How to Increase Productivity by Streamlining Your Cannabis Business Operations
The cannabis sector in North America is drastically changing. While the industry welcomes abundant cannabis-friendly regulations, businesses must streamline their operations and achieve maximum customer satisfaction. Many business owners realize the need to integrate business intelligence and create efficient processes to increase the productivity of their businesses. As the industry grows in size and sophistication, the demand for cannabis and cannabis-based products is rising rapidly.
However, more is needed to guarantee better results when it comes to increasing productivity. While most people are used to the traditional business model, having a lean or streamlined business operations system comes with plenty of benefits that ultimately increase the business's overall productivity. With streamlined business operations, a business owner can quickly identify the customers’ needs, examine the various processes and eliminate any resource that has zero value to the business.
While the lean or minimalistic approach to business management is super practical, it’s also very challenging to implement especially when dealing with a big company. Smaller companies can quickly implement a lean approach to streamlining their business operations. However, regardless of the size of your company, executing a lean business approach to increase productivity will only be possible with complete visibility of business processes and access to company data. Luckily, many software products are available for cannabis businesses to streamline their operations. With the best software, you will have an integrated solution to help you manage growth by streamlining operational efficiency.
Using SAAS for Streaming Cannabis Business Operations
One of the essential software for cannabis businesses is Enterprise Resource Planning (ERP) software. There are several top cannabis industry-specific ERP software for business owners. Unlike the general ERP, a cannabis industry-specific ERP will facilitate centralized data and communication in the departments, all under one platform. Cannabis businesses have more particular requirements compared to other companies. Hence having an industry-specific ERP means connecting compliance, finance and operations, quality, seed-to-sale, and traceability. At the end of the day, the business will have a collective and well-organized set of data and workflows for the whole team.
Cannabis-specific ERP software minimizes time-consuming business operations, eliminates waste of resources, and decreases inventory at hand and administrative activities. But how can you achieve maximum productivity with streamlined business operations with ERP.
Accessing information promptly
Real-time access to information is essential when making short-term and long-term business decisions. With an ERP, cannabis business owners have end-to-end monitoring and management of their business operations. They have access to data from every step of their supply chain. Every decision-maker in the business has clear visibility of the current and past performance. The information collected will help make every business decision and determine the best strategies for effective productivity.
Costing Information
Managing overall costs in every business is vital. The main goal of every business is achieving maximum customer satisfaction and revenue, at the least possible cost. Cannabis businesses need a comprehensive costing functionality, allowing business owners and employees to track every expense in the supply chain. With ERP software, users can see the inventory and any costs attached to the stock. You can effectively track the business inventory movements and expenses using the traceability functionality. Additionally, you can compare the standard costs with the actual costs incurred by your business and thus find the most effective ways of reducing costs. Costing information is the central part when it comes to cost management.
Identify the sources of resource waste.
Lack of efficiency in business operations will have a ripple effect on the entire business and cause a waste of resources in every step of the supply chain. Wasting resources, in turn, causes a decrease in productivity and increases the cost of production. The cannabis industry has different sectors, ranging from cultivation to retail; each sector thrives in achieving minimal waste of resources. When using an ERP, you can quickly identify the sources of waste and accurately account for and track the waste. The information is essential for regulatory reporting and inventory management. Using the collected data, business owners and staff can quickly develop strategies to eliminate resource waste while enhancing the business's productivity.
Efficient Production Planning
Even though the cannabis industry is still new and has an ever-growing demand, it’s essential to have an efficient production plan and schedule. With an efficient production plan, the business can avoid overproduction and underproduction depending on consumer demand. The demand for cannabis and cannabis-related products changes depending on various factors; thus, a production plan is paramount. Business owners can use the ERP to forecast product demand and make decisions on production. They can use historical data, demand expeditions, recent periods of demand, and forecast errors to make accurate forecasts. Increasing the accuracy of projections will achieve better planning in production and increase productivity, thus enabling the business to achieve its goals effectively.
As you have read in this article it is not as straightforward as other industries. Operating a cannabis business is extremely difficult, and not having the know how can really affect your bottom line. Vende POS is made to help its clients run the business they have always wanted. Providing you with all the necessary tools for your business to succeed is our goal. Schedule a demo with us today and see how running your business on the Vende platform can help.