Cannabis and ERPs – The Business Side of Progress

December 06, 2021

As the Cannabis industry grows in the United States, regulations and traceability are becoming more important than ever. Thus, Enterprise Resource Planning (ERP) software has become crucial to the cultivation, production, and distribution of cannabis and cannabis infused products. A good ERP will make managing your Cannabis Business easy; however, there are some key features to look for when deciding which ERP is best!

Inventory and Production Management

Mishandling your inventory could be lethal to a cannabis business, but the right ERP can ensure that your business runs smoothly. Finding an ERP equipped with forecasting capabilities with lead times factored in for individual ingredients is essential for a successful company. Particularly in the Cannabis Industry where plants need time for cultivation and harvesting, an ERP that alerts you to reorder when an item reaches pre-set levels, has the flexibility to meet a company’s preferences (e.g., barcode scanning, manual or automated purchase orders, pull strategies, etc.), and the ability to “quarantine” ingredients is necessary.


Your ERP must be able to provide a complete forwards and backwards traceability report for inventory items at the push of a button. There is no middle ground for this situation; if the ERP you are using is not able to provide an accurate, unalterable trace for your items it is time to upgrade. When choosing an ERP, selecting a mobile friendly, cloud-based option will allow managers to run traceability anytime from anywhere as soon as the need arises.

Integration Capabilities

Certification platforms such as Metrc are required in the Cannabis Industry for most states and accounting programs are widely used across all industries; why not integrate these platforms with your ERP? Having the ability to integrate with an ERP will help prevent double entry of data, saving you time and reducing the chance for human error.

Control and Security

When it comes to the Cannabis Industry (or any industry that produces products ingested by humans) security and substance control is of the utmost importance. Having a secure ERP system can help ensure your products are safe for your customers. It should allow you to set permissions for users, prohibit unauthorized actions, and have an unalterable activity log for managers to monitor all activity within the system. Remember, one of the best investments you can make for your cannabis business is taking the time to research and find the right ERP for you!

Key Features at a glance:

  • Allow inventory/production management any time, from anywhere
  • Full traceability and reports at your fingertips
  • Unalterable activity logs for everything in the system
  • Integrations with other platforms such as Metrc, Sage Intacct, Quickbooks, LeafLink, and more
  • Accommodation of vertically integrated companies
  • Compliance paperwork management
  • Accurate financial analysis

Photo by Martijn Baudoin on Unsplash