Tech company aims to revolutionize cannabis supply chain

The legal cannabis industry is a work in progress. In many ways, the industry shapes itself as it grows and as more and more places continue to legalize weed.

A key part of this evolutionary process is figuring out what aspects of the burgeoning industry work and what parts don’t, and then searching out solutions to improve the system.

Cannabis logistics company WAYV is the latest example of this evolution. The company just announced the rollout of its “Dynamic Distribution” technology. Designed to streamline the entire supply chain, Dynamic Distribution aims to improve the legal cannabis industry for everyone involved, from cultivators and distributors, to retailers and consumers.

WAYV Launches Dynamic Distribution Technology

On the surface, buying weed at a legal dispensary seems like a very smooth and simple process. You walk into the shop and see a huge range of products and brands. You browse around, select what you want, make your purchase, and you’re out the door.

But what isn’t visible are the numerous processes, companies, and players that operate behind the scenes to move a product from the original grow site to dispensary shelves. This reality is much more complicated and messy.

Before a product makes its way to the final consumer, it passes hands multiple times, moving between growers, manufacturers, distributors, and more. Coordinating all these players and the movement of products between them can quickly become a daunting challenge. And each point along the journey is another potential for inefficiencies, mistakes, or delays to creep in.

That’s exactly what WAYV aims to fix. The company’s Dynamic Distribution technology integrates all points of the supply chain into a single, easy-to-use interface.

Retailers log on to the platform’s marketplace, where they can learn about new brands and products, place orders, make payments, and track shipments in real-time. Distributors and brands likewise have access to a massive network of retailers, and have a single tool for managing shipments, inventory, payment processing, and more.

With Dynamic Distribution, what has always been a fragmented process involving multiple companies and steps is now a single digital platform.

Using Digital Technology to Solve Cannabis Challenges

There are a couple of key technological innovations that undergird all of this.

One of them is a streamlined payment processing technology. Given the legal tensions surrounding weed, financial transactions have always been a problem. Typically, the industry relies almost exclusively on cash. Now, with the Dynamic Distribution platform, companies make payments just once and then the software quickly and securely disburses payments to all upstream players.

The other key technology has to do with optimizing inventory and shipping. Specifically, WAYV has created an algorithm that predicts what products need to be in which locations—before they’re ever actually ordered.

This feature allows for faster-than-ever shipping. In fact, WAYV says that Dynamic Distribution is capable of delivering orders on a next-day turnaround.

“Dynamic Distribution optimizes all aspects of existing distribution infrastructure to provide the best overall experience for brands and distributors and next-day delivery for retailers and customers,” WAYV CEO Keith McCarty said. “Brands and distributors have never had this level of choice, speed, and quality throughout the supply chain.”

Innovating the Cannabis Industry…Again

According to McCarty, WAYV’s Dynamic Distribution is largely the result of his prior experience in the consumer-facing side of the industry.

Prior to his work with WAYV, McCarty was co-founder of Eaze, an online platform that connects consumers with dispensaries and delivery services. Working on this project gave McCarty insight into some of the industry’s biggest challenges.

“We learned that there’s a lot of friction in the supply chain,” McCarty told High Times. “When companies become successful they face constraints on supply. There are problems getting product from the brand to the distributor to shops to finally getting products on shelves. It seemed like there were big problems we could solve via technology.”

As a result, McCarty launched WAYV in August 2018. In the company’s first year of operations, it quickly caught on amongst some of California’s biggest cannabis companies. So far, companies like Caliva, Kurvana, High Style Brewing Company, Goldrop, and distributor Sierra Pacific Warehouse Group have already started using WAYV’s tools. In fact, many have already started utilizing the Dynamic Distribution platform.

“Part of a Movement”

For now, Dynamic Distribution will serve only the California market. But McCarty said that all aspects of the software have been designed for scalability. Next up, he says, is Canada, the rest of the United States, and the world.

“This isn’t just about building a technology that gets adopted, it’s about being part of a movement that connects to a lot of other social issues,” McCarty told High Times. “We are extremely passionate about solving the industry’s biggest problems because we believe this is a good thing for the world. We believe that technology plays a big role in this, and we take that responsibility seriously.”

He added: “There’s a lot of passion behind what we’re building. We want the industry to know that we’re here to support them in whatever way we can.”

South Africa’s cannabis Industry expected to be worth $1.7B If legalized

In a country with 29 percent unemployment, South Africa could tap into a lucrative industry that creates desperately-needed jobs and boosts the economy if the government passes legislation.

A legalized cannabis industry in South Africa could be worth more than $1.7 billion annually by 2023, according to the African Cannabis Report, the first detailed report on the legal cannabis industry in Africa.

South Africa would be the second-biggest African market for cannabis and related products such as hemp and oils, according to the research presented by strategic consultancy firm Prohibition Partners.

The same report suggests that Nigeria’s market would be worth $3.7 billion by 2023 if cannabis use is legalized in Africa’s most populous country.

Industrial cannabis creates jobs

In Morocco, where cannabis is illegal but tolerated for personal use, the cannabis industry employs 800,000 people, according to BusinessLive.

Morocco’s marijuana industry is expected to be worth $900 million by 2023.

“With affordable land, low-cost labor and an experienced agricultural workforce, Africa offers enormous opportunity to local startups and foreign companies looking to expand,” according to the Africa Cannabis Report.

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There are 1.25 million cannabis farmers in South Africa, according to World Health Organization estimates. At least 350,000 African cannabis farmers are traditional healers who give the plant to others for its medicinal benefits.

In September 2018 the South African constitutional court ruled that the recreational use of cannabis was no longer a criminal offense

The court gave the government two years from the date of the ruling to bring the country’s cannabis laws in line with the constitution.

The South African government is working towards regulating the cannabis industry to legalize its use and benefit from the job creation, especially in rural areas, according to CityPress.

Authorities in South Africa want to have a framework for the development of the hemp and cannabis sector in place by October.

Tennessee's new tool allows authorities to differentiate hemp from high-THC cannabis

After facing a load of approximately 10,000 cannabis-related cases to process, the state of Tennessee Bureau of Investigation (TBI) has established a two-step system of testing the product for tetrahydrocannabinol (THC) — a cannabis compound that causes intoxication — that takes just minutes.

Any cannabis containing more than 0.3 per cent of THC, which is the legal cut off point for whether the plant is defined as hemp, is considered illegal under federal and state law.

Both medical and adult-use cannabis are prohibited in Tennessee, with those convicted of possession risking a fine of at least $250 and up to a year in jail.

Although the test itself — a simple colour test — takes minutes to complete, clearing the backlog could take months.

“It is the same plant, it is the same species. It looks the same, feels the same and reacts the same to a lot of field color tests,” Mike Lyttle, TBI Assistant Director, Forensic Sciences Division, told WSMV News. “This has been one of the greatest challenges in forensic science over the last couple of years, how do you tell the difference between marijuana and hemp?”

Already overwhelmed with testing cannabis flower, the TBI is also responsible for testing products like vape cartridges, edibles, and “harder” drugs such as methamphetamine and opioids.

Hemp became officially legal on a federal level in the U.S. in December 2018 with the passing of the Hemp Farming Act of 2018. The bill “legalizes industrial hemp that has tetrahydrocannabinol of no more than 0.3 per cent by removing it from Schedule I of the Controlled Substances Act,” and grants hemp producers eligibility for resourced such as USDA research grants and federal crop insurance programs.

The bill has caused confusion in various states such as Texas, where authorities lack the resources to differentiate between hemp and high-THC cannabis — effectively decriminalizing the drug.

New Hampshire House overrides Governor’s veto on home-grown medical cannabis

The New Hampshire House of Representatives voted on Wednesday to overturn Republican Gov. Chris Sununu’s veto of a bill that would allow for the home cultivation of cannabis by medical marijuana patients. The measure, HB 364, will now head to the Senate after the House voted 259 to 120 to override the veto.

Earlier this year, the Senate approved HB 364 by a margin of 14 to 10. Two additional votes will be needed in the Senate to override the veto by the required two-thirds majority. The Senate is expected to vote on the veto on Thursday.

All home cannabis cultivation is currently a felony under New Hampshire law. Under HB 364, registered medical marijuana patients and caregivers would be allowed to possess up to three mature cannabis plants, three immature plants, and 12 seedlings. The bipartisan and bicameral measure was sponsored by Democratic Rep. Renny Cushing and Republican Sen. John Reagan.

In the governor’s veto message, Sununu said that allowing home cultivation of cannabis would put a burden on law enforcement agencies in the state and compromise regulations to prevent the diversion of medical marijuana to the illegal market.

Activists Call on Senate to Follow Suit

Matt Simon, the New England political director for cannabis reform advocacy group the Marijuana Policy Project said in a press release that overriding the governor’s veto of HB 364 will help ensure that medical marijuana patients can access their medicine affordably.

“It’s encouraging to see the House vote so strongly in favor of HB 364. This bill is critical for patients who are successfully using cannabis to stay off opioids, but are unable to afford the high-priced products that are available from dispensaries,” Simon said. “Sadly, 10 senators voted against HB 364 earlier this year, putting the preferences of a few police chiefs ahead of the needs of patients and their families.”

The Marijuana Policy Project noted in its release that two polls have shown that 68 percent of New Hampshire’s residents support legal medical marijuana and that all three states that border New Hampshire have already legalized home cultivation for patients, caregivers, and adults 21 and older.

“Residents of the ‘Live Free or Die’ State overwhelmingly support cannabis policy reforms, so it’s clear that any senator who opposes this simple step forward is incredibly out of touch with their constituents,” he said. “Patients, caregivers, and their advocates will be watching the Senate vote closely and hoping that common sense and compassion will finally prevail.”

New Hampshire legalized the medicinal use of marijuana in 2013. As of the end of last year, more than 7,000 residents had registered as patients in the state program. Currently, patients are only permitted to obtain medicinal cannabis at one of four licensed dispensaries, leading many to say that the cost and travel involved make it difficult to access their medicine.