By Kary Radestock
Published in the August 2020 mg retailer issue.
Over the past decade, businesses of all types have embraced automation as a way to improve efficiencies, increase productivity, and enhance consistency. However, there is one industry that has been slow to adapt new automation technologies: Cannabis.
From perfectly pre-rolled joints, to inserting carts into boxes, to putting edibles in sealed bags, there are many ways that packaging automation can help cannabis companies lower costs and improve output.
If you are one of the fortunate cannabis companies that is seeing a rapid increase in demand for your products, you are in the category of “that’s a good problem to have.” However, the reality is that to meet this increased demand, you must either hire and train new workers, add a second shift, or implore everyone to work faster.
Make no mistake. Increased demand can put a strain on your existing team, which can cause stress and lead to increased injuries and higher turn-over.
Accordingly, if sales are rising or forecasts are bright, this is a good reason to review options in automation.
In packaging, there are typically three distinct sections: the front of the line (getting products and packaging materials to the line); the middle of the line (getting the products into the package); and the end of the line (getting the packaged products ready for shipping). While automation can help at any of these touch-points, we are focusing on the most labor intensive - and therefore the tightest choke point - getting the products into a package.
Whether you are selling flower or vape cartridges or edibles or anything else, one of the biggest hurdles is getting the product into a certified child-resistant and compliant package. And in the case of products that require labels, such as jars, this presents yet another complicating step that requires human or machine intervention.
Clearly, packaging automation is needed in the cannabis industry. So, what is holding a company back from implementing an automated solution?
Cost.
The cost to purchase a packaging automation system can run from several hundred thousand dollars to several million dollars. And, those machines typically only do one task. If you are selling pre-rolls, vape carts, and edibles, those are three expensive machines you will need at the very least. At that price, the ROI for most companies seems bleak.
But there is an answer. Many packaging design companies are working with vendors and suppliers that already own this equipment, and can provide automated packaging services on call.
In essence, you are renting the equipment instead of purchasing it.
The idea is that “On-Demand Automation” can help businesses scale up quickly and affordably, without having to make a huge capital expenditure on equipment or manpower.
However, if you are a MSO, and since cannabis cannot legally cross state or national lines, it is important to work with a packaging consultant that can create these relationships anywhere in North America.
Working with a packaging professional who has experience in packaging automation will not only help your business scale up, it will also help reduce costs in the long run. These professionals can identify opportunities for improvement in your current packaging programs and offer suggestions on cost savings and increased efficiencies.
Automation is not something to be wary of… it can offer businesses a clear pathway to growth. And while it takes a ton of capital to purchase these systems, with the right people on your team, you can take advantage of the benefits of automation without the financial burden.
PHOTO CREDIT : GREEN BROS