Cannabis companies need accurate and effective lot and batch control features to help drive profits, maintain regulatory compliance and ensure that inventory management is effective.
The need for these controls and sound inventory management functions means companies need sophisticated enterprise resource planning (ERP) tools that help to integrate and automate functions from across the enterprise.
Making the right ERP choice affects batch and lot control in the cannabis industry significantly. With the right ERP solution in place cannabis companies can reap all the benefits of batch, lot and inventory controls.
As seen in the recent post, How emerging cannabis businesses benefit from the right ERP, many companies are opting to use tools that are designed specifically for the cannabis industry, instead of generic ERP solutions that do not have the features and capabilities necessary. Without these features, companies will end up paying more to customize off-the-shelf products.
Why are lot and batch control more important in the cannabis industry? There are several main reasons:
- Careful cultivation. Marijuana growth is a carefully managed, resource intensive exercise. Plants need the right combination of light, water, fertilizers and pesticides applied at carefully measured intervals and in specific amounts. From germination to harvest, measuring the accuracy of production is critical to gauge return on investment and set price. Companies need to have tools that measure, alert and analyze data on crops throughout the growing and harvesting process. Those data need to be tracked closely in lots and batches to ensure that quality is maintained, too.
- Regulation. Federal, state and local mandates are ever-evolving, but one of the most consistent features is the need for accurate, reportable and automated reporting on the status of lots and batches. These management capabilities need to measure the amounts produced or received, quantities sold and to whom (including shipments per customer), and the amounts of product contained in inventory, potentially across multiple locations.
- Scalability. Many cannabis companies are just starting, as more states and provinces legalize recreational and medicinal use of cannabis products. The industry is poised for dramatic growth. With sound lot and batch controls in place, companies can scale up their operations quickly to meet growing demand or expansion.
- Customer service. With automated tools in place, companies can provide better service. Accurate batch and lot controls allow for faster access to products, reduced fulfillment times and consolidation of inventory and warehouse processes. If there are issues, integrated and shared data allows for better response to customer problems.
- Predictive analytics. With better warehouse and inventory tracking, companies can analyze the popularity of products and strains, shift production schedules, and determine optimal pricing structures. Gain better insights throughout the supply chain to optimize production.
Having good inventory control and strong batch and lot control don’t matter much without the right ERP system orchestrating everything. NexTec offers a range of the most outstanding ERP options and has experience supplying cannabis businesses with ERP solutions that make sense for their unique needs.
Contact us to learn more about how NexTec can help your cannabis business with the right ERP solution designed for the industry.