Five Challenges Facing Multi-State Operators That Can Be Overcome with an ERP
Operating a cannabis company across multiple states is no easy feat. Because each state has its own rules around growing, packaging, testing, marketing and more, it’s extremely challenging for operators to plan business processes around constantly shifting regulations.
Many cannabis companies across the US operate as multi-state operators (MSOs) and own products or dispensary brands that are available in multiple legal state markets. While MSOs attempt to standardize operations to increase efficiency and profitability, they may end up with a portfolio of individual brands operating in virtual silos from one another. That’s because cannabis rules across state lines can be so detailed, that standard operating procedures can’t effectively accommodate the nuances of state-specific regulations. MSOs, then, are left with the inability to standardize their practices, ingredients and methods, leading to organization-wide inefficiencies and a lack of visibility.
In this blog, we look at the future of the cannabis industry in the US, how MSOs can plan for the potential federalization of cannabis laws and the role technology plays in preparing for future regulatory changes. We also look at the ways an Enterprise Resource Planning (ERP) solution built for the cannabis industry can help MSOs overcome five common operating challenges.