How a Cannabis MRP Can Benefit Your Business
When it comes to cannabis, flower has always been, and still is, the preferred product among consumers. However, as the industry has matured and consumers have become more sophisticated, concentrated and infused foods and beverages have increased their market share. With demand for these products on the rise, now is the time for cannabis manufacturers to scale up your operations.
This is not to say cannabis manufacturing does not come without its challenges. Legislation varies from state-to-state. The types of products being made – from edibles, to infused beverages, to cosmetics, and supplements – are tightly regulated. There are rapidly changing consumer preferences to consider, and of course – supply chain disruptions.
How can your cannabis manufacturing business navigate these complexities? Material Requirements Planning (MRP) software is a good place to start.
MRP System vs ERP System
MRP is a system designed to help manufacturers better manage their production, from material requirements planning, to inventory management, to waste reduction, and delivery. Simply put, it helps cannabis manufacturers better understand their operations so they can optimize their supply chain.
If you think it sounds similar to an ERP system, you’re not far off. In a way, MRP can best be described as a component of an ERP. It offers much of the same functionality as an ERP, while lacking the accounting and finance aspects you would expect from a true ERP system.
Benefits of Cannabis MRP
Why do manufacturers need a cannabis manufacturing software? You have likely relied on a seed-to-sale system to track your products throughout their lifecycle. However, as you look to scale your operation, you may find traditional seed-to-sale software to be limited in its features and functionality. This is where an MRP system can benefit your business.
Inventory makes up a significant portion of your operation’s expenses. It must be managed properly for you to remain profitable. With the help of cannabis MRP software, cannabis manufacturers can effectively monitor a wide range of products across various locations, providing you complete visibility into your manufacturing production.
The ability to forecast and plan for materials is a key component of successful supply chain management. It requires the review of critical data while also looking at a number of outside factors including current market trends and seasonal swings in consumer demands. Cannabis MRP software can help you keep this data organized and easy to access.
Cannabis MRP software allows operators to prioritize lean manufacturing – limiting overproduction, delays and underutilized materials – significantly reducing waste.
Cannabis MRP Software Built to Scale
Cannabis manufacturing can be complex. Cannabis MRP software allows you to manage all the moving parts of your business, remain flexible when challenges arise, and adapt to changing consumer demands. Request a demo of 365 Cannabis today!