What are the Benefits and Limitations of Cannabis ERP?

The cannabis industry is growing, and consequently, so are cannabis businesses– but scaling any business is challenging. That’s why more cannabis companies adopt an enterprise resource planning (ERP) solution to help manage all the complexities.


But not just any ERP– a cannabis-specific ERP answers the call because it specializes in cannabis processes with features unique to cannabis businesses. The tracking and reporting capabilities alone are more comprehensive than traditional ERP software to ensure that cannabis regulatory compliance mandates are followed.


But cannabis ERP software has its share of limitations amid its many benefits. Here is a list of both the benefits and constraints once you implement a cannabis ERP system.


Benefits of Cannabis ERP

  1. Gain Intelligent Decision-Making Capabilities

A cannabis ERP provides cannabis businesses with a centralized management system that connects the front and back-end processes. This makes business workflows easier to handle since the centralized management system acts as a single source of truth.


By working with an ERP system with a unified approach, you gain end-to-end visibility into your workflows, meaning you can see everything happening within your organization from one place.


Dive deeper: When Should You Consider a Cannabis ERP Solution?


This also means that the data analysis and reporting you gather from the ERP system will be wrought with intelligence and intuition you can use to make intelligent decisions. Therefore, you not only make decisions faster, but you also make decisions that can drive business change and growth.


  1. Increase Your Profit Margin and Reduce Expenses

The cannabis ERP will streamline your business operations by centralizing operations and information. That is, communication between departments like finance and sales becomes smooth and fast, increasing the efficiency and productivity with which you operate.


Additionally, intelligent data allows decision-makers to identify areas where waste is present and eliminate it efficiently. Automation and artificial intelligence capabilities significantly reduce human errors and increase the consistency with which you produce quality products and services.


And as your product quality and turnarounds increase, you boost your bottom line. Automation also reduces manual labor, which reduces expenses.


  1. Enhance Your Security and Control Capacity

The cannabis industry operates under stringent compliance and regulatory requirements. Therefore, a software solution with vigorous compliance and security protections are required. This is where cannabis ERPs come in.


Since these systems specialize in the industry, they are designed to offer very high-stake regulations and security capabilities that handle the complexities of the cannabis industry. But a word of caution – be vigilant with the ERP vendor you choose.


While some cannabis ERPs meet these security standards, some might not securely meet the standards you want for your business.


Questions to ask: Does your technology vendor understand the Banking Dilemma for Cannabis Businesses?



  1. Optimize, Sustain, and Expand Your Business

Cannabis ERPs can trace the entire seed-to-sale process of your cannabis business. Meaning you can track your products and plants throughout cultivation, forecast your seasonal yield, and measure your product quality and performance continuously.


This streamlined process enhances the optimization of your business workflows. And as you gain control of your seed-to-sale process, get 360-degree insight into your performance, and improve your financial accuracy, you gain the agility to react to the changing cannabis markets fast. Therefore, you gain a competitive advantage and sustainability.


The Limitations of Cannabis ERP

  1. Cannabis ERP Implementation Takes Time

The process of implementing a cannabis ERP is not just challenging; it is equally time-consuming. You must have all departments working together to ensure the adoption of the entire system goes smoothly. Additionally, you must customize the ERP software to match your unique business needs.


Customization to an ERP can get complex. You need a specialist to assist you through the customization procedure. In some dire cases, customization of the ERP system brings about complications that require more adjustments, which only increases the period of implementation and adoption.


That said, once you incorporate a cannabis ERP system, expect it to take several months before the complete installation is done. The period gets longer if you have other departments or groups working off-site.


  1. ERP Implementation is Resource-Intensive

Because of the complexity of implementing a cannabis ERP, you need expertise or a project manager to ensure everything runs smoothly. Hiring the expert is an added cost to an already expensive software solution. Also, since the implementation process takes time, it can interfere with the entire organization’s productivity.


Learn more: Here are Some Ways You Can Save on Your Cannabis ERP Implementation Costs



Lost productivity has an impact on your bottom line. In rare cases, cannabis businesses can implement a cannabis ERP system only to realize that it doesn’t fit their business model. Purchasing software that offers no ROI is a loss for any business.


The Cannabis Industry is Routed in Change

The cannabis industry faces shifting regulations amidst growing demand for cannabis products. Cannabis companies must adopt capabilities that keep their cannabis business agile and flexible enough to meet market demands. You need the right cannabis ERP to help you build a sustainable cannabis business.





What is a cannabis ERP?

Cannabis enterprise resource planning (ERP) software helps cannabis businesses manage the workflows from seed to sale properly and efficiently.


What are the benefits of a cannabis ERP?

Cannabis ERP offers a centralized management system for cannabis businesses to run operations, which gives them a single source of data that enhances employee collaboration, business growth, sustainability, and profit margins. Automation also reduces labor costs.


What are the limitations of a cannabis ERP?

Apart from being an expensive software solution to purchase for SMEs, the cannabis ERP can take a long time to implement and use. This time delays productivity which affects the company’s bottom line.


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