Before recent legalization of cannabis for medical and recreational use, homegrown producers were reluctant to employ business management systems to track their manufacturing operations. Now with states approving medicinal use of marijuana and marijuana extracts, an emerging cannabis industry has sought out Enterprise Resource Planning (ERP) software to legitimize and streamline their growing operations. As profits and regulations continue to rise, companies realize the importance of adopting best practices and tools already commonplace throughout the cannabis, nutraceutical and process manufacturing industries to remain competitive in the marketplace.
First and foremost, it is important to realize that your cannabis industry experiences many of the same business challenges as other nutraceutical processing businesses. To this end, a cannabis industry specific ERP employs the same technology tools as other process manufacturers, seamlessly integrating processing, inventory and financial data to successfully manage and grow the business. Specific tools within an ERP solution are especially applicable to this unique industry, including the following:
Traceability for Regulatory Compliance
An ERP solution provides clear insight into all aspects of operations to help your company adhere to government, legal and tax regulations. This includes complete lot traceability with functionality to easily automate lot tag tracking from seed to sale. Tracking THC levels and other vital statistics allows your company to operate within state regulatory requirements. In addition, the challenge of compliance for both single-state and multi-state operators is readily handled through the ERP solution.
Critical to a cannabis manufacturer’s success is maintaining inventory control at each phase of the operation including cultivation and testing, processing, destruction of waste, transportation and dispensing. An ERP solution helps manage and monitor plants and products from seed to sale with lot tracking and quality control features designed to provide a consistent product to consumers. Accurate, real-time tracking and identification of the plants and terpenes are available within the ERP system. Accounting for cannabis shelf life, an ERP enables processors to forecast demand and make smart, timely purchasing and production decisions that meet demand and eliminate waste associated with overstocking. The inventory efficiencies of an ERP enables costs to remain manageable while living up to consumer’s expectations for quality and consistency.
Research & Development
The marijuana industry and consumer tastes are ever-changing; it is important to have a solution that enables the testing of new technologies, chemicals and cultivars (strains) to remain competitive. Utilizing an ERP system that can facilitate and document research and development enables companies to keep up with changing demands of consumers and government regulations. An ERP solution allows for product development within the system, without interfering with your current production, and leverages existing cost and product history to aid in developing and testing new extractions and concentrates.
Reporting for Innovation and Growth
With an integrated ERP solution in place, cannabis manufacturers are more readily able to focus on growth and expansion. It is vital to invest in a solution that not only meets your business needs today but addresses your growth and evolution over the coming years. Forecasting, interactive reporting, dashboards and analysis tools of an ERP provide real-time visibility into the data collected throughout your operation. This is especially important if your organization is in its startup stage. It’s likely you’re facing demands and questions from investors regarding financial data and forecasts – answers you will easily find in the right ERP solution for your cannabis business.
ProcessPro’s comprehensive and scalable ERP solution is designed to manage all aspects of your cannabusiness. Contact us today to learn how an ERP solution can enable you to increase profits and grow your business with more control. With over 30 years of experience in process manufacturing industries, including food and beverage, chemical, pharmaceutical, nutraceutical, cosmetic and cannabis, our team of experts is ready to help you on your ERP journey with a free personalized demo.