Going Beyond Traditional Seed to Sale Solutions

The challenge of managing a business with isolated systems

When cannabis businesses first launch, they tend to run their operations using multiple systems. They start with seed to sale software and an entry-level accounting solution like QuickBooks.

They also must work with their state compliance tracking systems, such as Metrc.

After deploying their seed to sale solution of choice, the business likely created useful operational processes—workflow process maps based on what they need from the state compliance tracking system.

However, what they need to do in the state tracking system may have forced them into specific processes that don’t align with what the management team really wants to do—as the business product process goes from mothers to plants to bulk product, intermediate items, and then items.

These seed-to-sale processes may work well at first. But as the business grows, management wants to expand upon them to ensure the entire business can use the system beyond the specific cannabis task, like non-cannabis inventory visibility and managing the supply chain.

That’s when they turn then turn to Excel or Google spreadsheets.

But that adds even more confusion as files can’t be accessed across the company.

The marketing, sales, cultivation, production, and accounting teams don’t know what’s going on in the other departments.

Managing the business with so many disconnected systems mean the staff needs to contend with a “no single source of truth” situation. They can’t turn to one system where they know the data is accurate and current. They also spend a lot of time rekeying data from system to system.

This inefficiency means that getting real-time inventory visibility and other key metrics requires daily acts of heroism just to track down the information and keep the business running.

The Answer: ERP

The answer to these challenges is Enterprise Resource Planning (ERP). By upgrading to an ERP solution, cannabis operators can go beyond their seed to sale solution to integrate all business functions and provide real-time data across the company—on demand.

The leading ERP solutions provide planning, management, and reporting capabilities across finance and accounting functions as well as marketing, sales, production, inventory, and supply chain management. All the data for all these functions is one system—that single source of truth, to which everyone in the business has access.

The key is to identify an ERP solution that also layers in the seed to sale functionality to cover cannabis-specific processes from cultivation through distribution.

After you determine it’s time to migrate your operation to an ERP solution, the next decision is which one. Before delving into researching products, do some internal work first.

This includes identifying your Why. What’s your motivation?

Next, document your current processes—where they are today and where you want to go. This identifies your required features at a high level. Also, consider the major pain points in your processes and what you need to do to remove them.

From there, what is a realistic scope, budget, and timeline? When answering these questions, consider that your internal team members still need to fulfill their regular job responsibilities.

To bring the project to successful completion, you should collaborate with a partner who will see you all the way through. Make sure they have both ERP and cannabis industry expertise. This will minimize the risk of the project failing and keep you on time, in scope, and within budget.

Another high-level consideration is to break up deployment into phases. Perhaps implement the financials first, followed by purchasing, inventory, cultivation, and production. The transition will require careful planning and a commitment of time from your internal team.

That’s why it’s critical to find a sure partner who will guide you through the entire process.

A solution designed for the cannabis industry

An ERP solution that many cannabis operators have turned to is SilverLeaf, built on Microsoft Dynamics 365 Business Central, from Velosio.

The solution even integrates with the entire Microsoft suite of tools. SilverLeaf also runs in the cloud, giving cannabis businesses the benefits of world-class security and disaster recovery.

Growers and processors across the U.S., operating with multiple business entities and multiple states rely on SilverLeaf for several key functions. These include full tracing (forward and backward) of the unique tags that can be linked to specific lots and batches. Users can see the origin of where a lot batch came from and where it is today.

Another key feature is ad hoc consumption. If you run raw material through a hopper and end up with an excess, you can scan the tags and immediately consume the excess as part of an existing production order.

Inventory management is a snap. You can track multiple strains from one product and get alerts when it’s time to replenish. You can also analyze strain costs and forecast when it’s time to order custom labels and packaging.

SilverLeaf also integrates with state track and trace systems like Metrc so that data, such as lab testing results, flows in automatically. Plus, cannabis operators can streamline the process of managing quarantines, tracking lab costs, and managing certificates of analysis. And if there’s a product with quality or compliance issues, you can trace it back to the lot and the lab results.

For the sales team, they can speed up order entry with a real-time inventory view to order quantifies for specific strains and variants and specific cannabinoid percentages. The cultivation team can predict yield by location and by strain; track by tag; forecast output while factoring in seasonality; and track mother plants and where clones end up going.

Final thoughts

To learn more about SilverLeaf, check out this webinar, ERP: Seed to Sale and Beyond by Velosio cannabis industry experts Sara Silver and Ben Marchi-Young.

You can also learn more about ERP implementations by downloading A 6-Step Guide to ERP Implementations for Cannabis Operators.

Frequently Asked Questions

What are the challenges of using multiple isolated systems for cannabis operations?
Managing cannabis business operations with isolated systems such as seed to sale software, QuickBooks, and state compliance tracking systems like Metrc can lead to inefficiencies. These systems often force businesses into specific processes that may not align with management’s desired workflows, causing confusion and a lack of real-time data visibility across departments.

How can an ERP solution benefit cannabis operators beyond traditional seed to sale software?
An ERP solution integrates all business functions, providing real-time data across the company. It offers planning, management, and reporting capabilities for finance, accounting, marketing, sales, production, inventory, and human resources. This creates a single source of truth accessible to everyone in the business, streamlining operations and enhancing efficiency.

Why is SilverLeaf and Dynamics 365 Business Central a suitable solution for cannabis businesses?
SilverLeaf, built on Microsoft Dynamics 365 Business Central, is designed specifically for the cannabis industry. It integrates with the Microsoft suite of tools and state track and trace systems like Metrc, providing full lot tracing, inventory management, ad hoc consumption, and real-time data visibility. SilverLeaf helps cannabis operators streamline processes, manage compliance, and improve overall business operations.