As more cannabis businesses are licensed and open for business, the fledgling industry is likely to see dramatic change in 2019. Many cannabis businesses are realizing they need an industry-specific enterprise resource planning (ERP) solution to address rapid growth, regulation and management.
Complexity. The cannabis industry has grown at remarkable rates, especially with expanded legalization for medical and recreational use in the United States and Canada. Demand is high and likely to remain there, meaning cannabis companies need to address customer service and operational efficiencies. With the right ERP solution, companies can simplify that complexity by managing finance and operations in one system, automate tasks, stop manual errors and manage staff activity and tasks.
Regulation. Recreational marijuana use is now legal in Canada and 10 states, with three states approving medical marijuana use last year. With more likely to follow in 2019 and beyond, cannabis companies need an ERP solution that provides for better reporting from multiple jurisdictions. Your business needs a solution that uses automation and data collection tools to monitor, track, report and document processes, payments and other information sought by regulators.
There’s a related issue that the industry faces in 2019: visibility. With more legalization comes more public interaction. To improve the visibility and credibility of the industry, cannabis businesses need to demonstrate discipline, good business practices and compliance, even as it continues to be hampered by some stigma and restrictions.
Safety. With more usage both medically and recreationally, cannabis companies increasingly will be held to the same safety standards as other consumables. That means expectations of product safety and transparency. Your ERP solution needs to deliver transparency throughout the supply chain to allow you not only to run your business better, but also to meet consumer and regulator expectations.
A distribution management software component of your industry-specific ERP helps manage the sourcing, growing and selling of your products. This seed-to-sale approach provides you will important data and fast response if there is a need for tracking or tracing products prior to or after sale.
New Products. The legalization throughout Canada and to more than half the adult population in the U.S. means more customers and evolving tastes, interests and expectations. Product development will need to respond to shifting consumer demands. An ERP solution that tracks strains, products, sales and customer demographics helps cannabis companies anticipate and respond to changing demands, get products to market faster and use data to drive decisions related to product and price.
Investment Growth. The extraordinary growth of the cannabis industry makes it an attractive space for investors. There is likely to be more M&A and consolidation beginning in 2019 as larger corporations look to grow. Having the right technologies in place leads to better profit margins, operational efficiencies and compliance that makes your cannabis company more attractive to investors and buyers.
NexTec helps cannabis companies find the right ERP solution for their pressing needs. NexTec offers the CannaBusiness ERP, designed specifically for the cannabis industry and addresses all potential 2019 pain points. Learn more about technology that runs your CannaBusiness. and how NexTec can drive success for you this year.