Challenge 1: Compliance is Tricky and Always Changing
Let’s start with one of the biggest headaches—compliance. The cannabis industry has a mountain of rules to follow. And guess what? Those rules don’t stay the same for long. States and countries have different laws, and sometimes things change overnight. One day you’re fine, and the next, there’s a new regulation that you have to follow.
For example, in many states, cannabis businesses are required to use Metrc, a system for tracking and reporting cannabis inventory from seed to sale. If your ERP system doesn’t integrate smoothly with Metrc, you could end up duplicating work or, even worse, making errors that could lead to fines or losing your license.
Imagine you’re running a dispensary in Colorado. You’ve got Metrc tracking every plant, but if your ERP can’t connect to it, you’ll be stuck doing double data entry. That’s a waste of time and can lead to mistakes. This is why finding an ERP that not only stays flexible with changing regulations but also integrates with tools like Metrc is crucial.
At Alchemy 365, we’ve seen firsthand how important it is for an ERP to be adaptable and capable of working seamlessly with compliance systems like Metrc. It can save you hours of manual work and reduce the risk of falling out of compliance.
Challenge 2: Getting Everyone on the Same Page
Picture this: You’ve just installed a new ERP system. It’s supposed to make everything easier—tracking sales, managing inventory, handling payroll. But then you realize that half your team doesn’t know how to use it. It’s like giving someone a new smartphone without showing them how to unlock it.
One of the biggest hurdles with ERP implementation is training. Your team needs to know how to use the system, or it’s just an expensive piece of software sitting there. And in a cannabis business, where you’ve got people handling everything from growing plants to selling products, getting everyone up to speed can be a challenge.
That’s why when you’re thinking about an ERP, training should be a big part of your plan. It’s not just about picking the right software, but also making sure your team knows how to use it. We’ve seen companies run into this issue time and time again, but with the right approach, you can avoid it.
Challenge 3: Data, Data, and More Data
Here’s another problem: data overload. Cannabis businesses, like any business, generate a ton of data. You’re tracking sales, inventory, customer information, plant growth stages, and more. An ERP system is supposed to help you manage all that data. But sometimes, there’s just too much information, and it becomes overwhelming.
Imagine your system is tracking every gram of product that moves through your business. That’s great, but if your ERP isn’t set up to handle all that info in an easy-to-read way, it’s like trying to find a needle in a haystack. It’s crucial to have an ERP that can organize your data in a way that makes sense for you.
At Alchemy 365, we’ve worked with businesses that had so much data coming in that they didn’t know where to start. That’s where customizing your ERP to your specific needs can make a world of difference.
Challenge 4: Cash Flow Constraints
Let’s face it—cannabis businesses don’t always have the easiest time with cash flow. Because of federal regulations, many cannabis companies have limited access to traditional banking. This can make it hard to invest in big projects, like an ERP system.
The truth is, implementing an ERP isn’t cheap. There are upfront costs, training costs, and then the ongoing fees. If you’re a cannabis business that’s strapped for cash, this can feel like a huge barrier. But it’s important to remember that the long-term benefits of an ERP can save you money by improving efficiency and reducing costly mistakes.
One way to get around this challenge is by finding a system that fits your budget without skimping on the features you need. We’ve helped companies find affordable ERP solutions that don’t break the bank but still get the job done.
Wrapping It Up
Implementing an ERP system in a cannabis business comes with its own set of unique challenges. From staying compliant with ever-changing laws to training your team and managing data, there’s a lot to think about. But the good news is that with the right approach, you can overcome these obstacles.
At Alchemy 365, we’ve worked with cannabis businesses to find ERP solutions that fit their specific needs. We understand the challenges you face, and we’re here to help you navigate them.
If you’re ready to take the next step, or just want to learn more, reach out. Let’s chat about how you can make ERP work for your cannabis business without all the headaches.
