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Why is Cannabis Traceability Important?

It’s official: Cannabis legalization is spreading across the globe!

As the legalization trend continues, governments are imposing strict rules and regulations on the industry not only to ensure that companies are operating efficiently but also to protect consumers from unsafe, harmful products.

What is Cannabis Traceability? 

Unsafe products can leave a big stain on the reputation of an industry that is pioneering medical research. To avoid potential roadblocks in the industry’s progression traceability is more important ever.

In simple terms, traceability is the capability to trace an item. However, cannabis traceability takes on another meaning of its own.

It is more about the tracking, auditing, and management of plants and products. It is easy to see why such metrics are important in ensuring the safety of products that will likely reach billions of consumers worldwide.

Why is it Important?

Factor 1: Safety Standards

As mentioned above, traceability is important because it establishes safety standards for growers and producers of cannabis products.

With proper systems and procedures to cultivate, produce and package products, cannabis businesses can ensure that their production processes are safe. In addition, they can ensure that products are free from factors that could pose compliance and health risks.

Factor 2: Recalls

Despite precautionary steps and safety standards, product recalls are inevitable.

A recall occurs when a product is deemed defective and is removed from the market because of potential dangers. 

Recalls can be crippling to a cannabis company’s reputation and profits. They can result in an entire batch of a product to be removed from production and/or store shelves. Having proper cannabis traceability controls in place to minimize the effects of these recalls can be the difference between fluid operations and permanent brand damage. 

Traceability controls allow you to quickly identify all products that have been in contact with a defective batch. Then, trace those products back to the point in production in which it became defective.

Factor 3: Compliance

Compliance is at the forefront of all cannabis operator’s minds and for good reason.

Country and state regulatory compliance systems—such as Health Canada, METRC, and Leaf Data Systems—have been a hot topic in cannabis. These compliance systems impose stringent regulations on cannabis business owners, which affect business operations.

Overregulation and over-taxation put an undue burden on this burgeoning industry in which licensed operators are ready to collaborate with regulators and peripheral businesses in an unprecedented way.

Cannabis traceability is now more important than ever. Strict tracking requirements state systems impose can cause substantial strife. Failure to follow these regulations can lead to the loss of an operating license.

The good news is that these factors are simply signs that our industry is growing at an exceptional rate.

Introduce a Cannabis Traceability System at your Canna-Business

As the industry blooms, new technology is emerging and evolving to accommodate the needs of cannabis operators. Technology like 365 Cannabis helps cannabis cultivators, processors, distributors, and retailers manage their entire operation in one system all while maintaining compliance and following cannabis traceability standards. 

Contact us today if you have any questions about maximizing the value of your business. Or, if you would like to see the unmatched benefits of cannabis-specific ERP that can help you become a GMP-recognized operator.

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