Why can’t you just use spreadsheets? In case you (or your boss) want an explanation to the mother of all new software blockers. The answer is not that you can’t use spreadsheets, because you definitely can. But spreadsheets are not a system that scales. They are also not designed to manage your inventory, report on compliance, or track COGS. They don’t offer integrations, automations, reporting, user permissions, or any of the other tools that help a cannabis business grow and thrive.

The Five Essential Cannabis Software Types

This guide dives into the six critical software categories that cover every aspect of the cannabis supply chain, from cultivation to sales. Whether you're a small grower or a sprawling, multi-state operation, understanding these tools will help you build the perfect technology stack.

From Seed to Sale

The primary function of seed-to-sale software is traceability. RFID tags are the most basic version of these systems. These tags stamp unique identifiers on each plant to differentiate between plant and package, medical and recreational use. State benefits like Missouri's free RFID tags highlights the critical nature of maintaining traceability throughout the cannabis lifecycle.

Other seed-to-sale systems range in functionality from basic compliance reporting with Metrc to offering insights into live inventory status:

• Cultivation Management: Streamlines the cultivation process, enabling precise tracking of plant location for effortless management.
• Manufacturing Management: Takes charge of the entire manufacturing journey, from harvest to final product, ensuring seamless oversight.
• Distribution Management: Enhances order efficiency with real-time order taking and processing, coupled with inventory updates and order fulfillment automation.
• Retail Management: Empowers retailers with the tools to oversee costs, profit margins, budtender performance, and other vital retail metrics.
• Inventory Management: Ensures every cannabis product is distinctly marked with barcodes and unique identifiers, keeping the inventory documented.

Business Management with ERP Software

Enterprise Resource Planning (ERP) software for the cannabis industry offers a holistic solution that extends beyond the capabilities of seed-to-sale software. 

ERP software is particularly beneficial for medium to large-scale cannabis operations, providing a superior level of management control and efficiency.

• Finance and Accounting: ERP systems let you track financial transactions, manage expenses, and plan for growth with enhanced accuracy. This comprehensive financial oversight allows for more informed decision-making and asset management based on detailed data analytics.
• Inventory Management: Efficient interaction with suppliers is crucial for maintaining product availability. ERP solutions streamline this aspect by accurately tracking both cannabis and ancillary inventory levels, ensuring timely replenishment to match the dynamics of demand and supply.
• Regulatory Compliance: Given the stringent regulatory environment surrounding cannabis, businesses must track their products from seed to sale. A robust ERP system comes equipped with advanced tracking and reporting functionalities, simplifying compliance and regulatory reporting requirements.

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Point-of-Sale (POS) Systems

A Point-of-Sale (POS) system is a combination of hardware and software that allows you to accept payments from customers and make sales. POS, retail, or dispensary software allows for all types of payments, whether they are made online, at the counter, or picking an item from at a stand or booth.

Key features of POS systems for cannabis retail:

• Efficient Order Management: POS systems help retailers forecast demand and plan for product restocking. They also enhance the customer experience by tracking inventory levels in real time, enabling alerts for product restocking, and informing customers promptly when their desired products are back in stock.
• Seamless Supplier Integration: These systems keep a detailed record of purchases made from suppliers, streamlining inventory management and making it simpler to adjust customer orders based on current stock levels, thereby optimizing the supply chain.
• Robust Customer Relationship Management (CRM): Built-in CRM capabilities within POS software offer insights into customer purchase patterns, enabling retailers to build detailed customer profiles. This data-driven approach allows for tailored marketing strategies, personalized communication, and enhanced customer service, fostering loyalty and repeat business.
• Regulatory Compliance Assurance: Given the unique regulatory landscape of the cannabis industry, POS systems are designed to ensure compliance with state regulations. This includes tracking the supply chain from seed to sale, ensuring that retailers operate within legal boundaries.
• Enhanced Security Measures: With sensitive information such as patient records on file, cannabis POS systems are equipped with advanced security protocols to safeguard data. Features to look for include sign-in authentication, encrypted transactions, and secure cloud storage, providing peace of mind for both retailers and their customers.‍

Marketplace Software

A marketplace software is a platform to create and manage digital storefronts that aggregate product or service offerings from multiple sellers. These tools simplify and streamline the entire process of creating hosting and managing an online marketplace, including shipping, website design, and vendor communication.

Core benefits and key features:

• Order Processing: Marketplace software automates order invoicing after payments and accommodate splitting orders when processing orders from different vendors.
• Inventory Management: The software will manage inventory in multiple locations and warehouses.  
• Vendor Management: The platform offers operators total visibility and control of vendors and their organizational structure.
• Communication: The marketplace platform facilitates a good flow of communication between operators, vendors and buyers.
  
  

Laboratory Information Management Software (LIMS)

Laboratory information management software (LIMS) is a tool that allows you to manage test results, samples, and associated data to improve lab productivity and efficiency.  

Core benefits and key features:

• Sample Tracking: The LIMS software should record data on a sample form testing to storage
• Protocol Execution: A laboratory has a standard operating procedure when processing a sample which a LIMS needs to ensure lab techs follow for consistency and accuracy of results.
• Storage Organization: The LIMS platform should track a sample throughout its laboratory lifecycle.
• Instrument Integration: The LIMS needs to be integrated with lab instruments for better sample tracking and data collection.

How to choose cannabis software

1. Know your framework: When picking any software, it’s important to consider how it will fit into your operational framework. For example, if you’re a vertically integrated operator, you will want a software solution that supports more than just cannabis cultivation or just distribution. You will want a platform that can be used by all of your employees and departments.
2. Do your research: Many software solutions can look perfect on paper, but that does not mean they are the best solution for you. Make sure you get demos from each of your options, ask about pricing, looks up reviews and testimonials, and ask trusted colleagues for their recommendation. Websites like G2 and Crozdesk are great for this.
3. Consider the ROI: Investing in a business solution, especially software, can be pricey, so it’s important to know what the return on investment will be for you. Ask yourself a few of these questions to know if the prices is worth it:
   
   How does this reduce my labor costs? Does this optimize my workflows? Will it help me improve my profit margin on products? What does this do to improve data entry practices?
4. Get to know the company: It’s important to know if the company behind the software is one that you want to work with. Imagine signing up for a solution and quickly realizing the customer experience is not what you were hoping for. Ask the employees if they care about the cannabis market and research the software company to see what they have been up to. For example, a company that secured funding and has a large customer base is much more likely to be a better choice than a startup.
   
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