Worth around $61 billion today, the U.S. cannabis industry exceeds analyst predictions and expectations every year. What does that say about the year 2030 when according to Business Insider, the U.S. cannabis industry is projected to be worth $100 billion?
Because the consumer market for legal cannabis has never been greater, businesses hoping to meet the demands of a rapidly expanding customer base need the right tools and expertise for the job.
With the future of the cannabis industry looking so bright, Enterprise Resource Planning (ERP) software is an essential part of every cannabis business’s managerial toolkit. ERP systems streamline company activities by integrating core processes and tracking raw resources, continuously updating information into a highly functional common database.
Looking Ahead: Following increased cannabis legalization and record sales in 2020, industry experts predict the market will grow to an impressive $41.5 billion by 2025 – a compound annual growth rate of 21% from 2019.
With a cannabis-specific ERP software solution, operators can fully consolidate all aspects of their daily operations into one accessible system. From supply-chain to sales, operators get unparalleled insight and strategic control of all major business processes.
Benefits of ERP for Cannabis Businesses
As a cannabis business implementing an industry ERP software solution, you have plenty of options. Cannabis ERP solutions are highly specialized, explicitly designed to provide the unique functional capabilities from which cultivators, processors, and dispensaries will benefit most.
Pro-tip: Cloud-based cannabis ERP solutions eliminate the need for expensive dedicated hardware stored on-site. Cloud solutions also provide enhanced remote capabilities, ensuring business can happen anytime and anywhere.
You’ll be working with a solution provider to determine your individual business needs, but some of your ERP’s benefits include:
Accurate Seed-to-Sale Tracking – ERP solutions for cannabis businesses provide enhanced RFID tracking through mobile applications and automated databases. Via these tag tracking applications, cannabis ERP systems accumulate vital inventory data, providing significant analytical value through the opportunity for multidimensional metric analyses.
Customizable Managerial Dashboards – ERP software utilizes intuitive managerial dashboard applications to provide real-time visibility into business processes, offering straightforward graphs, charts, and reports. This facilitates strategic planning, giving cannabis businesses the ability to identify areas for improvement and make cost-effective decisions effectively. The functionality and insight provided by cannabis ERP dashboards allow marijuana companies to unleash their full potential and successfully grow in a rapidly expanding market.
E-commerce – ERP solutions integrate with Point of Sale (PoS) technologies to provide businesses with remote and ecommerce cannabis sales opportunities. Particularly useful during economic shutdowns in 2020, ERP can help ensure that a business stays operational even when physical storefronts are closed. Customers can access secure digital PoS interfaces to place orders, communicate with businesses, and compare products, all without the need for hourly budtenders. This feature is likely the single most influential factor contributing to a record 71% increase in annual cannabis sales during 2020.
METRC Integration – Regulatory compliance is the most critical issue for cannabis businesses, which face stiff fines and possible criminal penalties for violations. While specific regulations vary from state to state, routine reporting is always part of the process. The majority of cannabis regulatory entities utilize METRC systems, a software solution designed to meet the needs of regulators. Cannabis operators must report business information into these systems, which can be a time-consuming and error-prone activity when performed manually. Through integration with METRC reporting software, ERP solutions dramatically reduce the burden on business owners while simultaneously ensuring the accuracy of reports.
Integrated AI – According to Stephen Boals of Accounting Today, “Artificial intelligence is real and helping leading-edge companies gain an advantage in the market through improved automation, enhanced decision-making, and improved productivity,” he said. “Whether it’s a simple algorithm that enhances reporting, a cloud-based AP automation suite, or an ERP module your accounting department can leverage, AI point solutions are available and built to solve specific business problems.”
AI and robotics help grow complex cannabis cultivation companies by optimizing the production process is a key factor for successful operations.
Real Growth Solutions
Gartner predicts 69% of tasks done by managers will be fully automated by 2024. To successfully take advantage of the compounding growth in the cannabis market, cannabis business owners like you need the right tools to take the pulse of current operations and identify critical areas for improvement.
With multidimensional key metric analyses, automated inventory tracking, and proactive compliance reporting, ERP solutions help cannabis businesses increase the efficiency of all operational activities and maximize their growth opportunities. In the end, you get incredible visibility into business processes that make identifying these opportunities straightforward and effective.
