Fast-forward a few years: the majority of companies in the CBD Industry will be using blockchain technology to track and control their supply chains. Blockchain is a decentralized, digital ledger that keeps a permanent, unalterable record of transactions between users. This technology is significantly more secure than other data storage platforms and it enables members of the supply chain to trace every batch of every ingredient and every step of the manufacturing process from seed to shelf. It’s a completely transparent method to track progress in real time, which makes it especially appealing to retail supply chain partners.
Today, the consumer market for CBD is fragmented with literally thousands of players selling their products. The evolving industry does not have a mature enough system of controls in place to meet the large retailers that will eventually dominate the sales of CBD products.
As every retail industry evolves, big-box retailers dominate the sales of that industry’s products. When the large drug store (CVS, Walgreens, Rite Aid), mass merchant (Walmart, Target), grocery (Kroger, Albertson’s, Publix) and eCommerce (Amazon) retailers embrace CBD products in large scale, they will insist on strict upstream supply chain controls. Every bottle and jar of CBD products will require lot numbers that specify the seeds, specific hemp crop, and every step in the processing, formulating, and packaging of each product. It must be fully accurate, transparent and traceable. This type of control system will be significantly safer for an industry whose products are taken orally or absorbed through the skin.
Blockchain technology offers the best and most secure system for tracking and tracing an entire supply chain from seed to shelf. As the industry evolves, GMP certification will not be enough to satisfy the big boxes. In addition, we still don’t know what the FDA and USDA requirements will be down the road.
With the level of sophistication that blockchain technology brings, so does a significant financial and time investment for the companies embarking on the implementation of this technology. In order to secure the supply chain from seed to shelf, each member in the chain must play a role in blockchain technology. The question is whether all seed companies, hemp farmers, processors, and product manufacturers are prepared to invest heavily in this technology in order to be relevant to the retail companies who will ultimately dominate this industry.
Botanical Solutions has committed to being at the leading edge of technology in every possible way as a processor, and our extraction facility and lab clearly demonstrate this commitment. We have also committed to the implementation of blockchain technology. This means we have identified upstream and downstream partners who want to embrace blockchain with us, as one company in the supply chain cannot accomplish this alone.
However, one company can take a leadership role in ensuring that the implementation of this technology is done properly, upstream and downstream in the supply chain. The Botanical Solutions team is proud of the work we are doing in contributing to a safe and transparent supply chain with the highest levels of efficacy.