Why Real-Time Inventory Management is a Must for Cannabis Manufacturers

Legal cannabis continues to be a burgeoning industry with more and more states overturning antiquated laws surrounding the cannabis plant – and it’s not just for medical purposes, but for recreational usage, too.

With each passing year, the number of states with legalized cannabis is increasing and those who haven’t legalized it yet are creeping toward the line. This inevitable trend in legislation means now, more than ever, it’s crucial for cannabis manufacturers to be thinking ahead.

Growth is every cannabis operator’s goal and cannabis enterprise resource planning (ERP) is an important tool for cannabis manufacturers to flourish and remain compliant. With the complex inventory management and supply chain needs and restrictions, ERP offers a unified system to track goods and project what’s needed.

Traceability and ERP: Why Does This Matter?

Traceability is vitally important to keep careful tabs on this type of cargo. This cargo—legalized cannabis—is valuable. It’s desirable, it’s significant, and as it travels from location to location, it’s important for everyone involved to know where it is, where it’s going, and if there are any unscheduled delays.

Manufacturers, producers, and distributors alike want to know where their cargo is at all times as it navigates through numerous transportation channels to get to its final destination. With ERP, shipments can be tracked with razor-sharp precision so operators can see where their cargo is via lot number tracking, a service call module, and various other methods that all work to ensure that the shipment is in its rightful place every step of the way.

Compliance in the Cannabis Industry: ERP Can Help

Legal cannabis is a unique industry. Though it’s hugely profitable and an ongoing trend, it’s still an industry in its earliest stages. As an industry still in its infancy with booming potential, it’s nowhere near fully developed. For this reason in particular, evolving regulation is both expected and required on national and state levels.

ERP solutions aren’t just useful for traceability and cargo tracking, they’re also critically important to become and remain compliant. Every cultivator, manufacturer, dispensary, and processor can be certain they’re in compliance with regulations from every applicable governing body.

Wherever a company lands in the cannabis industry, ERP can help with compliance. From greenhouses to formulas and recipes to plant growth to overall production demands to sales and transport, ERP can help solve compliance issues, ensuring operators are keeping in check.

ERP Sales Projections: Cannabis is Just Like Every Other Industry with Inventory

Consider the inventory concerns of any business – is the cannabis industry all that different from any other inventory-driven industry? Cannabis companies need inventory projections and sales predictions to ensure their operation’s shelves are wholly supplied and ready for purchase like everyone else.

Growers and distributors need to know how much product they’re going to need to satisfy a market within a given period. ERP helps answer inventory questions regarding product supply and timeline by predicting how much product is needed based on variables not easily calculated by a human.

Cannabis operators are able to calculate on a customized basis—weekly, monthly, etc.—to establish needs and timelines. Not only will this prevent surplus or shortage that could ultimately damage business, but it will also help move this industry into the future, growing past these early stages of the market.

Automation & the 21st Century: ERP Can Help

Today, all businesses seek efficiency and the companies that don’t get on board are often stuck in the past, spinning their wheels. No matter the industry, if a business isn’t focused on automation, its liable to be left behind.

The wisdom of automation speaks for itself. It’s fast, it saves money, and it zeroes-in on efficiency. ERP is an enormous boon in this respect. With a customized ERP system in place, anyone in the industry—growers, manufacturers, distributors, and more—will be able to figure out how they can implement machinery, AI, and more automation to help with industry efficiency.

Sage Intacct lets you make better decisions regarding your inventory in real-time to make improvements where they’re needed and often before they’re needed. In an industry experiencing this level of growth and limitless potential, Sage Intacct is crucial to provide improvements for your cannabusiness to help you solve problems and stay one step ahead. Contact us to learn more about how an an accounting solution can improve your cannabusiness.

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