The cannabis industry has experienced exponential growth over the last few years, and a lot of developments are taking place to ensure its efficient production and distribution. The industry is wide and has become complex due to the heavy government regulations and the constantly changing market dynamics. This requires cannabis companies to have their business management system in line with the industry standards as well as what the company needs.
In other words, a cannabis business will need a system that can comprise all the important departments of an organization, including human resources (HR), finance, accounting, sales & marketing, production, inventory management and cultivation tracking. This is where an enterprise resource planning software or simply an ERP comes into play.
What is a cannabis ERP?
A cannabis ERP is a centralized software that contains information that allows businesses under it to manage their daily activities across departments. A cannabis ERP allows you to incorporate all the necessary apps or modules into your dashboard to enable you to manage your business processes efficiently and optimally.
Choosing the right cannabis ERP software is a significant investment for any company. Many ecommerce companies present themselves as “all-in-one” software solutions. However, the complexity of the cannabis industry requires ERP software that serves the needs of an entire business operation.
As an advanced tool for the management of all components of a business, good ERP software can help users manage their day-to-day tasks, as well as accomplish all administrative issues effectively.
Useful Resources:
Who is cannabis ERP software for?
While ERP software has been traditionally associated with the manufacturing and distribution industries, the software is flexible, hence can be modified to fit into the system. Cannabis ERP software has been developed to suit the complex cannabis business model. A cannabis ERP software gives users a high-level overview of their business, as well as helps them prioritize functions like tracking and tracing of orders, automating tax, and ensuring compliance requirements are met.
It can help organize and centralize operations of a company, which eliminates the need for the elementary system. Cannabis businesses are also able to benefit from the easy access to useful curated data that can help them align their business to market needs by adapting and responding to the regulatory requirements. The software is essential in the day-to-day operations of a business, with the ability to host all the chains within the business model, such as growers, managers, growers, marketers, etc.
A cannabis business using cannabis ERP software can gain a competitive advantage as the centralized platform provided helps gather documented information, create data records, and update operational changes.
Benefits of Cannabis ERP
Financial Management
- Tracks income and expenses
- Manages budget
- Analyzes financial performance
- Provides financial reports
Sales and Customer Service
- Records customer details and sales
- Manages customer relationships
- Keeps track of inventory
- Boosts sales revenue
Inventory Management
- Track stock across multiple locations
- Provides visibility of the supply chain
Cultivation, Processing, and Manufacturing
- Includes Seed-to-Sale functionality
- Monitor crop performance
- Forecasts crop yield
Resource Management
- Manages resources of manufacturing, warehousing, logistics, and retail operations
- Optimizes every facet of your business
Reporting and Business Intelligence
- Integrates data collection and reporting
- Provides insights on plant production, operational efficiency , and financial performance
How to effectively use Cannabis ERP
The good thing about cannabis ERP software is that it can be used to integrate all operations that you need to move your cannabis business to the next level. Some of the software can help you:
- Document daily operations,
- Generate reports,
- Monitor product quality,
- Keep and maintain data on finances,
- Oversee tasks assigned to teams and individuals,
- Update inventory, and
- Guide the compliance requirements, etc.
What to look for in a Cannabis ERP
When choosing a cannabis ERP, you must be looking into what will help you scale your cannabis enterprise. Whether you want to document the plants from seed to scale, submit reports to the regulatory authorities, deal with tax issues, or manage production schedules, you will need an effective cannabis ERP that can work to help in these complex documentation processes.
To effectively organize and centralize your business data, the factors you must consider when looking for a potential cannabis ERP include:
- Access to data and its security- Cannabis industry is a highly regulated industry, and data security is an essential component of a company that aims to grow. It is thus important to have cannabis ERP software that has strong data security credentials.
- User experience- The functionality of a platform is an important component of any cannabis ERP software. The platform must be easy to use and efficient in executing important functions needed for a growing industry.
- Quality customer support- Ensure a cannabis ERP software has excellent customer support and training, for this is how you will be able to grow your business.
- Flexible for expansion- It’s important to have cannabis ERP software that will help you grow your business to the next level. A rigid platform will stifle your business growth.
- Compatibility- You need a cannabis ERP that is compatible with your chosen operating system, e.g., Windows or Mac.
- Cost and return on investment- the cost of the software must be in line with your expected ROI, as this is what will determine the success or failure of your business.
- Credibility- Is your chosen software credible? A cannabis ERP that has been built on a credible platform will give your business better value and growth potential.
Final thoughts
A cannabis ERP is an important component of any successful cannabis business, and making the right move with the decision on whether to use or not and the type to choose is critical for your business. Choosing a powerful cannabis ERP with all the needed tools will help you grow your business while ensuring compliance with the regulators.
Make sure to check out our blog on Productivity Tips for Cannabis Business Owners.
