cbdMD is the publicly traded leader in the hemp-extracted wellness category. The company produces a wide range of CBD products, including gummies, capsules, oil tinctures and more, and sells them directly to consumers through its top-tier eCommerce site.
After recently going live on Oracle NetSuite, cbdMD learned that Oracle would no longer support companies in the CBD market space, forcing cbdMD’s management team to quickly pivot and begin the search for a new ERP solution and consulting partner.
The Challenge
Prior to deciding to switch from NetSuite, cbdMD was utilizing disparate applications to monitor its sales activity, commissions and profitability. As a result, the company’s business leaders were forced to check two systems to get a full understanding of the organization’s health. On top of this, NetSuite’s user interface and inventory picking and shipping workflows were complicated and difficult to navigate.
The Solution
cbdMD began looking for a business partner with experience in the cannabis industry and quickly found NexTec. The company first reviewed multiple solutions, including Sage Intacct, SAP, Microsoft Dynamics and Acumatica. Though cbdMD’s team was initially leaning towards SAP because of name recognition, after a demo of the Acumatica platform, they knew Acumatica was undoubtedly the best option.
The cbdMD team and NexTec worked quickly to plan the Acumatica implementation and decided to consolidate the company’s CRM from Salesforce to Acumatica CRM and its expense management system from Expensify to Acumatica Expense Entry.
“It was a massive project, but we completed it on time and under budget. NexTec’s experience really came into play here. They looped in several consultants, each with specific skill sets. They kept the project on track while still being able to adapt to changes along the way.”
– Casey Lassiter, cbdMD ERP Manager
The Benefits
Upon going live on Acumatica and migrating its third-party platforms and middleware integrations into the solution, cbdMD has been able to save over $125,000 annually in CRM licensing fees. By eliminating its disparate applications and combining ERP and CRM into a single solution, the company’s management team has gained a direct view of daily activity across the organization.
“We no longer have to check two systems to get the full picture,” says Lassiter. “Everyone is on the same page. Real-time access to our business data is essential for better planning and decision making.”
Since making the switch from NetSuite and going live on Acumatica, cbdMD has also been able to:
- Streamline its pick, pack and ship processes and reduce labor hours to fulfill by 30%.
- Process thousands of orders in a day.
- Monitor month-by-month profitability and see profits for a specific product batch.
- Eliminate paperwork and spreadsheets that were being used to track quality testing.
The Future
Looking ahead, cbdMD plans to transition the wholesale arm of its business into Acumatica, adding integrated credit card processing to handle payments for wholesale orders within the system.
Read more of cbdMD’s story here. To learn how NexTec and Acumatica can help your company streamline operations and manage business growth, reach out to us. We’d love to chat.