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The cannabis industry is unique in that it is one of the few industries where owners and operators strive for vertical integration. For the Cannabis Industry, vertical integration means one organization owning controlling interest in all licenses related to the production, the processing and sale of their product. In Industry terms, that’s the Grow, the Lab, the Kitchen, the Packaging and the Retail Ops all under one roof.

 

In most other industries, putting all your eggs in one basket by being vertically integrated would be considered a difficult and risky strategy. It means taking control and responsibility for several disparate and highly specialized varieties of business operations and managing all the necessary personnel; while running each of these divisions concurrently and in sync with each other, because each operation feeds the next; while ensuring each division of this complex entity can communicate effectively with the others; while tracking relevant KPI’s, a huge supply chain and all its costs, while following SOP’s that will crosscut agriculture, food production, industrial extraction, fulfillment and retail operations; while most importantly maintaining compliance in the most tightly regulated industries on the planet.

 

When you write it down, it sounds crazy.

 

But for cannabis companies to both maintain total compliance and maximize the potential of their licenses, it’s often necessary for one party to handle every single stage of the production path, from seed to sale. Fully vertically-integrated cannabis companies need an all-in-one software solution that can track every process in their facility, from cultivation to lab/extraction to manufacturing and retail.

 

It’s a widespread misconception that state-mandated traceability systems will help operators run their businesses. There’s an important distinction between a cannabis ERP tool like 365 Cannabis and state-mandated systems like METRC, BioTrack or Leaf. State tracking systems are only used to capture five main data points: plant counts and stages, current inventory, the actions and conversions performed on that inventory, any transportation from one license to another and records of all sales. While essential for maintaining compliance, these five data points are the bare minimum when it comes to traceability. Seed-to-sale alone is not enough to help cannabis entrepreneurs make meaningful business decisions and unlock their full potential.

 

Grow Beyond the Limits of Seed-to-Sale

 

Enter 365 Cannabis, one of the innovative leaders in the cannabis industry we’re proud to partner with at Delta9 Systems. Based in Las Vegas, 365 Cannabis is a comprehensive vertically integrated ERP (enterprise resource planning) solution built on the Microsoft Dynamics platform specifically for the cannabis industry. This technology enables cultivation, manufacturing and dispensary operations to manage, track and report on every aspect of their day-to-day processes throughout the entire supply chain — all in one convenient platform.

 

This software integrates with basic seed-to-sale software, allowing Producers and Processors to record and report those five crucial data points to the state, while at the same time capturing the vast amount of real-time, actionable data generated by their daily operations.

 


Big Data, Big Benefits


What’s the value of going above and beyond to collect, store and analyze data in your cannabis business? Here are a few areas where complete traceability is critical:

 

Production Scheduling

Especially as a cannabis operation expands, effective scheduling, planning and clear communication are mission-critical functions. Large-scale gardens need to be in near-perpetual harvest to be profitable, which means each area of cultivation has to be well-organized and productive. With an ERP in place, managers can collect the incredible amount of data coming in from the mother, propagation, vegetation, bloom, and harvest rooms and gain visibility of the entire process. Knowing exactly what’s happening in the garden at all times ensures that “happy accidents” can be repeated and any mistakes or efficiencies can be eliminated.

 

Recalls

Product recalls can derail a cannabis business, resulting in the loss of entire batches of product and potential sales. The truth is, if you don’t have complete cannabis traceability controls, you don’t have the complete picture of exactly when a product became defective, how it happened and which products were impacted. A cannabis-specific ERP will help minimize the effects of recalls, allowing you to prove the chain of custody and protect your brand reputation. Complete traceability also helps cannabis businesses establish and uphold safety standards that limit factors leading to compliance and health risks in the first place. 

 

Research & Development

In cannabis cultivation, even minor adjustments can affect overall yield. As you experiment with different atmospheric conditions or new nutrients and equipment, an ERP like 365 Cannabis will make it possible to analyze all the granular data and determine what’s working and what’s not. Paired with your financial performance, this data can help you determine your true cost per plant and the ROI of any new additions to your facility. Knowing the real numbers behind your everyday operations will help you identify patterns, predict trends, plan for the future and make better business decisions as you scale.


 

Customizable for Your Growing Business


365 Cannabis is a scalable solution that’s customizable for cannabis businesses of any size, vertically-integrated or not. You can use the system in its entirety or choose among its six core modules (financials, cultivation, processing CRM, distribution and retail) and add more when your business grows.

 

At Delta9 Systems, we’re proud to work with the 365 Cannabis team to connect our customers to the software and hardware that support their business workflow and help them achieve their goals.

 

Want to learn more about 365 Cannabis? Schedule a demo today!

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Chris Guthrie
Chris is the General Manager of Delta9 Systems, a division of General Data Co. He is an expert in the cannabis industry, having participated in the birth of the cannabis industry in Washington, and has operated one of the first and oldest medical dispensaries in Seattle. For a decade, Chris has participated in the design and managed the construction of dozens of indoor gardens, and has been involved in cultivation, processing, retail operations, as well as industry activism.
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