Historically, technology played a minimal role in the growth, production and distribution of cannabis. However, in recent years, as the industry has grown, it is clear cannabis-specific technology has an important part to play.
There are tools for point-of-sale, ecommerce, HR and payroll, accounting, compliance and more. Depending on whether you are a cultivator, manufacturer, retailer or vertically integrated, you may need some or all of these tools to support your business. The idea is that all these tools should integrate together to create a seamless experience and make running your business easier. The problem is not all of these tools “talk” to each other.
That is where a cannabis software platform with an open API can make a difference.
What exactly is an API?
An Application Programming Interface, or API for short, enables companies to open up their applications’ data and functionality to external third-party developers, business partners or internal departments within their companies. This allows services and products to communicate with each other and leverage each other’s data and functionality through a documented interface.
If you are not a programmer, that probably sounds complex and doesn’t mean much to you. A cannabis API, in its simplest form, allows two applications to connect with one another to access data.
To understand how an API facilitates your cannabis business, it helps to look at how your compliance software works with all of the third-party service vendors within the cannabis industry. For instance, using an API to integrate your point-of-sale system with your online menu provider helps you simplify workflows, avoid dual entry and keep track of your inventory in real-time.
Open Loop vs. Closed Loop API in Cannabis Software
Now that you have a basic understanding of what an API is, and how it can be applied to the cannabis industry, it is important to note the difference between the two types of APIs – closed loop and open loop. There is merit to each approach.
The main difference between closed loop and open loop APIs has to do with access. Closed loop APIs help developers maintain control. Typically the company is looking to keep development in-house in order to retain control and added security over their system.
Open loop APIs offer greater flexibility. Developers can be more creative, as they aren’t locked into a particular system. As your cannabis business grows you may find your software needs changing. Having an open API will make it easier for you to scale. It is also typically more cost effective.
Which API is Best for Your Cannabis Business?
You want to go with a solution that can grow along with your business. You also want to have the flexibility to work with the companies you choose. We know everyone has preferences on which service providers you want to work with to ensure your cannabis business is a success. With MJ Platform’s open API ecosystem, we allow you to pick and choose who you want to work with, from your on-line menu provider to your cashless payment vendor. Your seed-to-sale solution should not dictate which other companies you have to do business with.
We have over 80 integration partners. Open access to API keys means any partner can integrate into our system. We give you the freedom to choose to work with any vendor that best serves your business structure. At MJ Freeway, we build the connection so you don’t have too. Interested in our open API ecosystem? Visit our request a demo page and select “Integrations with Partners”” to learn more.
