Enterprise Resource Planning Systems for Cannabis Companies Explained
The continuous surge in the cannabis market is expected to take the industry to the $197 billion mark by 2028. And as the cannabis industry grows, so does the need for developments that maintain efficient cultivation, production, and distribution of cannabis products.
More than that, the cannabis industry is wrought with industry, state, and federal regulations and compliance mandates (cannabis legalization is spreading across the nation, but restrictions on production and distribution are still strictly enforced) among constantly changing market dynamics.
Every cannabis business must incorporate a robust centralized business management system, which is what a traditional Enterprise Resource Planning (ERP) system does. So, what does cannabis ERP do?
Unpacking Traditional ERP
Traditional Enterprise Resource Planning software is developed to integrate business processes across an organization. The primary aim is to make running the business more efficient by attaching several business processes like finance, procurement, supply chain, human resources, and distribution and creating a seamless data flow between said processes.
So traditional businesses have a complete and integrated platform that manages all aspects of their business by tracking every production, financial, and logistics workflow and ensuring transparency within processes and between departments.
Do Cannabis Businesses Really Benefit From an ERP System?
Cannabis ERPs handle the same functions as their general ERP counterparts but are also developed to address the unique challenges and complex requirements of the cannabis industry.
For instance, ensuring data integrity, end-to-end visibility, and accurate reporting determines the survival or loss of a cannabis business.
Additionally, cannabis companies need a software solution that is flexible enough to improve, replace, or change based on the continually evolving cannabis market conditions – like the ever-changing regulatory requirements or customer needs.
Besides, a cannabis ERP allows you to add modules (like automatic tax payment modules) or apps that help you manage your cannabis business optimally. For example, you can host all the major players in your supply chain from seed to sale within your business model using a cannabis ERP system.
In turn, the ERP provides a central location to collect data, monitor product quality, update inventory, create and share records, and update any changes in real time.
But to choose a suitable ERP system for a cannabis business means understanding the features to look for first.
Central Features of Cannabis ERP Software
A cannabis ERP system helps simplify the complex documentation processes in the cannabis industry using the following features:
Data Security and Transparency
Apart from centralizing data to enhance performance, an ERP system should also provide the necessary data security credentials to safeguard the existence of the business and its growth.
Business Integration Capabilities
An ERP system must integrate all business units within an organization to perform its functions optimally. Therefore, confirm that the ERP is compatible with your current system and is flexible enough to integrate with other processes you might add during business expansion.
Cannabis ERP software provides real-time results from business operations throughout the organization. For instance, if an order is made for a cannabis product, the system should check the availability of the product and its distribution schedule while simultaneously conducting a credit check in real time.
Real-time functionalities also help cannabis businesses identify problems within a few seconds, making it easier to rectify and keep the company in compliance.
Consistent User Experience
The ERP vendor needs to maintain a consistent User interface for their software even as they acquire new software updates and releases to keep up with market trends and needs. This ensures a cannabis business reduces its training cost and maintains its productivity. It also provides that the ERP is easy to use and navigate to maintain workflow efficiency.
Excellent Customer Support
You need the proper customer support to help you navigate through updates and changes as you grow your cannabis business. The vendor’s support initiatives also help train your employees once you implement your cannabis ERP. That said, remember to check the credibility of the ERP vendor and the software.
The Benefits of ERP Software
- ERP software eliminates issues like data duplication and enhances collaboration by providing a single source of data for the entire organization.
- The integrated data gives cannabis businesses insights that drive better decision-making processes with business intelligence.
- Financial management becomes seamless with an ERP system since it tracks all income and expenses, provides financial reports, manages the budget, and analyzes the financial performance of the cannabis business.
- Cannabis inventory management also improves with ERP software since it tracks stock across the cannabis supply chain by providing visibility.
- ERP software is also excellent for resource management since it optimizes every aspect of your cannabis business.
Increase business efficiency with CannaSuite
Cannabis ERP vendors help businesses in the industry run their businesses efficiently by saving time and money. One must make the right choice of vendor and software before implementing an ERP solution. This starts with understanding an ERP, its benefits, and the key features to look for when sourcing for one.
CannaSuite is the premier cannabis ERP provider that delivers time-saving efficiency and profit-generating capabilities to your cannabis company’s daily operations.
Running your cannabis business from a single source of truth, all from one intuitive and affordable solution – that’s CannaSuite. Contact us today for a free tour.
What is ERP software?
This is a software solution businesses use to run and manage daily operations like procurement, financial reporting, and human resources for optimal performance.
What is cannabis ERP software?
A cannabis ERP is ERP software specially designed to handle the complexities of the cannabis business industry, like regulatory and tax compliance issues.
What are the benefits of using a cannabis ERP instead of a general ERP?
Primarily, a cannabis ERP saves a business money and time by automating processes and improving communication and collaboration between different departments within the organization.