For many manufacturers, finding the right cannabis manufacturing software feels like a daunting task. Not only must they efficiently manage the organization, management, and maintenance of their facilities, but they need up-to-date information regarding inventory, staff, and compliance regulations as well. The right cannabis software for extractors and infusers alleviates some of this burden—but how can they identify a good software system in an oversaturated market?
We have put together a list of features that manufacturers should look for when vetting software for their operation.
1. Process Management and Standardization
Cannabis manufacturers have to grapple with highly specific—and highly punitive—regulations. Since marijuana is still federally illegal, it is vital that any cannabis manufacturing organization has a system in place to ensure that its production is both standardized and meeting the compliance regulations set by their state or municipality. A well-developed cannabis manufacturing software will enable process management and standardization to ensure its users and their products are up to snuff. This involves monitoring key aspects like:
- Labor duration
- Machine hours
- Native directions
- Standard operating procedures (SOPs)
A cannabis manufacturing software that tracks these key aspects can typically provide your business with the structure it needs to succeed and scale.
2. Non-Medicated Inventory Management
THC-infused edibles are becoming more and more popular and wide-ranging in their variety. Gummies, brownies, cookies, candy, chocolates, powders, drinks, vapes, oils, balms, lotions – they all have non-medicated ingredients that need to be tracked to ensure they are following the Good Manufacturing Practices (GMPs) to stay compliant with regulations. While tracking medicated ingredients is incredibly important to manufacturers, managing non-medicated inventory is just as important when maintaining high-quality food safety standards and providing transparency to customers.
Operators should ensure their cannabis manufacturing software system will track non-medicated inventory, such as butter, eggs, sugar, flour, etc, at the same level of precision as medicated supplies, including tracking expiration dates for all medicated and non-medicated ingredients. Knowing when a batch of brownies or cookies has gone bad can prevent serious ramifications from selling expired goods, and having to manage recalls.
3. Cost of Goods (COGS) Tracking
As with any business, understanding and tracking the cost of goods (COGS) is important for a cannabis business’s financial success and can help reduce an operation’s taxable income. Unlike other industries, cannabis-related businesses are still illegal according to federal law, and as such, they cannot make any deductions on Schedule I controlled substances. They can, however, claim certain COGS deductions. In fact, the IRS has created a tax form that applies specifically to the cannabis industry: Section 280E. This addendum has caused many headaches for those in the industry, as it rules that any business participating in the manufacture or sale of cannabis products cannot deduct any business expenses from their gross income, upping their tax liability. However, cannabis businesses can deduct COGS, including administrative and inventory costs.
For this reason, it is crucial that cannabis business owners ensure whatever manufacturing software they choose for their operation can accurately track COGS. Without it, they may be relying on a system that will leave their organization exposed to a loss in revenue.
4. Recipe Management and Standardization
Cannabis manufacturers continually come up with new, creative ways to infuse THC into edibles, and the industry is full of a wide variety of products. Consistency is key for consumers so they can safely and reliably dose their medication. If operators rely on cannabis manufacturing software that does not prioritize recipe management and standardization, consistency may be an unattainable goal and could cause unwanted and unpredictable side effects for the consumer. When a seed-to-sale software does incorporate recipe management and standardization, it allows the organization to:
- Combine medicated and non-medicated ingredients with ease
- Build standard, easy to replicate recipes
- Track packaging costs in a sustainable way
5. Dosing and Titration Services
As any cannabis manufacturer knows, the correct dosage is a must-have for products to be labeled, sold, and consumed responsibly. Often, edibles have a target dose of THC that must be within certain standards to meet the legal requirements of the industry. Oil potency levels must also fall within the approved range if a manufacturer wants to keep their license to operate.
Software made specifically for cannabis extractors and infusers will have dosing and titration functionality. This is important, not only for ensuring they produce the best batches possible but also for maintaining compliance standards required by their state or municipality. After all, in the cannabis industry, it is not a question of if your cannabis business will be audited, but when.
6. Ease-of-Use
Just because seed-to-sale software for manufacturers has all of these much-needed features, ease-of-use is an important aspect to consider. A system should not only perform the functions needed but should do it in an intuitive way that makes workflows easier and more streamlined. This also lowers the chance of user error, acting as a guardrail against common mistakes regarding inventory or staff use. An overly complicated system may confuse employees or make finding the correct inventory too complex and time-consuming.
7. Waste Tracking
Waste tracking is one of the most important aspects of keeping a cannabis business compliant. Organizations face huge fines and even the threat of closure should they fail to comply with state-mandated waste tracking procedures. One of the most common errors in waste log tracking is the reliance on traditional methods. It is common for cannabis manufacturers to use a simple spreadsheet—or worse yet: a physical notebook—to keep track of their production waste. This increases the risk of the loss or corruption of this important data.
Seed-to-sale software, however, can help minimize that risk. With the right features, it can manage all aspects of waste tracking, including which employee managed it, what the waste was, where it came from, and when and how it was disposed. Given the ramifications of improper waste tracking, this feature is particularly important for cannabis manufacturing software to provide to customers.
8. Reporting and Analytics
Reporting should not require sifting through massive amounts of data every day. Leading cannabis manufacturing software should offer interactive, easy-to-use dashboards that include tracking for raw ingredients, finished products, staff interactions, the accumulated cost of goods, input and output reports, and more. With the right system, these reports can be drilled down as granularly or expansively as needed. This detailed look reveals efficiency gaps and training opportunities, which can lead to overall operational improvement.
Additionally, it should be possible to configure these reports into understandable, actionable insights to increase efficiency, drive revenue, and make better business decisions.
9. Government Compliance
Cannabis industry regulations require that both government and businesses monitor every aspect of production, extraction, and infusion. Operators should choose a seed-to-sale software system that integrates with their state-mandated track-and-trace software to minimize double-entry of data and stay compliant.
Cannabis rules, regulations, laws, and licensing requirements vary greatly from state to state, and can even differ by county. The lack of standardization is even more vast on an international scale. Identifying a software system that takes local, state, federal, and international compliance seriously is key for any cannabis business’s continued success. Specifically, for manufacturers, having features like built-in alerts that can make staff aware of near misses on compliance procedures can head off major problems before they occur.
10. Easy Onboarding
Bringing on a new cannabis manufacturing software can be an overwhelming and time-consuming process—but it doesn’t have to be. Operators should spend time vetting the software vendor themselves.
Here are some key aspects of the onboarding process that decision-makers should consider for a pain-free onboarding process:
- Fast time to adoption: It should not take months before operators can start using the system to improve their manufacturing processes. They should look for software that offers fast but thorough onboarding so they can hit the ground running.
- Bilingual onboarding team: Spanish-speaking customer support shows the company has an international mindset. Decision-makers should look for bilingual support, even if their company is majority English-speaking.
- Role-based recorded training: There are many different roles within an extraction or infusion operation, and each role has a different set of responsibilities. A software onboarder should take into account each of these different roles and tailor their training to match their workflow.
A vendor should also provide clients with ongoing support from a team customer success advocates who can suggest proven strategies to scale a business in addition to helping with traditional support requests.
Choosing a manufacturing software can be confusing, time-consuming, and can cost businesses thousands of dollars if a poor choice is made. Cannabis business owners should fully vet their list of potential software vendors to ensure they are choosing a system that not only pays for itself with time-saving functionality but also partners with businesses to ensure overall success.
If you’re looking for cannabis manufacturing software that offers all of these features—and more—check out what MJ Platform has to offer. Reach out to our team for a live demo.
