I know we have to do seed-to-sale tracking for compliance purposes, but what are some business advantages we can generate from running cannabis inventory software?
CHRIS MILAN: This question comes up a lot in our discussions with cultivators and processors. The No. 1 priority for most cannabis companies is state-specific and Health Canada compliance. Because the regulations vary for each state, this compliance adds another level of complexity to a company’s plant processing and tracking. This is just one component of running a successful cannabis business.
An Enterprise Resource Planning (ERP) solution built for the cannabis industry provides cultivators and processors with the tools needed for compliance and traceability—but also much more. Cannabis-specific ERP software allows for full lot and serial traceability—from the mother plant or seedling all the way through processing and shipping of finished goods. On top of this, inventory tracking functionality gives management the insight and control they need to take business to the next level. This includes:
- Full costing of inventory, including cost per gram
- Insight into product availability and shortages
- Visibility into fast and slow-moving products
- Analysis of gross margin
- Streamlining of inefficient production processes
As the cannabis industry continues to evolve, it’s even more critical for cultivators and processors to adapt to changing conditions and market trends quickly. With the help of inventory management and ERP software, leading cannabis companies can streamline their compliance processes, optimize inventory management and continue to thrive.
Chris Milan is a solutions-based Senior Executive with more than 30 years of success spanning construction, cannabis, process manufacturing, professional services, public accounting, management consulting, field service, agriculture, retail, and food and beverage.