Though federal legalization of cannabis has hit a few snags over the last few months, federalization in the U.S. is inching closer and closer to realization. Case in point, President Joe Biden signed the Medical Marijuana and Cannabidiol Research Expansion Act (MMCREA) into law in December 2022, limiting federal restrictions on medical marijuana research and on the development and cultivation of research-grade marijuana.
Provisions of the law include streamlining the registration process for marijuana research and advancing the research for the development of U.S. Food and Drug Administration (FDA)-approved drugs that use marijuana or cannabidiol. It also opens the door for State-licensed physicians to discuss the potential harms and benefits of marijuana and marijuana derivatives, such as cannabidiol, with their patients.
In a Cannabis Business Times article, authors Joshua Horn, Robert Eisentrout and William Bogot explain why the passage of this bi-partisan, “standalone federal cannabis law”—the first of its kind—is so important:
If this law acts as intended to generate significant research supportive of the medical efficacy of cannabis, Congress may be forced to seriously consider further cannabis reform. This law also addresses the primary argument of industry opponents by asking for, among other things, research on how cannabis affects our ability to drive. Research on this and other subjects will better inform the discussion about broader federal cannabis reform.
MMCREA is a big step for the cannabis industry, and Multi-State Operators (MSOs) need to prepare for the potential changes it may bring. Part of that vital preparation is ensuring they have effective quality measures in place to adapt if or when federal legalization occurs.
Struggling with Ineffective Quality Measures
Providing consistent, high-quality cannabis products requires standardizing operational processes, procedures and expectations. When successful, the result is loyal customers, but many cannabis organizations are relying on a hodgepodge of disconnected systems to run their business. This makes it impossible for them to form a cohesive, smooth-running operation, which minimizes their quality management capabilities and reduces their visibility into their financial and operational data across the organization.
Such managerial and operational deficiencies hinder MSOs ability to grow their businesses in different states. For example, each state has varying testing requirements, and MSOs must adhere to each one in order to provide cannabis products in one state that are of equal quality in another state. Without the right quality management tool to help them, they struggle with ineffective quality measures and the ability to produce uniformly great cannabis products.
But that’s not their only struggle.
MSOs’ long hoped-for federalization would bring an extra layer of regulations—on top of existing state and local requirements—for growing, packing, testing and marketing, which will likely create conflicting laws and gray areas. Navigating these many evolving regulations will be incredibly challenging for MSOs if they’re unable to efficiently manage and streamline audits, financial compliance, lot traceability and more.
With these challenges in mind, it’s clear that MSOs must build their operations for the current industry but have the ability to pivot if—or when—legalization at the federal level occurs. Fortunately, MSOs will be able to do just that if they implement an industry-specific Enterprise Resource Planning (ERP) solution, like CannaBusiness ERP.
Cannabis ERP Ensures Quality for Now and in the Future
CannaBusiness ERP—built in Sage X3 and delivered by NexTec experts—helps cannabis businesses collect, synchronize and analyze their business data within one, comprehensive database. It supports cannabis finance, manufacturing, inventory, seed-to-sale, traceability, compliance and quality needs with specialized features and functionalities.
These cannabis ERP features and functionalities enable cannabis businesses to easily:
- Adhere to regulations and support EU GMP standards and U.S. State/Health Canada reporting.
- Integrate multiuser checklists and quality audits for inspections to assure conformance to specifications.
- Ensure safety with full lot/serial traceability, product recall management and comprehensive allergen tracking.
- Simplify the management and delegation of tasks with role-based testing and control.
Ensure Effective Quality Management with CannaBusiness ERP
All MSOs can ensure effective quality management by utilizing CannaBusiness ERP. They’ll have the capabilities they need to smoothly carry on with operations if federalization occurs, and they can trust that NexTec will walk with them every step of the way.
Contact our team of experts to find out how CannaBusiness ERP can help MSOs flourish today and tomorrow. We’d love to chat.
About NexTec CannaBusiness ERP
NexTec CannaBusiness ERP is a complete business management solution purpose-built for cannabis cultivators and processors. Powered by Sage X3 and delivered by NexTec Group, CannaBusiness ERP provides a single system to manage your entire business through finance and operations, crop and harvest management, seed-to-sale, compliance, quality, and traceability. Leading cannabis companies trust NexTec CannaBusiness ERP to manage their day-to-day operations.
NexTec Group is one of North America’s largest and most experienced technology consulting firms, specializing in industry-specific solutions for mid-sized organizations. For thirty years, NexTec has been a trusted partner to businesses, delivering, implementing and supporting the core Enterprise Resource Planning (ERP) and Business Intelligence (BI) solutions they need to scale and grow.
To learn more, visit www.nextecgroup.com or follow us on LinkedIn.
