The Pros and Cons of Implementing a Cannabis ERP System
July 28, 2022 
Photo: Trym
If you’re in the cannabis industry, then you’re probably used to absorbing a lot of new information and staying adaptable to change. Any business that scales must also scale its systems to keep up with increasing complexities. Software, which helps teams automate labor-intensive processes, is a key tool in sustaining growth.
That’s where a cannabis ERP comes in. An ERP system is software that helps enterprise businesses in the cannabis industry manage their entire cannabis operation. It can support everything from regulatory compliance to inventory management and sales tracking. Businesses like cannabis growers looking for a way to improve their business efficiency might consider a cannabis ERP for their software stack.
What Is Cannabis ERP and Why Do You Need It?
Cannabis ERP is short for cannabis enterprise resource planning. ERP systems were originally used to centralize manufacturing processes, but have come to also incorporate back office processes.
Large-scale cannabis operators who are looking for ways to improve the flow of information and data between departments might consider a cannabis ERP. Cannabis ERP systems can help save time and money by automating tasks and improving communication between departments. A good cannabusiness ERP system will also provide insights that inform better business decisions.
Sharing information across cultivation, manufacturing or extraction and retail departments can be very difficult if employees are only using spreadsheets and email. These manual processes don’t scale very well, aren’t transparent, and create financial reporting headaches for management and accounting departments. An ERP system solves this challenge and centralizes many of your back-office processes under a single roof.
Three Benefits to Implementing a Cannabis ERP Platform
ERP systems can be an asset to your organization. There are many advantages to employing a fully integrated program. Some of the key benefits for a cannabis business include:
- Improved collaboration: A flourishing cannabis business requires collaboration. However, because collaboration in the workplace takes more time and effort, businesses frequently discover their staff are working in silos.
- Total visibility: One of the best selling points for ERP software is the seamless access to all aspects of your cannabis business and supply chain. By pulling data from every department directly to the senior management team, ERP software allows comprehensive access to every critical process in your company.
- Better reporting and planning: Capturing insights from operations assists management in production planning and performance review. An ERP system may quickly produce valuable business intelligence reports at any time because it provides a single source of truth.
Three Cons to Implementing an ERP System
- Too complex: Implementation of ERP software is lengthy and difficult. It requires a dedicated project manager, technically trained to customize the setup for the business.
- Rigid and expensive: ERP systems aren’t very forgiving, nor are they easy to change and update. Installing and setting it up for your business demands a specialist or vendor consultant. These factors affect the total cost of the system
- It takes too long to adopt: From shopping for it, to customizing and implementing the software across all your cannabis business units, adopting an ERP is an arduous process. It takes all stakeholders to encourage company-wide adoption and training.
For more information, including questions to ask yourself in the ERP evaluation process, what to consider when looking for the right system, and how to get started, read more in this post from cannabis software company Trym.
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