misplaced and who was involved
- Discover where more staff training is required or where processes could be improved or sped up (saving labor)
- Seamlessly share video and RFID data evidence with law enforcement as needed or required – quickly and efficiently.
At the Retail Dispensary
Managing multiple product types (flower, edibles, oils, concentrates, shatter and consumables) is a challenge for specialty retail stores. How does RFID track inventory to meet the demand in-store pickup & online orders? How do we create a seamless shopping experience that increases customer loyalty? What can we learn from RFID / IVA / SSPOS that could integrate into Weedmaps or Leafly promotions?
Keeping business goals and compliance with state laws for security cameras and video retention (40 days, 55 days, etc.) in mind, a 360 degree view of the cannabis business will fully emerge – and items moving from vault rooms to retail display cases, back to storage rooms and ultimately at the point of sale (SSPOS) can help you unlock new insights for sales, marketing as well as loss prevention and inventory management – all in one platform.
Identify Hiccups or Pain Points by:
- Retail Dispensary Location
- Department
- Item / Products
Which products is the store consistently low on inventory?
Do you have merchandising standards / branding guidelines to adhere to?
Optimize the “Order Online & In-Store Pickup” Process
What’s the dwell time from the secure vault. storage cage or ArmorStor room to the retail display case?
Accurate stock availability – if the website says the product is in stock and customers find it’s not available… your store could suffer a negative online review. In today’s day and age, reputation and customer loyalty is everything. With RFID / IVA/ SSPOS you get real-time cannabis product level visibility.
Intelligent Video Analytics (IVA) and SSPOS help with:
- Video integrated with POS data can help dispensary operators cut losses by setting up alerts triggered by suspect transactions, such as voids, refunds or returns
- Run searches across multiple dispensary locations simultaneously
- Using video and analytics like people counting, queue length or dwell time, dispensaries can see how long customers waited in line, of they spent more time in front of a certain promotional display, or if they left the dispensary without making a purchase – and use this data to drive promotions via POS integrations with Weedmaps, Leafly, baker, and more.
The Key Stakeholders | Get them on board
The concept of Total Harvest Coverage™ spans the grow operation (supply chain) processing, IT, Security teams, C-Suite executives as well as loss prevention and the protocols for compliance with state laws & law enforcement.
4 Vital Messages for Stakeholders
- Clear Value of inventory accuracy
- Inventory tracking is vital to state law compliance
- Diversion of cannabis product must be reported promptly
- Quickly getting inventory to customers is key to growth & success
The RFID and IVA components of the business operation are building blocks to a complete platform that is transforming leading cannabis brands today. The complete integration of RFID, Intelligent IP Video Surveillance, Smart Safe Point of Sale (SSPOS) and 3D Sensors is the next wave of smart retail in the specialty cannabis sector. Costs of deployments from the onset of security planning, architectural programming vs. retrofit later should be taken into consideration.
For existing operations, a modular and scalable approach can help you improve business operations incrementally without major capital investments. For new business operations, seasoned and experienced security integrators will understand the end to end benefits of more than compliance, but of loss prevention and helping you drive profits to further distinguish your brand.
Information gather from the following sources, deemed reliable but not guaranteed:
*Auburn University RFID Lab, Key Considerations for RFID Pilots and Deployments
