Last updated: February 2026
Key Takeaways
- Cannabis businesses face significant theft and compliance risks requiring robust asset tracking solutions
- GPS tracking systems enable real-time monitoring of shipments and ensure regulatory compliance with track-and-trace requirements
- Geofencing features provide automatic alerts when assets leave designated locations, protecting high-value inventory
- Cannabis GPS tracking offers cost-effective security alternative to hired security or camera surveillance
- CBD and hemp product expansion creates growing demand for reliable GPS tracking across the industry
Though marijuana has been legalized for medical and recreational use in states across the US since 1996, its federal Schedule 1 status makes the cannabis industry one that relies heavily on physical assets. Since banks are federally prohibited from handling money made from the sale of illegal substances, cannabis businesses rely heavily on cash. Between large quantities of cash and the marijuana crops and products themselves, which are often difficult to insure and transport across state lines, the cannabis industry has historically relied on cannabis GPS tracking systems to keep a close eye on shipments and deliveries.
Why Cannabis GPS Tracking Systems are Beneficial to Your Business
As outlined in an article by Insurance Business America, theft is far from rare in the cannabis industry, so developing a plan for keeping your cannabis business's assets safe and secure is a necessary part of the enterprise. A particular concern you may have is the large number of employees required to grow, cultivate, dry, and package marijuana products, any of whom could leave with valuable product at any time.
The ability to track a bag or vehicle via a cannabis GPS tracking system allows your business to know where its assets are at all times. It further gives the ability to share that information with trusted individuals to ensure that every asset is accounted for no matter how large your business grows.
Features such as geofencing ensure that shipments leave and arrive at locations and facilities in a timely manner, and that if something goes wrong, the right people are immediately notified.
Compliance & GPS Tracking
Another way a cannabis GPS tracking system can be used in the industry is to ensure compliance with complex federal, state, and municipal laws that require cannabis businesses to verify where their product is going and who is taking it there.
Having reports on hand that prove where the marijuana shipments went and what time they arrived can help your company keep up with the complex legal requirements of the industry.
Additionally, in the US, state and federal (FDA) regulations require the implementation of "track and trace" programs, which record each drug's journey from manufacturer to patient. From growers to wholesalers to packagers to distributors, marijuana enterprises must comply with "track and trace" regulations. In most states where marijuana is legal, "track and trace" means some combination of GPS tracking and other security requirements, like serial code tracing.
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Looking Ahead in the Cannabis Industry
As more states continue to legalize marijuana, cannabis businesses’ need for GPS tracking will only grow. A way in which the cannabis industry has already expanded is through the legalization of other hemp products such as CBD, as explained in Good Housekeeping’ Beginner’s Guide to CBD.
CBD products are now shipped to nearly every state in the US and internationally. Like marijuana, CBD is derived from plants that are grown, cultivated, and shipped in large quantities, and if a shipment were to disappear, companies could incur major losses.
Cannabis GPS tracking systems offer an unobtrusive way to monitor employees and third parties without the expense and invasion of privacy that could be caused by hired security or camera surveillance.
Demand for marijuana products shows no signs of slowing, especially as low-THC products like CBD become popular not just for human use, but according to the Preventative Vet, household pets as well. The cannabis industry will have to meet this demand while ensuring the safety of its employees and assets, and GPS tracking is the first step on that journey.
Written by the Hapn Team — Hapn provides full-stack fleet and asset telematics for construction, rental, and field service companies. Learn more →
Frequently Asked Questions
What are the main compliance requirements for cannabis GPS tracking?
Cannabis businesses must comply with federal "track and trace" regulations that require documentation of product movement from manufacturer to patient. GPS tracking systems help meet these requirements by providing real-time location data and automated reports that prove shipment delivery times and locations.
How does geofencing help prevent cannabis product theft?
Geofencing allows cannabis businesses to create virtual boundaries around facilities and job sites. When a GPS-tracked vehicle or asset exits these designated areas, the system sends immediate alerts to management, enabling swift recovery of stolen goods or investigation of unauthorized movement.
Can cannabis businesses use GPS tracking for employee monitoring?
Yes, cannabis businesses can use GPS tracking on company vehicles and equipment during work hours with proper disclosure policies. However, employers must be transparent about what is being tracked and how the data will be used to comply with state privacy laws.
What is the difference between GPS tracking and track-and-trace programs?
Track-and-trace programs are comprehensive regulatory systems that document every stage of cannabis product movement and custody. GPS tracking is one component of these programs, providing real-time location data alongside other security measures like serial code tracing and chain-of-custody documentation.
How does GPS tracking compare to other security methods for high-value cannabis inventory?
GPS tracking is more cost-effective and less invasive than hired security personnel or extensive camera surveillance systems. It provides 24/7 monitoring, immediate alerts, and detailed movement reports while protecting employee privacy better than constant video monitoring.
