Andy Warhol once said good business is the best art, but running a good business in the cannabis industry is becoming increasingly difficult. The so-called green rush has met the harsh realities of increased competition, regulatory hurdles, and the fact that legal cannabis is no longer a novelty.
But none of this means success is out of reach. In fact, the folks at CannaBusiness ERP believe they can help operators flourish even as the industry continues to face internal and external obstacles. CannaBusiness ERP’s parent company, NexTec Group, has spent three decades providing industry-specific technologies that help organizations in other challenging sectors scale and prosper.
ERP (enterprise resource planning) software is designed to centralize most aspects of business operations, thereby streamlining efforts and helping companies maximize efficiency and profit. However, some ERP systems can be notoriously difficult to implement.
“It’s worth pointing out that an ERP transition requires a very large capital investment,” said NexTec Vice President of Sales Ron Fallert. “Even when a company has done its due diligence and found the right ERP for its needs, implementation can often fail due to a lack of understanding between the client and the partner that is overseeing the process.”
CannaBusiness ERP makes integration easier. Implementing any ERP will present some challenges, but CannaBusiness ERP was specifically created with cannabis operators in mind, employing an interface that is simple to navigate while still offering robust functionality. The feature provides a unique advantage over other ERP providers, some of which are known for being difficult, or even overwhelming, to manage.
“We see this in a lot of fast-growing industries, where tech-stack creep becomes a chief information officer’s nightmare,” Fallert said. “CannaBusiness ERP provides a centralized platform for most of a business’s accounting needs, as well as an extensible software to tie cultivation management, distribution, warehousing, and other operational needs together.”
CannaBusiness ERP was designed to be user-friendly while helping companies save money and maximize profitability. Operators who work in multiple states have found it eases the challenges inherent in staying on top of growth cycles, harvesting, and inventory management all at once while maintaining regulatory compliance across a shifting landscape.
According to Fallert, the cost of inefficiency adds up to more than just headaches. “Not being able to forecast your production, cash flow, and inventory can lead to unnecessary waste,” he said. “It can also result in poor harvest, penalties from lenders—or worse, wasted expenditures on equipment. If you’re paying a higher price for logistics and transportation, you’ll see the losses in revenue add up.”
Failing to optimize procedures can decimate a business, particularly as it scales. Adding the complexity of managing multiple verticals multiplies the risk a small miscalculation can wreak big havoc on the bottom line. CannaBusiness ERP creates a centralized hub for businesses to increase visibility into almost every aspect of their operation, reducing the risk that something will be overlooked unintentionally. In addition, increased transparency can help companies spot emerging opportunities.
“As this industry is still relatively young compared to a lot of other process manufacturers, competition is strong for investor money and operating capital is often leveraged,” Fallert said. “Having a strong ERP allows a growing organization to efficiently audit their financials and provide clear, concise financial reports, making venture funds or capital lending more accessible.”
CannaBusiness ERP provides finance departments with access to real-time reporting about most aspects of a business. The platform can automate a significant portion of the monthly financial closings and assist audits by collating transactions in a centralized location. This can save hundreds of hours of tedious accounting time for operators and make life a little easier for auditors, as well.
The tool is built on the powerful Sage X3 platform, which offers impressive business intelligence reporting and can be enhanced with third-party independent software like Nectari’s Sage Enterprise Intelligence or Prophix’s corporate performance management tools. Like NexTec, Sage has prioritized ease of use throughout its history.
“Sage is a multinational ERP with more than forty years of history in providing powerful accounting solutions for mid-market companies,” Fallert said. “Sage X3 being a cloud-based platform makes regular updates easy.”
Andy Warhol probably would approve of the way CannaBusiness ERP facilitates artfully balancing the complexities of running a cannabis business.
“As competition increases, the business that can run the most efficiently and has the best visibility into accounting, cash flow, and operations will have a leg up on their competitors,” Fallert said.
