How ERP Helps Manage Regulatory Compliance

Many of the challenges and complexities faced by operators in the cannabis industry originate from traceability and compliance requirements. Evolving state and local regulations demand complete transparency and seed-to-sale traceability from the actual seed to and through cultivators, manufacturers, processors, and dispensaries to the cannabis consumer.

Considering the vast supply chain a cannabis product travels through, the call for efficient tracking and effecting reporting systems to meet regulatory compliance has never been greater. Many stand-alone applications satisfy the needs of one process or one category of cannabis logistics, but is the resulting chaos of multiple disconnected systems that don’t communicate with each other really worth it?

That’s why growing cannabis companies who prioritize compliance turn to a business management solution that integrates every aspect of their operation into an intuitive user interface for a single source of truth. From human resources, accounting, inventory, point of sale management, ordering/receiving, and more, enterprise resource planning (ERP) software solutions provide an all-in-one management system to meet the needs of cannabis business operators.

What is Cannabis ERP?

Cannabis ERP software refers to the industry-specific solution that integrates all cannabis operator processes, from cultivators growing inventory to manufacturer recipes, formulation, and production, to sales of safe and quality products.

Perhaps more importantly, cannabis ERP serves as a comprehensive compliance and traceability solution to meet strict regulations. These stringent controls are the driving force behind adopting a secure system that monitors the growth, production, and distribution of cannabis products. With all the necessary tools in place in one platform, operators get efficient and accurate data integration for deeper operational analytics, seed-to-sale tracking, regulatory reporting compliance, and effective inventory management.

Cannabis ERP is Regulatory Compliance Management

While the coronavirus pandemic has directly resulted in economic losses so severe that many traditional companies may never fully recover, 2020 saw a 71% increase in cannabis sales across the U.S according to Leafly.

With dramatic industry growth enticing more cannabis entrepreneurs to start their own business, more investors helping existing operations continue to grow, cannabis ERP solutions remain at the forefront of industry discourse amid the pandemic. From cultivators to dispensaries, industry stakeholders turn to ERP solutions to streamline business operations and ensure best practices for maintaining essential regulatory requirement compliance.

Maintaining compliance with state regulations is arguably the most critical operational need of a cannabis business, with violations ranging from fines to crippling long-term consequences. In this case, revenue loss from fines is the best-case scenario. Some infractions can result in a loss of business licenses, irreparable damage to brand reputation, or even criminal penalties for the worst offenders.

A cannabis ERP solution aims to provide a reliable business and data management system from an easy-to-use, intuitive user interface that performs a business’s essential operations. Implementing integration with local government reporting systems like METRC is a critical function in a comprehensive ERP software solution, increasing the reliability of information by reducing the risk of data loss/corruption resulting from manual workarounds.

Cannabis laws passed on state and local levels mean regulatory requirements often vary from location to location and remain subject to sudden legislative changes. With so many jurisdictional differences, critical real-time cannabis business data delivers effective, compliant, and timely reports that adhere to rules, regulations, and statutes in place virtually everywhere.

Cannabis ERP is Consumer Safety

Consumer safety is an essential function of cannabis operational regulations. As with the food and beverage industry, cannabis is a product whose ultimate purpose is ingestion by the consumer. Tainted or unsafe products can result in dangerous health risks, so cannabis operations need the ability to track product developments in real-time to respond quickly and effectively.

Product recalls and quick identification of cross-contamination risks minimize the danger to consumers, but these measures are only possible with accurate and thorough data management. Industry-specific seed-to-sale ERP software solutions help meet the needs that ingestible product manufacturing requires to operate safely. These regulations and guidelines are established through local ordinances, and compliance is enforced through random official inspections and audits.

Local reporting requirements for inventory management and business operations are also critical for an effective cannabis ERP solution. Local governments require regular business documentation, with detailed reporting on the complete chain of custody for cannabis product manufacturing, storage, and sales.

ERP software solutions make it easier for owners, operators, and managers to trace product shipments from manufacturers and cultivators and provide real-time inventory data for dispensaries that cross-reference point of sale product distribution. This not only ensures accurate record-keeping from seed-to-sale, streamlines audit processes, and maintains compliance, but it also keeps the cannabis customer safe.

Cannabis ERP is Growth

Cannabis ERP helps operators cut costs, improve record-keeping, and maintain compliance. But with real-time comprehensive business data comes valuable operational analytics to effectively project and plan for future trends, ensuring a cannabusiness is ready to meet consumer demand while maximizing growth and maintaining regulatory compliance.

Ready to Grow? Start preparing for your Cannabis ERP project

Your business’s ERP solution should be specific to your needs and flexible enough to quickly adapt to any regulatory or logistical changes. Standardized operations with cannabis ERP software provide cannabis businesses with streamlined routines, allowing the cannabis operators to focus on what really matters: high-quality cannabis products delivered safely and efficiently.

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