Today, we are taking a look at the business case for retail cannabis ERP. We know cannabis retailers are on the front lines, interacting with consumers, driving the industry. As such, they understand better than most the demands and challenges involved in growing a successful cannabis operation. In addition to managing and optimizing valuable inventory and maintaining a point-of-sale (POS) system, cannabis retailers need what all businesses need: access to accurate, timely business information, insight into their customers’ buying behaviors, and solid financial reporting. A cannabis-specific ERP solution can provide those components in an integrated, scalable package.
Despite the benefits an ERP solution brings to retail cannabis businesses, many continue to cobble together a patchwork system of entry-level accounting software, spreadsheets, seed-to-sale tracking, and—in some cases—stand-alone POS systems. Here we look at the value retail cannabis ERP brings to a retail operation.
Data you need, when and where you need it
While quick access to actionable data is important to any business, in the fast-paced, rapidly-changing cannabis marketspace, such data is invaluable. Cannabis ERP applications centralize the data from across and within your organization, making it easy to access, analyze, distribute and secure that data.
For cannabis retailers, this data may include:
- Finance and Accounting
- Human Resources
- Customer Relationship Management (CRM)
- Inventory and Product Costing
- Procurement Management
The more you expand your organization, the more difficult it becomes to share and synchronize business data (think price changes and stock on hand, for example) across all locations, resulting in information silos, duplicate entry, increased errors and overall inefficiencies.
Optimize inventory holdings
Cannabis products are much like many Fast-Moving Consumer Goods (FMCGs). Selling FMCGs creates a dynamic, competitive environment for margins — price wars and flash sales are common. Cannabis retailers need the ability to closely monitor their inventory stocks, both in real-time and with trends over time. What products are selling, which are not? Which are the most profitable, and which are losers? Retail Cannabis ERP provides the answers to these questions and more, providing deep insight into your inventory holdings:
- Know what you have in real-time to avoid stock outs
- Analyze trends and forecast demand to gain an edge with supply chain effectiveness
- Reduce overhead and excess inventory that doesn’t move as fast or make you money
Build an exceptional customer experience
Customer experience is king in retail, and cannabis retail is no different. Creating a brand based on exceptional customer experience is more than just a good idea — it’s a profitable idea. Cannabis ERP software helps you create a consistent, differentiated customer experience by delivering insight into customer buying habits and converting those insights into superior business processes:
- Capture customer data, preferences, and activities
- Track and monitor long term value
- Gain new customers
- Build a targeted brand
- Enhance demand forecasting
- Increase brand loyalty
Set yourself up for growth
The opportunities for cannabis retail are enormous; annual cannabis sales were over $6 billion in 2017, and estimated demand pushes $60 billion. By the end of 2019, sales of legal cannabis could nearly overtake those of Netflix and McDonald’s combined. Clearly there’s room to grow and flourish for cannabis retailers prepared to capitalize. Cannabis ERP software can set your business up for success, whether it includes expanding to multiple stores or attracting investors in the following ways:
- Standardize key business processes
- Build best practices
- Provide visibility across business areas
- Ensure compliance
- Support agility and ability to change with the market
Choose Retail Cannabis ERP
The cannabis retail market is ripe for growth for the foreseeable future. Savvy cannabis retailers are making calculated investments in their infrastructure to ensure they get their piece of the pie. Cannabis ERP can help you grab a larger slice. Talk to one of our cannabis ERP experts to get started.