A major opportunity is arising in Food, Pharma, and Cannabis logistics, due to a need for real-time traceability of supply chains.
There is a dire need to streamline operations in food, pharma, and cannabis. 23% of the world’s annual food production is lost due to poor logistics, food safety, and lack of training. Over 65% of the cannabis industry still relies on paper or non-universal barcoded recording. Current logistics solutions are challenging to implement, due to poor software compatibility and high integration costs—These industries desperately need innovation.
TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) is an AI, Blockchain, IoT, Coldchain tracking and logistics company providing real-time solutions for the food, pharma, and cannabis industries. By tackling each of these sectors, TrackLoop aims to be an industry leader through providing a low-cost platform with seamless integration. The company is the only end-to-end integrated API, with up to 70% reduction in integration cost and lowest operational down-time.
TrackLoop is providing one of the first fully integrated Supply Chain Mapping (SCM) platforms for these emerging industries in need of innovation. TrackLoop’s turnkey, real-time tracking solutions offer the very latest in IoT and AI, providing valuable data and business intelligence to some of the world’s leading brands.
Approximately 40% of the world’s annual food production is lost due to poor logistics, food safety, and lack of training,1 fueling immediate demand for “regulated” real-time traceability along the food, bio-pharma and cannabis supply chains. In the case of Cannabis, a large portion of the industry (growers, processors, logistics) still relies on paper or non-universal barcoded recording.
In the developed world, a full 30% of all perishable produce and products never make it all the way from the farm to the table.2 The result is a crushing case of waste, while creating an opportunity to apply high tech to improve upon streamlining transportation to growing populations and areas where food insecurity runs high.
With all the bull runs in the Cannabis space in the past 12 months, we’re seeing just how big this sector is becoming, and new sectors are popping up around it, TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) is brand new to the public market, and hasn’t had a bull run yet, placing it perfectly at the moment to take advantage of all the market hype surrounding the Cannabis sector, not to mention the fact that they are very unique in their sector (See more below)
Food waste is incredibly costly, with producers and retailers wanting to reduce their losses as much as possible. Food waste in the United States alone represents $218 billion in losses, with $18.2 billion lost by grocery retailers in wasted retail space.3
Major cannabis giants have already grumbled about supply chain issues prior to legalization of recreational marijuana. Current production levels of all the licensed producers combined are projected to meet only 30-60% of total demand.4
One method used to protect against losses across multiple biomass markets (food, cannabis, medications) is cold chain management—namely, temperature controlled production, storage and distribution activities.
This is maintained globally, through cold chain logistics, of which demand is on the rise. Refrigerated boxes make up 7% of total container volumes, but over the past five years demand increased by 5% to 6% annually, compared with 2-3% for regular containers that move almost all of the world’s manufactured goods.5
As these demands grow, so too does the overall value of cold chain logistics. The global cold chain market is projected to be worth more than $450 billion by 2025.6
In order to monitor operations from seed to consumer, requires a complex network of monitored data, and real-time tracking. Backed by a team of senior executives and engineers with extensive experience in data analytics, supply chain management, AI, and IoT, TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) is capable of successfully integrating disruptive technology into the operations of producers and distributors of all sizes. The team possesses a deep understanding of local, national, and global markets and hands-on experience with digital assets for processing and logistics.
With the explosive emergence of new legal cannabis markets, there is a growing demand for “regulated” real-time traceability in cannabis supply chain, as with the supply chains for food and bio-pharma.
The cannabis sector is unique, in its shocking reliance upon paper or non-universal barcoded recording, which lacks traceability and proper control along the supply chain. An estimated 65% of cannabis operators are still using antiquated logistics strategies.
This gap is especially alarming, given that within the cannabis supply chain, the processing and logistics nodes are the most critical in terms of security and traceability.
Which is where innovators such as TrackLoop are direly needed. Many current options for enterprise resource planning (ERP) and internet of things (IoT) multi-platform integration make real-time tracking difficult and highly expensive—reaching up to a $500,000 multi-year increment cost.
TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) is presenting a platform that involves IoT and Supply Chain Mapping (SCM) that enables processors to more effectively buy and sell equipment, improve their production cycle, and ship to retailers. For logistics companies, IoT and SCM enable delivery verification and cold chain tracking, and improved pickup and drop off transactions
Among its peers, TrackLoop presents a rare opportunity, in that many of the companies jostling for position in this space remain privately held.
Among the competitive landscape of its peers,TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) stands out for its ability to provide real-time mapping, low-cost setup and operation, IoT-powered, Blockchain-driven, predictive maintenance (AI), cold chain solutions, with hardware capability, and the lowest integration times.
However, the market is not ignoring the potential in these fields, with a flurry of recent financings for private companies, including a whopping $243 million for C3IoT which deals in sensors tracking and AI software logistics.
FEATURE COMPANY: FOR COMPARISON
TrackLoop Analytics Corp.
TrackLoop Analytics is providing one of the first fully integrated Supply Chain Management (SCM) platforms for the emerging Cannabis, Food & Pharma logistics industry. TL’s turnkey real-time tracking solutions offer the very latest in IoT and AI, providing valuable data and business intelligence to some of world’s leading brands.
Part of the difficulty of finding comparables for a unique opportunity like TrackLoop, is in the fact that much of the emerging companies in the space are private. However, since the logistics sector is so large, it’s not surprising that many of the companies involved have grown to be quite large.
Supply Chain, Logistics, IoT, and AI Comparables: TRACKLOOP Uniquely Combines ALL THREE
XPO Logistics, Inc.
Market Cap: $12.942 billion
XPO provides logistics services (as well as transportation) in North America, Europe, Asia, and internationally. Its Logistics segment offers a range of contract logistics services, including engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory management solutions; and performs e-commerce fulfillment, order personalization, warehousing, reverse logistics, storage, factory support, aftermarket support, manufacturing, distribution, packaging, and labeling, as well as supply chain optimization services, such as production flow management. The company offers its services to customers in various industries, such as retail, e-commerce, food and beverage, manufacturing, technology and telecommunications, aerospace and defense, life sciences, healthcare, medical equipment, and agriculture.
United Parcel Service, Inc.
Market Cap: $99.241 billion
Beyond providing letter and package delivery, UPS also provides logistics, and financial services. The company also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. It operates a fleet of approximately 119,000 package cars, vans, tractors, and motorcycles; and owns 45,000 containers that are used to transport cargo in its aircraft. UPS is ramping up its focus on global logistics, recently announcing a massive expansion to its UPS My Choice Service.
International Business Machines Corporation
Market Cap: $129.084 billion
IBM recently announced growing adoption of its food supply chain network, IBM Food Trust. The blockchain-based cloud network offers participating retailers, suppliers, growers and food industry providers with data from across the food ecosystem to enable greater traceability, transparency and efficiency. The ecosystem of network participants continues to grow. Recently, leading global retailer Carrefour announced it will use the IBM Food Trust’s blockchain network to strengthen their food excellence actions.
TAKING ADVANTAGE OF A TIMELY AND UNIQUE STRATEGY
Already, TrackLoop (CSE: TOOL) has been able to cultivate relationships with several organizations large and small. Within the food sector, TrackLoop has successfully aligned itself for cold chain tracking with major grocery retailers such as SaveOn Foods and Walmart, as well as independent distributors Food-X and Spud.ca.
Where TrackLoop has also helped is with major organizations such as Canadian Blood Services and BC Ferries with IoT based cold chain management.
Where TrackLoop is designed to truly succeed is in the cannabis market. Beginning with an initial focus on three jurisdictions in particular (Canada, USA, EU), the company is targeting major potential. The company estimates each jurisdiction to be capable of yielding 10,000 producers and 13,000 distributors—each at $25,000 ARR per enterprise.
The company assumes its initial penetration rate of IoT-based track and trace software to be 2% by 2021. Already, TrackLoop has secured an early partnership with one cannabis licensed producer (LP), and 3-5 top ERPs.
The strategy is to leverage recreational early market penetration, leading to specializing in medical marijuana markets later. The company has already performed its initial traction and testing with pharma and food processors.
UTILIZING INNOVATION THROUGH IoT+API+Blockchain+Coldchain
Seeking a significant competitive advantage through tech innovation, TrackLoop is the first Supply Chain Mapping (SCM) platform dedicated to the cannabis industry and powered by IoT+API+Blockchain+Coldchain.
What sets TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) ahead of its competitors in the space are a pair of differentiators. It is one of the only fully vertically integrated, end-to-end platform solutions on the market for clients today. The company brings its own hardware/software expertise, which has been built, and is exclusively owned by TrackLoop, for real-time cold chain tracking.
Where TrackLoop excels is in its ability to visualize, trace, and map the entire cannabis logistics and fleet management in real-time. The company can seamlessly integrate its platform at a much lower cost than its competitors, all while reducing down-time by up to 90%.
TrackLoop’s platform also benefits its clients by streamlining key operating conditions along the supply chain at 30% of the industry standard cost, and 20% of the time compared to the current control systems.
The main product offered by TrackLoop is ChainTrack, which features numerous integration modules, including:
- Fleet Management
- Work Scheduling and Dispatching
- Compliance and Regulations
TrackLoop’s platform presents a significant industry advantage through its cold-chain tracking system specialized for cannabis. The platform utilizes cutting-edge IoT technology delivered through the web and mobile entry points. The user is given real-time monitoring of temperature, location, door opening, lab data, and scheduling. Companies can oversee power performance, and execute predictive maintenance with the data it receives through TrackLoop’s logistic management tools. The data is easily integrated using API, and transferred to the user through event-based notifications via SMS or email, combined with an alarm management system.
By using Blockchain technology, TrackLoop offers its users a trusted data ledger, with automated, real-time tracking and tracing. By decentralizing the barcode system, TrackLoop’s users can seamlessly integrate their inventory with a setup cost much lower than competitors, all while meeting regulatory requirements.
WHO IS THE TRACKLOOP USER?
Growers: Buy supplies and equipment; during harvesting; post harvesting; packing; shipping; and monitoring lab samples.
Dispensaries: Delivery verification; inventory management; entry control; sales.
Processors: Buy supplies and equipment; production cycle; lab ID received; shipping to retails.
Logistics: Delivery verification; pick up; cold chain tracking; drop off.
Lab Testing: Non-GMO; organic; indica
TrackLoop’s revenue model is based on a pay-per-module strategy, with modules that include:
- Fleet Management
- Work Scheduling & dispatching
- Compliance and regulation
At the moment, the company’s current advantage comes from immediate revenue being generated from its Cold Chain tracking module. Their prices are quite reasonable, starting at $1,500 per year, per device, per module (up to a maximum of $12,000 per year). TrackLoop receives revenue from its hardware (in-house and off-the-shelf gadgets at 45% margin). Customers can request customization and integration with on-site services.
TrackLoop’s proposed revenue streams come from Set-Up Fees, Hardware, Monthly Subscribers, and Service Contracts:
Set-up Fees: Initial hardware installation; Integration; Ongoing support.
Hardware: Data logger hardware; Sensors; Cellulars.
Monthly Subscriptions: Billed annually; Pay-per-module; Includes extended hardware warranty.
Service Contracts: End-to-end full integration; Software/hardware; Ongoing dedicated support.
What TrackLoop does for its clients:
- Optimize savings by understanding patterns of utilization
- Spot trends and competitive responses with other units
- Create secured ledgers including transactions, locations, alarm settings and more
- Take care of potential maintenance issues as soon as possible
- Increase the safety of your drivers and your products
- Receive notifications of real-time vulnerabilities and disruptions
- See suggestions for replacements to dodge expensive repercussions
- Customize your system configuration and dashboard
Summary: TRACKLOOP Seizing Upon CANNABIS LOGISTICS Niche in Explosive New Market
- Targeting the $250 billion food logistics market with an end-to-end real-time monitoring solution.
- Disrupting the massively underserved $6 billion cannabis logistics market in the USA, Canada, and EU.
- Competitive advantage through strong barriers to entry for new players.
- Strategic focus on the urban delivery market, already attracting major players such as Canadian Blood Services, SPUD and BYD and multiple commercial agreements.
- One of the few publicly traded end-to-end supply chain tracking companies.
- The only end-to-end integrated API, with up to 70% reduction in integration cost and lowest operational down-time.
- Proven revenue traction and customer validation from Fortune 100 companies.
We believe that TrackLoop Analytics (CSE: TOOL – OTC: TLOOF) has wisely chosen a strategy to provide state-of-the-art logistics and Supply Chain Management (SCM) through Blockchain ledgers and cold chain tracking modules. Logistics are evolving again, and TrackLoop is at the forefront of that evolution.
Timing is everything, and by leading the way for the emerging cannabis industry that requires organization and streamlining, TrackLoop is onto something big. By targeting food, pharma, and cannabis monitoring, the company is targeting a $500 billion opportunity.
By using cutting-edge artificial intelligence (AI) and internet of things (IoT) technology through proprietary hardware and software, and a Supply Chain Monitoring platform powered by IoT and Blockchain, TrackLoop is poised to capture a large segment of a massively overlooked portion of three major sectors.
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