When you take a step back and think about all the data and information that you create every day in different parts of your cannabusiness, there is an abundance of valuable information available. In-depth insights and analysis that can help to deliver faster and better-informed decision-making, leading to greater productivity, less errors and profitability.
An ERP solution designed specifically for your cannabusiness provides you with the ability to collect data and consolidate it within one centralised, secure place, streamlining your operations across growing, harvesting, production, distribution, and sales.
By removing spreadsheets and the need for disparate systems, you will reduce the time needed to run reports and provide real-time visibility and transparency across every aspect of your cannabusiness to key stakeholders and decision makers.
What’s more, if there are multiple entities, subsidiaries, or locations to consider, a tailored cannabusiness ERP solution should be able to monitor, track and record information from each warehouse, location, industry type (grower, processor etc) across different states and countries.
There are several areas where it’s key to track and manage what is happening within your operation such as greenhouse, production, inventory, and finance. When evaluating a cannabusiness ERP solution, make sure you ask the right questions to fully understand the integrated functionality of the ERP solution and how you can leverage insightful data from within the following business functions:
The right cannabis ERP solution allows you to track, measure, report, and analyse growing conditions, including light, light sources, pesticide and nutrient application, and watering from germination to harvest, without any gaps in the information collected. The system utilises user-specific role permissions in the software to reduce errors, prevent the mishandling of critical information and maintain the integrity of data and security. Utilising the data intelligently grows an efficient and productive operation.
Tracking and recording data relating to processes that might impact strain-specific plant growth and yields such as moisture content, feeding and pruning schedules, and fertiliser, provides you with the opportunity to replicate successful activity in the next growing season, optimising conditions and increasing revenue per yield.
Seed to Sale Tracking
The ability to trace the sources and record and monitor the growing conditions of each plant, which products are used and clone potency of each plant batch with origin information. Achieve full traceability through the entire growing, hiring, processing, and packing cycle and understand your operations better at the same time. RFID and barcoding tools provide a unique plant ID number, allowing you to track at an individual plant level in real-time, capturing information regarding the number of plants, assignment of batch names, container type, wet and dry weight, and the recording of waste or loss.
With a continually evolving landscape in terms of regulatory compliance and robust regulations governing every aspect of your cannabusiness, it is critical that your organisation closely adheres. Maintaining licencing requirements, seed to sale traceability, testing procedures, waste disposal protocols, product recall capability, packaging and labelling demands and tax payments all need varying levels of reporting capability. Regulatory reporting can be further complicated when considering multiple locations, subsidiaries, and entities.
To ensure that you stay on the right side of regulatory compliance you need to be sure that the ERP solution you choose stops your cannabusiness from operating in silos and that the right information is accessible by the right people in real time.
An industry specific ERP system with one centralised database and integrated reporting will ensure that you keep up with all aspects of regulatory compliance and allows you to be flexible to meet the changes as they happen.
Planning and Scheduling
Check that the solution you’re evaluating has production planning and scheduling capabilities to help you allocate resources as effectively as possible. If you have visibility of lead and lag time, machinery and resources, product profitability, approved suppliers, demand for specific strains and best-selling products, and quantity changes,
By factoring in production capacity and available materials, dynamic production planning and scheduling functionality enables you to streamline the allocation of resources. An industry specific ERP solution should factor in such things as the material lead and lag time, machine and resource availability, cannabis product profitability, approved suppliers, demand for particular strains and products, quantity changes, and variations in strains or types of cannabis products. Having visibility of this lets you make informed decisions about when to switch resource and schedule production changes as soon as production reaches capacity or certain strains or product supplies have diminished.
Inventory Management and Recall Preparedness
When evaluating an ERP solution, make sure that there is strong inventory management capability and automated track and trace record keeping from seed to consumer.
Solutions that offer highly secure plant identification methods to track greenhouse inventory in real time, and the monitoring and documented loss of inventory due to damage, shrinkage, accidental or willful destruction also keep you in control of exactly what you have, and that all inventory is accounted for.
In the event of tainted produce or unsafe products, an ERP with product recall functionality is also a must have. With the ability to forward and backward lot and serial and plant ID tracking, you can streamline supply chain and inventory transactions to ensure strict regulatory adherence is maintained.
Federal and State government reporting requirements can differ and so it is essential that your ERP has the capability to integrate with seed to sale tracking systems to ensure adherence to all legal requirements.
Data regarding audit compliance and potential breaches must be captured and shared to avoid any violation of compliance regulations that can have both a reputational, loss of earnings or worse impact. Having the ability to integrate into state administered systems saves time, money, and the negative impacts of non-compliance.
Material Resource Planning
Cannabis companies can benefit from efficient resource planning by incorporating the material resource planning (MRP) functionality of a cannabusiness ERP solution to use resources efficiently. MRP ensures enough raw materials for production and finished goods on hand to meet customer demand.
Your chosen ERP software should also be able to handle all core accounting processes within your cannabusiness by gathering financial data in one central location, eliminating duplication and information from different sources. You should have full visibility of your business’s overall financial health with a solution that can track expenses, assets, liabilities, cash flow, and profitability. This data then provides the financial reporting tools for invoices, journal postings, purchase orders, cash management, monitoring of inventory, and other report creation. Automation removes the need for manual reconciliations as the information from accounts payable and accounts receivable flows into the general ledger, giving the finance team the opportunity to focus on more strategic tasks.
An ERP solution that is best suited to your cannabusiness needs will incorporate tools that provide you with high level and detailed visibility across your organisation. Industry analytics, key performance metrics and forecasting tools to access your data to collect, enter, use, analyse, and report on information in real time.
Analytics that give you a complete view of your operation from seed to sale, reporting on key metrics, financials, and key business metrics, and tailored to the needs of investors and company stakeholders.
Whether your business wants to identify its most profitable strain or forecast the future sales of a new product, the data within your ERP solution needs to provide real-time business insights to help move your cannabusiness forward.
A data-driven decision is the best decision.
Aptus Business Solutions
In a highly competitive and constantly evolving market, your choice of ERP solution can mean the difference between surviving or thriving.
An industry specific solution that exceeds expectation in addressing your needs through automation and emerging technologies will dramatically improve your processes and give your cannabusiness a competitive edge.
As a certified Sage X3 and Nextec Partner, we have bags of experience in helping organisations navigate their way through the cannabusiness ERP landscape.
From the outset, we get to know your pain points, listen to what’s working and show you where improvements can be made.
If you’d like to chat and discuss further, please get in touch or call 1300 998 594.