Mastering the Planning Process for Cannabis Production

Beyond aligning with state compliance, cannabis producers face challenges similar to all manufacturing operations. Learn more today!

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    Cannabis product manufacturers face unique challenges when managing processes to extract cannabinoids from plants to make oil-based products for various product types, as well as to process flowers or buds for pre-packaged products. In some respect, cannabis production is similar to other plant manufacturing. But most of the horticulture industry does not fall under any sort of regulations, excluding food-grade products.

    In the regulation arena, the requirements for cannabis are more like what the food industry faces. But food is regulated at the federal level whereas cannabis is regulated by individual states. Those that allow the recreational or medical use of cannabis have their own set of regulations. Any cannabis company that operates in multiple states faces complex compliance challenges.

    Beyond aligning with state compliance, cannabis producers face multiple challenges similar to all manufacturing operations. These include monitoring consumption rates and forecasting demand trends to measure product popularity and to plan for the procurement of materials.

    Within production facilities, cannabis businesses also need to track labor rates to schedule resources effectively to meet production goals. Throughout the cannabis supply chain process from manufacturing to finished products, businesses need to not only track inventory, but also quality, potency, and compliance certificates of analysis.

    Manual Approaches Hamper Business Growth

    When first starting up, mastering the planning process for cannabis production can be achieved with the skillful application of Excel spreadsheets and general accounting software such as QuickBooks. But as the rate of sales orders increases rapidly, these manual and entry-level approaches tend to hamper business growth.

    Systems lock up, access to information is limited or cumbersome to analyze, and production lags. This delays fulfilling customer orders—increasing the risk they may take their business elsewhere and therefore impacting revenue. What’s needed is a central ERP platform that integrates production workflows with financial data as well as operational data including procurement, inventory, compliance and quality control, sales orders, and sales forecasts.

    ERP Automates Processes and Streamlines State Compliance

    Many growing cannabis producers have solved the challenge of using manual spreadsheets and entry-level accounting programs by transitioning to an ERP system such as Microsoft Business Central.  SilverLeaf from Velosio powered by Microsoft Dynamics 365 Business Central integrates all financial and production functions to optimize cannabis business operations.

    With unique and/or state-mandated inventory tagging, SilverLeaf enables cannabis growers and processors to track bulk materials as they turn into crude oil, get refined, and then combine with other bill of materials components to create finished products. You can trace vape pens, for example, all the way back to the raw materials and the plant material they came from. SilverLeaf also breaks down each product into costs for raw materials, labor and overhead so you can accurately measure margins.

    During the materials quarantine stage, SilverLeaf helps monitor the label testing process to know when the materials in a batch have received a certificate of analysis and are ready for the next stage of production. You can adapt this function according to the varying requirements of each state you operate in—whether it’s testing bulk cannabis products or finished goods. This capability helps ensure you won’t sell anything that hasn’t passed state-required quality testing.

    Streamline State Compliance

    To streamline compliance, SilverLeaf integrates with the Marijuana Enforcement Tracking Reporting Compliance (Metrc) system. This helps you drive seed-to-sale traceability and comply with state regulatory bodies that oversee the cannabis industry. SilverLeaf automates sending data to Metrc and other secondary systems (such as quality control handling) that cannabis businesses must report to in order to process and produce marijuana products legally.

    This capability is particularly helpful for those who operate in multiple states under different business entities. You can manage operations in each state and roll up the KPIs of each entity to see how the business is doing as a whole. SilverLeaf can support hundreds of legal entities to sync with your organizational structure.


    SilverLeaf Key Benefits

    • Know your costs—track the margin of each product accurately to discover ways to reduce costs and re-invest in your business.
    • Streamline operations—enforce best practices across you entire production lifecycle and accommodate new processes with an ERP system that grows alongside your business.State Compliance tips and benefits
    • Master your inventory—reduce inventory overage through improved management of raw materials, parts, work in progress, and finished goods.
    • Nurture customer relationships—become a trusted vendor to your dispensary customers with accurate predictions of lead times, inventory levels, and product costs.
    • Grow faster—gain control over tracking and testing to confidently bring new products to market and by adapting production to meet new needs while increasing output without sacrificing standards.


    Learn More about Mastering the Planning Process

    Managing your cannabis operation is no simple task and requires strategic planning and streamlined production. SilverLeaf helps you solve this challenge by providing one integrated system with a single source of the truth for quick inventory visibility. When managing sales orders, you can adjust on the fly to overcome volatile supply chains and change your production line resources to meet customer demands.

    To learn more about how SilverLeaf can help you run your business more efficiently, check out the Velosio webinar, Mastering Cannabis Operations: Planning, Production, and Personnel, on September 28 at 2 p.m. Eastern. Join our industry and technology experts as we discuss how leading cannabis producers are becoming more profitable and productive through technology that helps them manage personnel, planning, and production. And for more information on SilverLeaf, contact Velosio today.