A Comprehensive Guide to Cannabis ERP and its Implementation


It's not difficult to see that ERP plays an important role in every business executive, and shows tremendous improvement regardless of its size or sector.

The primary purpose of an ERP System is to give a firm foundation for running core business processes with a tight deadline.

They have surpassed our expectations and delivered better results than any other internet technology company with multi-million dollars in revenue, technology domain, technology partner, technology sales, or ancient technologies we have ever worked with.” 

It is the foundation for  reliable partner digital transformation and allows organizations to drive strategic change in the internet technology and technology industry.

As everyone knows, cannabis companies need an ERP to build a company from the ground. This article will discuss the "what" as well as the "why" of cannabis-specific ERP systems, the criteria for selecting a platform, and give a brief overview of the implementation team's dedicated process.

If you work in the cannabis sector or are an expert in VoIP technology, you are probably used to learning new material, filter cleaning, fluid flow, and adjusting to changes. Systems must be scaled for a business to keep up with its growing complexity. To maintain fluid flow, filter cleaning, and growth, the software is essential. It automates time-consuming activities and frees up building sales teams to work on more.

The answer is ERP for cannabis software solution is an ERP system, which is software created to assist cannabis firms in managing every aspect of their organization. Everything is supported, including sales tracking, financial records, regulatory compliance, and inventory management. By understanding the Cannabis business growers can increase their efficiency by using a software system known as a cannabis ERP solution.

Why Cannabis ERP Solutions Are Important?

Cannabis ERPs are a central business management system that allows companies to meet their understanding of core business. They manage all aspects of the business, including finance, accounting, inventory, and finance.

If you think, "Hey, that sounds just like an ERP," then you are right. The basic structure of cannabis ERPs and regular ERPs is the 9-month period. However, ERPs can be both generic and hyper-specific. While cannabis ERPs can perform most of the same functions in other industries as those found in other industries, they are also able to address the unique challenges and requirements of this industry.

Many marijuana businesses and electrical engineering departments use a separate seed-to-sale system in order to comply with federal and state regulations hours per month. They might use separate accounting systems, depending on their business model, as well as additional solutions for inventory management and POS.

High regulation in the cannabis industry means that businesses must maintain data integrity, control, and visibility at all costs. All of these are difficult to accomplish when working with outdated, fragmented systems that make it difficult to collect reliable data and put it into use.

This can lead to serious business problems. Bad data can result in regulatory non-compliance or recalls, as well as poor decision-making. Complex and fragmented systems are also difficult to replace or improve. This means that you won't be able to adapt to market changes as well as customer needs.

Cannabis companies can manage their business processes, keep compliance, track resources, warehouse management, and leverage data to achieve certain business outcomes by working from one source of truth.

The Key Benefits Of Using A Cannabis ERP In Business

The ERP is the first step in helping your company maintain and secure a competitive edge. Here are some of the greatest benefits of choosing the right all-in-one solution for business central.

  • Data-driven decision-making: A unified ERP gives cannabis companies complete visibility and keeps track of records. They can see all of the company's activities in one place. Intuitive reporting tools and baked-in intelligence allow users to make faster decisions and drive improvements.
  • Transparency in the supply chain: The Cannabis ERPs allow a team of people to track supply chain management of finished products, plants, and manufacturing processes, forecast crop yields, monitor product quality, process improvements, and improve performance.
  • Increase profits and cost savings: ERP systems can unify and streamline all business operations, and accurate purchasing which leads to greater efficiency and higher productivity. ERP systems allow business leaders to identify waste areas and make profit-making decisions. Improved collaboration benefits both employees and external collaborators. AI insights and automation promise quicker turnarounds, fewer mistakes, and consistent products and services. Both ends of the cannabis ERP equation benefit.
  • Automate manual tasks and workflows: ERPs allow organizations to automate manual tasks and workflows to reduce bottlenecks and mitigate risk. They simplify and streamline data entry, compliance, quality testing, and other tasks of their business central.
  • Tighter controls & security: Cloud ERP solutions offer some of the most stringent security and compliance protections. AWS, IBM, Microsoft, and IBM all work with companies that operate under complicated regulatory conditions. Although the cannabis rules are different, ERPs that excel was designed with complexity in mind and high-stakes regulations.

How To Choose The Right Cannabis ERP Solution For Your Businesses?

The process for choosing the right cannabis ERP is the same as any ERP evaluation. This is a very short list. However, it gives you an idea of how the selection process might look.

Get a holistic view of your business

The first step in selecting an ERP is to get a zoomed-out view of your entire business. It is important to move beyond single-purpose ERPs like seed-to-sale systems and begin mapping all business functions, and processes. This is where you can gain a better understanding of each business function and identify gaps and opportunities for improvement.

Define Your Business  Requirements

After you have mapped your business processes, systems, and personnel, it's time to identify your business requirements and warehouse management. What solutions are needed to maintain end-to-end operations in the current state? And what solutions can you use to fill in gaps and drive improvements to get you to where you need?

A cannabis ERP should generally include the following:

  • Accounting and finance: Any ERP system needs financial data. It is the foundation for everything, from forecasting and budgeting to sales and marketing, procurement, and many other functions.
  • Product tracking and cultivation: To ensure compliance with federal and state regulations, cannabis companies will need a month of preparation, an ERP solution that includes a seed-to-sale component. These capabilities are not available in standard ERPs, so it's important to search for ISV solutions and add-ons or build your own. D365 BC can be integrated with state tracking systems such as Metrc, Leaf Data Systems, and BioTrackTHC.
  • Automated compliance and control: Modern ERP systems rely heavily upon AI, ML, and automation to protect and enforce regulations, branding, internal governance, and compliance. You'll need an ERP system that adapts to changing regulations and tax requirements in the context of the cannabis sector.
  • Logistics and distribution: It is important to ensure that your solution keeps track of all raw materials and finished goods as well as incoming orders. It's a good idea if you ship products to wholesale customers or end customers to make sure that your ERP solution has IoT integration and fleet management experience.
  • Retail & sales: Are you planning to sell products on your own website? How about partnering with delivery services? Selling wholesalers? These strategies may not be in your immediate plans, but you will want the ability to continue to pursue them in the future. You should also consider a POS system that can process and track transactions in person if your dispensary is open.

It is important to remember that these requirements are just a starting point. It is also important to consider the unique services and workflows that exist only within your company.

SMB vs. Enterprise

You'll also need to decide whether you are an SMB or an enterprise. This will affect your choice of core ERP software for cannabis. In the context of Arion ERP, you will be looking at Inventory Management or expertise in Manufacturing  (where there are a variety of Financial perspectives & Operations apps).

Most conversations about cannabis companies tend to lump them in the SMB category. This makes sense as it is difficult to do business beyond the US borders and internationally due to the complex system of laws and regulations. It's possible, but not impossible.

To make the final decision, you will need to consider factors such as your business model, growth projections, and complexity.

Read More:-  Things to Know Before Buying Cannabis Accounting Software

Implementing Cannabis ERP

With greater control of your supply chain, end-to-end visibility, and intelligent automation, your cannabis ERP stands to provide everything you need to respond to changing conditions and make profitable decisions. If you can get success in the implementation process. We'll be sharing a few items you need in your ERP implementation talent pool strategy.

Define Measurable Goals & KPIs

The cannabis industry, like many other industries, is constantly changing. Cannabis businesses must adapt to changing market conditions and increasing customer demand, but unlike other industries, they need to be flexible. It is also about staying current with changes in tax codes, licensing requirements, etc.

A flexible ERP system is essential to ensure your survival in a world of changing regulations, rising demand, uncertain futures, and shifting regulations. It will allow you to manage your business and be able to align your goals, needs, and budget.

It is important to spend time deliberating on building teams and to know what you want from your investment, and how you will measure it.

This step is often overlooked by successful entrepreneur companies. However, it's crucial to have a clear understanding of the desired outcomes in the pre-and intra-implementation periods. It's also important to identify the KPIs that you will use to monitor progress toward those goals. This baseline of successful entrepreneur companies can be used as a starting point and should provide a guideline for what KPIs should look like at each stage.

Last Thoughts

The bottom line, cannabis ERPs are essential for thriving in this highly competitive business environment. Businesses can eliminate bottlenecks, automate manual processes, address issues such as unreliable data and inability to scale up, deal with operational limitations, functional gaps, or inability, and comply with constantly changing laws and regulations.

However, an ERP investment is a serious decision and a substantial commitment. You should choose an ERP application that will improve your overall efficiency, give you the data you need for intelligent decisions, and protect your business from the many risks associated with this industry.

ArionERP is a comprehensive ERP software solution with wide-ranging modules to help organizations manage their clients, employees, administration, and other important business processes. Our clients get help with their most difficult problems, reach strategic goals, and drive business growth for many years

Cannabis ERP: What is it? What makes you require it?

Enterprise resource planning for cannabis is known as cannabis ERP. The original purpose of ERP systems for cannabis was to consolidate manufacturing operations. Back office procedures are now included as they have changed.

For large-scale cannabis businesses wishing to enhance communication and data exchange between departments, a cannabis ERP is an option. Cannabis ERP systems can be utilized to automate processes and enhance departmental communication. You may improve your business decisions by using certain degrees of route optimization of an ERP system that is specifically created for cannabis firms.

Information sharing between the divisions of cultivation, extraction, and retail may be challenging if staff members solely use spreadsheets or email. These manual procedures lack transparency and scalability. They also give accounting and management problems with financial reporting. An ERP system, which consolidates numerous back-office procedures under one roof, provides a solution to this issue.

Advantages Of Using A Cannabis ERP Platform

ERP solutions can increase productivity in your business. A program that is fully integrated has many advantages. Some of the most significant advantages for a cannabis company include the ones listed below:

  • Collaboration is essential for a cannabis business to succeed. Workplace collaboration is more demanding and requires more work. Businesses frequently find that their staff is collaborating in isolation.
  • Total visibility: ERP software offers total visibility to your entire cannabis supply chain and business. ERP software gives you complete access to all critical processes in your company by allowing data to be pulled directly from each department.
  • Better reporting and planning: Management can use operational insights to help with production planning and performance evaluation. An ERP system can quickly produce useful business intelligence reports because it is a single source of truth.

There are three things you should know before you implement an ERP system

  • Too difficult: The implementation of ERP software can be difficult and time-consuming. You will want a committed project manager with technical expertise to tailor the configuration for your company.
  • ERP systems may be expensive and strict. They are also challenging to modify and update. Installation and setup require the assistance of a vendor consultant or specialist. These elements affect the system's price.
  • A new ERP can be challenging to adopt. It can take a while to find it, customize the software, and then integrate it throughout your entire cannabis business. It takes all stakeholders to promote adoption within the organization and to train staff.

How to Lower the Costs of Implementing Cannabis ERP?

By 2025, the market for legal cannabis is anticipated to be worth more than $33.6 billion. Cannabis ERP software features make this possible. The entire process of selling cannabis in offline shops will be legal, compliant, traceable, precise, and manageable with an investment in cannabis ERP.

Sometimes, putting in place your cannabis ERP can be financially disastrous.

Cannabis businesses can reduce the price of ERP implementations and still succeed. You require a qualified project manager to modify, integrate, or update your ERP system across all of your business units and processes.

Additionally, the expert of professional forums will be able to transfer your data and modify the ERP system to suit your company's requirements. The business must undergo training before implementing the cannabis ERP system. The costs of the largest implementation partners will go up as a result of programming jobs.

Identify Your Company's Requirements First, Then Plan

Before you buy and deploy a cannabis ERP system, you must first ascertain your business needs. This is why:

  • The way your firm operates is different from primary people businesses. Avoid settling for a universally effective cannabis ERP. If you don't use certain services and functionalities, you'll wind up spending more money on them.
  • Implementing an ERP system is a difficult process. An ERP project manager, a plan for data transfer and managing changes, and an IT infrastructure with hardware, subscriptions or license counts, integration, add-on features, custom options, and other technical requirements are all necessary. Each component will raise the price.

To establish your cannabis ERP, understand your requirements for efficient sales and create a project plan. Next, contrast the pricing proposals made by several vendors and assess each one's suitability for your particular business needs and positive experience.

By encouraging competition among vendors, you can obtain cheaper prices and stronger negotiating positions which will help sales double. Poor business processes may enable you to save you thousands of dollars annually, depending on the size of your company.

Watch Out For Customization Fees

Finding an ERP system that you can tweak and change to meet your changing business demands as it expands is crucial. However, excessive personalization can raise your overall price, which is typically unnecessary.

Many ERP vendors of the development team divide the customizing process into predetermined steps for the installation. To ensure delivery, each stage is allocated a distinct resource, which raises the overall implementation cost, additional expertise, and additional resources.

Custom coding will be needed for the ERP system and your process to be integrated. This work requires constant upkeep, daily meeting, and improvements. Due to the extensive customization, these upgrades may be expensive and challenging.

Only pay for the features you need. Ask your providers to defend the implementation deliverables, and make sure you leave square feet of space for additional features. This will make sure you only pay for what you use.

 Save Your Resources

Before you adopt your ERP solution, decide on your project's resources. Utilize the knowledge of the ERP consultant by participating in the implementation, which includes employee training. This will guarantee that your entire experience is as positive as it possibly can be.

Considering The Future

What number of users do you require? It is tempting to only pay for a certain number of users to cut costs.

As an add-on service, adding users later could increase the implementation cost. You can negotiate for a larger user package by implementing the entire user count right away.

With a little planning, you can estimate the impact of your cannabis ERP deployment. This is accomplished by contrasting the early expenditures with long-term ROI. With this knowledge, you can make decisions that initially seem expensive but end up being very profitable in the long run.


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Your operational costs will go down, collaboration, efficiency, visibility, and reporting will all improve, and planning and coordination will go up. A costly ERP implementation may result from a hasty or unprepared implementation.

You may benefit from your cannabis ERP system without endangering your company. Utilize your resources by the needs of your company. Hire an expert and an excellent partner in work to guide you through the full procedure. Be sure to assess your return on investment before choosing a vendor. You can use these suggestions to make the most of your implementation.