Seed to Sale ERP Collects all of the data that you would need for compliance and much more!
In the mad dash to get funding, apply for licenses, build out, staff up and open a business in the cannabis industry, the most asked about topic of our consulting group is about compliance. Seed to Sale is used synonymously with compliance tracking, reporting and software. Yes, we all need to comply with state regulations. How else would the state get paid? Don’t kid yourselves. The reason for compliance is fundamentally and undeniably all about revenue for the states. We as business owners in the cannabis industry will spend a huge amount of time, money and resources complying to regulations. In the end that data is lost to the states. Like all emerging industries we tend to pay more and get less for our investments. The cannabis premium is alive and well. Put all of this together and the result is that we chase solutions to smaller problems and move on to others rather than taking a wholesale look at our needs, killing many birds with one stone.
As stated, Seed to Sale Software has become all about compliance and tracking locations of plants, products and inventory. You might use it in a grow situation to manage locations, destruction of plants, tracking those unique plants and batch ID’s through a process, however that is just physical and all data is for compliance reporting. In production/ kitchen we need to know what batches or coded material is used in extraction, what solvents (if any), ingredient lots and what is yielded etc. In distribution, we need to know what we sold to who and report on it all. Our dispensary needs to know what’s in stock, what we sold to who and when- also for reporting. What’s missing? DATA! What are we? We are business owners! What do business owners need to manage their businesses? Analytics… Yes, we need to be able to analyze our processes, raw goods, inventories, labor costs and every item that goes into what we produce, make and sell so we have accurate accounting of what our total costs are for our goods. How else can we sell them effectively and maintain healthy margin levels and have cash flow to manage and run out businesses anywhere but into the ground? The rest of the business world uses business process automation software integrated into their accounting packages and CRM (Customer Resource Management.) They have a holistic view of every aspect of their businesses, which enables them to make real-time decisions that help them effectively manage their businesses. What can we do in Cannabis to make this easier for us? Enter Seed to Sale ERP.
A Seed to Sale ERP (Enterprise Resource Program) collects all of the data that you would need for your compliance reporting and tons more at the same time. It tracks, manages and minds your grow, production/ kitchen, distribution and dispensary. Yes, direct compliance to most states databases are in there but in parallel. At the same time, you start collecting information that gives you real-time knowledge of cost per gram and how effective your employees are? (Why does it take Bill twice as long as Mary to trim?) What’s on my shelves? What is about to age from A grade to B grade bud? Do I need to run a special? The list goes on. A Seed to Sale ERP package will give you data to view (Big Data) in dashboards and report on while having direct interfaces to compliance DB’s like Metrc etc.… An ERP will manage all of your raw inventories of nutrients, bags, packaging, concentrates, carts etc.. It will track all lot-codes, so if there in the event of a re-call you know the location everything that went into the supply chain. There is so much more. A good ERP employs Open API’s that enable integration to other software solutions that can help manage other marketing, accounting, security etc. tasks through applications like; QuickBooks, Salesforce.com, Google, digital signage, Leafy, LucidGreen and so many others all through the cloud. Think about having every transaction in a dispensary at check-out stamped with and linked to video of that transaction, linked through the Metrc or other ID. How easy would it be to see where inconsistencies or blatant theft at POS are occurring? How easy would it be, at the time of production and packaging, to update your Leafy, BudFinder or LucidGreen account? The efficiencies go on and on. What does this all mean?
ERP’s come in all shapes and sizes and in all cost ranges. You don’t have to spend much more than a compliance package costs to get this functionality. It buys you Big Data. Whether it’s to survive competitively in Oklahoma with 1500 licenses and counting, to manage the tight margins of being in NY, to grow so you become one of the big boys or just want to get the big payout via a merger or acquisition. Regardless of you plans you will need this information as your paddle to help ride the rapids of the raging river that is cannabis. It’s ever changing. It’s not if but when the federal government opens the flood gates. That writing is on the wall. Amazon, Altria, Pfiser, Unibev, and the list goes on. They are all making huge investments in the industry. These are not companies that go by sales. They are ‘Big Data’ companies. The company they keep all have information that they can use to help market and exploit markets. Who will they want to do business with?
What is the wind up? If you want to have a handle on your costs, labor, process, compliance, inventory and sales an accounting package will take you to the point of financial statements, However, if you are looking to manage growth so your pitch deck sings its time to step up the game. Remember, a compliance package keeps your license in working order but a Seed To Sale ERP manages the short, medium and long range goals of your Canna-business and compliance…. It’s in there.
