For many cannabis operators, choosing the right ERP, or enterprise resource planning, system can feel like an overwhelming task. Running a cannabis business is difficult enough as it is, without having to weight out he functionality of every available cannabis ERP system on the market. To help you make the best choice for you cannabusiness, here are six questions to ask yourself before choosing a cannabis ERP solution.
#1 Does it have the integrations I need?
Your ERP system should streamline your business by gathering segmented data in one, central place. By doing this, it creates a single source of truth and will provide your business with more accurate reporting while also reducing the need for manual data input or uploading information. Bonus points if the ERP has an official integration with state-mandated track and trace systems such as Metrc. You should be able to use the inventory management modules with your ERP system to simplify your operation, not complicate it.
#2 Does it reduce manual processes?
A good ERP solution will untangle your business workflows and leverage automation as much as possible. The software should empower users to improve business operations and promote profitability by eliminating manual processes. Many seed-to-sale software solutions will advertise that it’s a cohesive addition to a business, but you should be confident that the software you choose will not add to your workload or headache.
#3 Does it track COGS?
Cost of Goods Sold, or COGS, are fundamental to a lucrative business. Your ERP system should automatically have COGS tracked, pulling together information from other aspects of your cannabis operation. This includes everything from the cost of labor to non-cannabis products, also known as the Bill of Materials, or BOMs. Without COGS you will not be able to accurate understand your gross profit.
#4 Does it offer useful reporting and analytics?
Software solutions that are not designed for cannabis can leave you without the business intelligence you were looking for in an ERP software. It’s important to seek out a software that is designed for cannabis because regulatory compliance, inventory control and financial reporting are critical to your business management. There are cannabis-specific solutions that can manage everything from sales orders to cultivation forecasting, and you shouldn’t settle for less.
#5 Is it audit-ready?
Every business, including cannabis, needs to track historical data in order to be audit-ready. The ERP software your choose should allow you to access historical data in real-time at any time. Using a non-cannabis software, such as Quickbooks, alone will not provide you with the appropriate data for a smooth audit process.
#6 Does the software company care about the cannabis industry?
The best cannabis ERP software is the one built specifically for the industry by a passionate team. The software provider should care about their customers and demonstrate their commitment to cannabis companies.