Cannabis businesses face no shortage of challenges. Aside from increasing competition and fighting the stigma on cannabis products, businesses cannot expect to thrive without addressing one major obstacle: compliance.
Cannabis regulations vary from state to state, and these regulations have significantly changed in recent years. Operators must keep their finger on the pulse of their state’s requirements as well as be forward-thinking as to how the industry will change based on changes to Federal regulations.
To prepare for these shifts and protect your cannabis business from compliance issues, operators should be able to answer the following questions with confidence:
- What’s included in an audit and how can I avoid fines?
- Can I perform a full product recall if necessary?
- How can I collect and store compliance information that’s readily accessible and reliable?
One solution that can address the above compliance complexities is an Enterprise Resource Planning (ERP) system that’s made for the cannabis industry.
How Compliance Affects Cannabis Business Operations
No matter your specialty, whether you’re a grower, manufacturer, retailer or distributor, cannabis operators are subject to strict laws and heavy scrutiny from regulatory agencies. Regulations are constantly being reshaped in an effort to bring structure and organization to the industry, but they’re also leaving confusion and frustration in their wake.
As a result, businesses are vulnerable to a variety of severe risks, including expensive fines, the potential of losing their licenses, forced relocation due to zoning changes and even the possibility of receiving cease and desist orders.
The best defense against all of the above is to monitor compliance and reduce the risk of profit-damaging consequences. Incurring even one major compliance-related fine could offset profits that would otherwise allow a business to expand and maintain a competitive edge.
Filling in the Gaps with Technology
It’s challenging enough to get a business license in the cannabis industry, but your compliance obligations don’t end there. From record-keeping to tax reporting to quality tracing and more, operators have a responsibility to their customers and regulatory agencies.
Many cannabis companies are turning to technology to help manage cannabis compliance and ensure product safety throughout the supply chain. ERP software provides cannabis operators with tools to put compliance at the center of their daily operations, rather than as an afterthought or something to be addressed only during an audit or recall.
With the help of ERP software built specifically for the cannabis industry, operators can ensure compliance with the following functionality:
- Support for GMP standards, global compliance and scalability
- Health Canada and U.S. state compliance reporting
- Management of multiple reporting requirements for operations across regions
- Automated communication with state regulatory agencies (including Metrc and CTLS)
Best Practices for Managing Cannabis Compliance
One of the biggest advantages of maintaining compliance isn’t just for operational gains, but rather for the cannabis industry at large. Visibility into company operations can help to legitimize the industry and ensure its viability moving forward.
ERP software built for the cannabis industry provides a strong foundation for governance and compliance. With the ability to perform a full recall within minutes, as well as powerful reporting features and end-to-end traceability functionality, cannabis operators can feel confident in their ability to stay compliant.