- DMG Inc. has announced a new venture to develop SCM solutions for the marijuana industry.
- The marijuana industry in Canada is worth about $23 billion.
- Marijuana recently got legal in Canada for recreational purposes.
On the 17th of October 2018, Canada officially legalized the use and sale of marijuana nationwide after only allowing the use for medical reasons.
The decision was praised worldwide and also marks the beginning of a new industry that will likely grow significantly over the next few years. It seems a new blockchain-based business is looking to not only cash in on this new development but also to help improve the supply chain system of marijuana.
DMG Blockchain Solutions Inc. (DMG) has announced that it will be developing a supply chain platform for marijuana and is already in talks with industry players.
There is certainly a market for their services, as there are already 120 cannabis producers in Canada and many of them have already expressed that there is a shortage of labor and a number of supply chain issues.
Coupled with the fact that the legalization of marijuana will likely lead to a surge in demand, many businesses could find themselves in a difficult position.
DMG Blockchain Solutions
This is where DMG comes in. They are speaking with a number of players in the cannabis industry such as producers, labs, and retailers about creating a supply chain platform that can meet their needs.
This platform will, of course, be in line with current Canadian marijuana laws. The platform will also enable users to recall products, bring in new participants and so on.
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice,” said DMG’s CEO Dan Reitzik, who also stated that supply chain management is the next logical step in the use of blockchain technology.
A New Market
New markets emerge every day, but the emergence of marijuana sale is a particularly interesting one because it is gaining new ground, particularly in the west and many predict that it will be legal the world over in a few years.
There is, therefore huge supply chain management potential in legal marijuana. It is already a $23 billion industry in Canada and will likely only grow more.