A recent survey showed that 37% of cannabis cultivators are not profitable. When you work in the cannabis industry, you know that every dollar counts. Profit margins are slim and the market is competitive. Because of this, growers, manufacturers and distributors are turning to cannabis ERP software and seed to sale solutions.
If profit margins are so tight, why do operators use a seed to sale software that isn’t required? It’s because investing in a well-built software solution can actually make a cannabis business more profitable. It also helps operators scale their business without sacrificing quality.
Seed to sale software goes beyond inventory management and traceability. While every solution is different, there are three things an operator should be able to do to run a more profitable business.
- Understand their operations on a deeper level and identify opportunities to streamline
- Reduce mistakes by integrating tools across the business
- Eliminate hours labor cost with automated data entry and workflows
Business Intelligence Reporting
Companies in every industry are underperforming and don’t even know it. An operator that can identify opportunities for improvement in their business can reduce waste, meaning more profit.
Business intelligence (BI) reporting provides granular data insights into an operation. Reporting dashboards give operators the power to make more informed decisions, improve business capacity and return higher profit margins.
Seed to sale software, when used correctly, gives users real-time and historical data every aspect of the business. Having that information available makes a company more profitable because decisions are more informed, change is proactive, and waste is reduced.
Many Canix customers use the platform because of its advanced reporting capabilities. With Canix users have access to costs of goods sold, harvest profitability metrics, manufacturing yield outputs, historical reporting, sales reporting, and many other features that are unavailable on the Metrc platform. Click here to learn more.
Cannabis companies are using a bunch disjointed software tools across their company, causing confusion and mistakes that slow down operations. A software that integrates seamlessly with other tools is shown to reduce mistakes and speed up processes.
Seed to sale software gives cannabis companies the power to build a tech stack that works for them and unite information across their company. Profitability increases with the reduction in mistakes and time spent correcting them.
For example, Canix seed to sale software integrates with Quickbooks to ensure accounting always has the most current information. The integration means pricing, sales orders and inventory will never be out of sync.
Cannabis operations spend thousands of dollars and hours on data entry. Licensed businesses are required to report cannabis products through the entire lifecycle. State mandated reporting to platforms such as Metrc leaves operators with piles of busywork. This is especially inefficient when a business manages their data differently than the compliance report does. This is common when operators use manual in-house systems like Excel spreadsheets.
Seed to sale software is built to automate the storage, organization and reporting of business data. A company that eliminated data management has less labor cost and more space for profit. Some Canix users report a 75% reduction in time spent on data entry. Plus, integrations with state track and trace systems like Metrc gives operations the time to focus on their product while remaining compliant.
A quality seed to sale software can be an initially expensive investment for cannabis operators. However, with functionality to streamline workflows, forecast cost, manage data cleanly and useful integrations, a seed to sale software can pay for itself.