Real-Time Inventory Management is Critical for Cannabis Manufacturers
It’s undeniable that legal cannabis is a burgeoning industry. As more states legalize for recreational use and others grow closer with each passing year, companies that plan on profiting in this area must come out with a high-quality product that satisfies their customer base.
Because of this, it’s easy to see why ERP, or enterprise resource planning, should be a part of cannabis distribution and cultivation moving forward. Let’s look at how ERP is going to tie into legal cannabis growth in the areas of compliance, traceability, and more.
Why would ERP be vital in the cannabis industry as it relates to traceability? It goes back to the necessity of keeping careful tabs on a desirable and valuable cargo as it moves between locations.
As a cannabis manufacturer or distributor, you want to know where your cargo is at all times as it moves through various transportation channels to its final destination. ERP can be used for tracking shipments with precision. Customizable inputs mean that detailed information is available for each delivery. That might include lot number tracking, a service call module, and various other methods of ensuring that the shipment always passes every required FDA inspection.
Since legal cannabis is in its infancy, a high level of regulation should be expected on both a national and state level. The ERP solution to this is to set up a system where every cultivator, dispensary, manufacturer, and processor will be sure that they are complying with whatever governing bodies exist.
With the right ERP system in place, you will know that you’re not in violation of any established regulations. That’s true for what is happening in the greenhouses, the formulas or recipes that are being used for plant growth, overall production demands, and any sale or transportation concerns that may arise.
Another focal point for which ERP can be helpful is with sales projections to keep appropriate stock. Cannabis growers and distributors will soon get an idea of how much product they are going to require within a designated period. They can use ERP projection software to calculate what they may need on a weekly or monthly basis. This will prevent there being a surplus that they’re not able to move or a shortage that costs them business.
Automation is something with which every business must contend in the 21st century, and the cannabis industry is not an exception. The wisdom of automation is self-evident. It saves businesses money wherever it can be effectively employed.
ERP can be helpful in this respect. With a customized system in place, growers, distributors, and other entities involved with the process will be able to figure out where machinery can be put in place. These machines will do the work more quickly and efficiently than human workers could.
ERP can also be used for in-depth reporting as companies rise to prominence in this emerging market. An ERP system that incorporates analytics tools can keep track of sales, movement of the product, how the market is responding to targeted advertising, and more.
All of this is going to be essential for any company, as decisions can be made in real-time that are completely data-driven. Improvements can be implemented where needed, and strengths can be isolated and built up.
In this rapidly-evolving industry, cannabis companies that do not have a well-developed ERP system are likely to be left behind. Aside from everything already mentioned, quality control, operations, and even human resources could all suffer without this vital element. That’s why every company hoping to make an impact in this new market needs to invest in one.