Business leaders in the cannabis industry know that the keys to success and profitability are strategic planning and adaptability. In a market where regulations are subject to change and the demands of consumers are constantly fluctuating, cannabis businesses need the ability to evolve with the market.
Business solutions like Enterprise Resource Planning (ERP) software help ensure that cannabis businesses can do this effectively, giving management teams and owner/operators the ability to measure the status of their operations accurately and identify the opportunities for improvement. Optimizing business operations means increased profitability, something every cannabis business is focused on moving forward to make the most of a booming industry.
Cannabis ERP software is a business solution tailored to the needs of the cannabis industry that centralizes disparate operational systems into one integrated management solution. This typically includes human resource systems, inventory management, processing/manufacturing, finances, and business administration.
By offering specialized functionality to help meet the needs of cannabis businesses, cultivators and processors benefit from the Cultivation Management System (CMS) features that provide advanced operational information and managerial control over greenhouses and processing facilities.
Cannabis ERP solutions directly improve supply chain management, providing managers with several key capabilities that optimize supply chain operations while helping ensure regulatory compliance.
That’s right! Optimization can happen alongside compliance– here’s how:
Effective inventory management is critical to supply chain optimization and regulatory compliance. Cannabis ERP systems provide real-time inventory data, making product procurement activities more effective.
For dispensaries, maintaining a balance between having enough of a particular product available for consumers and having too much of a product that loses value over time can be challenging. With advanced inventory data, cannabis dispensaries can more accurately predict the quantity of product needed to meet consumer demands while ensuring product quality.
Because cannabis ERP integrates more and more inventory and sales data over time, those predictive processes become more accurate. Cannabis operators now have a highly functional dashboard with intuitive informational reporting, making it easier for stakeholders to interpret critical data accurately.
The advanced inventory options provided by cannabis ERP systems also have implications for regulatory compliance, providing clear information to meet IRC § 280E and IRC § 471 requirements.
Cannabis ERP supply chain management systems use RFID tags to ensure seed-to-sale tracking. Not only is cannabis tracking required by law, but it also makes things easier for dispensaries, cultivators, and processors alike.
Cannabis ERP solutions scan RFID tags associated with individual plants/products, automatically entering detailed information into the inventory system and perform product tracking by various metrics, such as by strain, supplier, product type, etc. Product recalls can occur efficiently and effectively, ensuring the safety of the community the cannabis business serves.
Governmental System Integration – Regular reporting is part of maintaining regulatory compliance and includes reporting supply chain information. Many cannabis ERP systems offer enhanced integration with governmental reporting software, like METRC, facilitating the reporting process. This ensures that regulatory deadlines are met, and that associated agencies receive accurate information about the supply chain processes. Less work and effort are needed to ensure seamless and accurate reporting.
Cultivation Optimization – Cannabis ERP solutions for cultivators provide enhanced growing environment information and control that can be used to optimize cultivation operations. AI systems monitor environmental data and plant health and quickly respond to issues that might damage crops. With this information automatically integrated into the ERP system, cultivators can promptly establish biological metrics to analyze the state of operations and optimize facilities accurately.
Analytics – Comprehensive cannabis ERP solutions provide the opportunity for advanced business analytics, allowing business owners to make more effective strategic decisions. Intuitive dashboards make establishing metrics easy and offer highly customizable analytic dimensions.
Cannabis businesses like yours face significant challenges competing in a market that is quickly integrating technological innovations from other sectors. Comprehensive cannabis ERP software solutions provide the managerial capabilities necessary to optimize your supply chain operations so you can respond and scale as you navigate new opportunities and evolving threats.
Contact our team of cannabis experts to discuss how we can help you strengthen your supply chain with industry-tested Cannabis ERP.