Buyer Beware: Why Choosing a Reliable ERP Solution is Critical in Cannabis

Why Choosing a Reliable ERP Solution is Critical in Cannabis

For the cannabis industry, volatility is the name of the game. Cannabis processors and cultivators constantly face new hurdles, from changing regulations, growing competition and high interest rates to fears of a recession and continued banking and capital challenges.

It’s a lot to overcome. And it’s why cannabis companies working hard to stay in the game long-term should be looking for steadfast, customer-focused partners and vendors that provide best-in-class ERP solutions for solving these—and other—evolving industry challenges.

Today, we’ll explore what happens when cannabis companies choose an unreliable ERP vendor and what happens when cannabis companies choose one they can trust.

The Dangers of Selecting the Wrong ERP Vendor and System

An ERP (short for Enterprise Resource Planning) is software that brings data from every corner of an organization into a centralized database, offering team members a single version of the truth and the power to make fast, informed decisions. It also streamlines business operations, increases visibility and reduces waste.

Implementing a modern ERP system is a smart decision for any cannabis company, but if the company doesn’t carefully evaluate the ERP vendor (who they are, how they operate, what their customers say about them) before making their ERP choice, then dangers abound. For example, what happens when, after working with an ERP vendor for some time, the vendor suddenly decides they can no longer support businesses in the cannabis market? Seems far-fetched, but it happens, and it happens often.

Another danger for cannabis companies is selecting a smaller ERP provider. On the face of it, choosing a smaller, less established ERP solution may seem like a safe bet. Less established ERP systems and vendors need clients to grow and often focus on providing superb service to ensure their customers remain satisfied. But independent ERP providers run the risk of being acquired by a larger conglomerate, which could abandon customers and steal the system and support upon which they depend.

And then there’s the danger of selecting an underperforming ERP solution. Performance capabilities should be assessed during the cannabis company’s ERP research, and if they’re not, severe consequences can occur. The inability to comply with regulatory standards and laws, lost inventory, limited visibility into sales numbers are just a few of many concerning examples.

So, what exactly should cannabis companies be looking for in an ERP solution? One that’s designed specifically for the cannabis industry and is implemented and supported by industry experts—like CannaBusiness ERP.

The ERP Software Sweet Spot

CannaBusiness ERP is cannabis software designed from the get-go to help cannabis businesses manage every aspect of their business. Configured by NexTec Group experts with deep industry knowledge and built in Sage X3, a leading software provider with years of experience and expertise, CannaBusiness ERP is a prime choice for cannabis companies in today’s uncertain market.

Sage X3 solutions are faster, simpler and more flexible compared to typical ERP systems. They also come at a fraction of the cost and complexity. Best-in-class functionality includes native procurement, warehousing, production, sales, customer service and financial management features.

Additionally, Sage X3’s multi-company, multi-finance, multi-currency capabilities are unmatched. This robust functionality gives Multi-State Operators (MSOs) the ability to manage several companies in the same database and get a full picture of the health of their operations.

But that’s not all.

On top of the powerful Sage X3 platform, CannaBusiness ERP’s specialized team of developers has spent years creating additional features for the cannabis cultivation and infused-manufacturing industry.

On the cultivation side, users can:

  • Track clone propagation and get visibility into replanting, trellising and more.
  • Account for inventory waste and capture inventory adjustments for regulatory reporting.
  • Manage fertigation activities, such as zone tracking, tank fill and cleanout management.

On the processing edibles and infused products side, users can:

  • Automate production sequencing to minimize setup, cleanout and non-production activity.
  • Improve operational efficiency and reduce production waste.
  • Manage cannabis and food-specific requirements.

And comprehensive quality and compliance functionality and features for inventory, distribution, finance and operations have also been created to help cannabis companies grow their businesses. 

Choosing A Reliable Partner

NexTec is here to stay. Cannabis companies can depend on our experts and our cannabis ERP software—which receives regular updates and new functionalities. In our latest release, CannaBusiness ERP 2023 R1, we’ve added new features to help customers avoid disruptions to their operations and to provide them with the exact tools they need to succeed. We’re committed to providing our customers with unbeatable—and reliable—support as they work to overcome the challenges that will inevitably come their way, and the story of CannaBusiness ERP customer FIGR™ is a perfect example.

FIGR—located in Charlottetown on Prince Edward Island—was originally owned and operated by a publicly-traded American tobacco conglomerate. The company used SAP as its ERP system, but when FIGR was bought by Prince Edward Island locals, they were required to find their own ERP solution—and in a very short amount of time.

Says Kyle Smith, CFO of FIGR, “We didn’t have any time to waste, but we still needed to make the best decision to support our operations. We looked at several ERPs and even considered staying on SAP. Then NexTec showed us CannaBusiness ERP, built in Sage X3, and won our trust and business.”

Using a phased implementation approach, NexTec was able to provide FIGR with a transition that caused zero downtime and provided complete inventory traceability (ensuring a seamless changeover for its customers) within a seventeen-week timeline. Now, the FIGR team has:

  •  A user-friendly ERP solution with customized dashboards.
  • Backward-and-forward traceability.
  • Automated compliance reports.
  • Quality control functionalities.
  •  Complete visibility and control into its production and distribution processes.
  • Efficient reporting and data analysis tools.

All in all, the ERP implementation was a major accomplishment and an enormous benefit for FIGR. As Smith notes, “We’ve got the right application in place with CannaBusiness ERP and the right technology partner to keep us going and growing.”

At NexTec and CannaBusiness ERP, we’re dedicated to ERP project success. Contact us today with any questions or to schedule a demonstration. We’d love to chat.

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