In the emerging cannabis business, it’s important to integrate your operational systems and growing processes. What’s more, it is essential to have the proper systems that ensure compliance with the multiple compliance mandates that are ever evolving.
An enterprise resource planning (ERP) system is the smart choice for companies looking to integrate operational, growing, and compliance needs in one unified platform. Below are some key insights for understanding how your ERP is a competitive differentiator in the cannabis industry.
The importance of regulatory compliance
In the tightly regulated cannabis industry, companies need to track the many government regulations carefully. As seen in the recent post, The Industries Where Your ERP Choice is a Major Competitive Differentiator, cannabis regulatory compliance requires careful tracking, measurement, and documentation.
Your enterprise resource planning software can take advantage of processes in place for other industries, notably the food and beverage, that are similarly regulated.
Like other process manufacturing companies, a cannabis company can use ERP features to track and trace, monitor, and report on raw materials and finished goods.
ERP systems support government compliance reporting, and use RFID, barcodes, and tagging technologies to track each plant as it moves from the field or house growing facility through production.
Coordinated systems across the enterprise
ERP tools are designed to integrate all core functional areas. With the right ERP system, cannabis companies can:
- Manage accounting, sales, and operations in one system
- Track the cost of goods
- Manage staff, assigned tasks, and related labor costs
- Reduce manual error calculations
- Coordinate shipments via distribution management software
By tracking plants from seed to sale, companies can better assess plant movement and harvest information. Financial tools integrated with these plant metrics can help determine labor needs and pricing. Strain tracking grow room management and yield calculations can be managed digitally, reducing significantly the risk of manual error and eliminating the need for cross transcription and hand calculations.
Cannabis growing requires extensive knowledge and planning to ensure that delicate plants grow properly and maximize yield. Employees need to carefully monitor progress and ensure that plants are on schedule. With ERP software, you can automate notifications about watering schedules, light cycles, and pesticide and nutrient applications.
The ERP solution you choose can help you manage your growing and production. Doing so gives you decided advantages over the competition.
Fast recall management
In the unlikely case of a recall, ERP tools can easily pinpoint the affected area of the grow operation. For example, if an improper nutrient was added to the soil, the ERP can quickly identify the scope of the affected plants and pinpoint where those plants are.
This process considerably reduces the time it takes to understand the scale of a recall event. The mitigation costs are also reduced, and response times are accelerated.
Tax regulation management, especially complex 280E guidelines, require careful scrutiny. To ensure tax compliance, be sure to choose an ERP solution that has integrated finance and sales modules.
Security is another critical component of cannabis ERP solution. Keeping corporate and customer data private and secure is important to developing and keeping a solid reputation.
At NexTec Group, we work closely with cannabis companies to manage their growing businesses. Contact us to learn how NexTec Group can help you remain in compliance, improve operational efficiencies, and gain market share.