Cannabis operators are familiar with the need for seed-to-sale software- it’s an essential platform for compliance with METRC or BioTrack. Many plug and play their software and call it a day, however its only use in many cases is compliance when it could be doing more. Cannabis businesses looking to scale, boost profitability, and streamline operations across cultivation, manufacturing, finance, and distribution, simply need more support. That’s where the key difference between a seed-to-sale software and an ERP for cannabis operators comes in. A cannabis ERP becomes a nucleus for the operation, bringing in compliance, finance, and operations together to deliver business-critical data for immediate decision making at every turn. There is some miscommunication and confusion around what an ERP is in cannabis, and this guide delivers the key differences between cannabis ERP and seed-to-sale software. 

What is an ERP?  

ERP stands for Enterprise Resource Planning, and is a platform that streamlines a company’s operations, efficiency, data, and finance. The ERP becomes the internal hub for all moves made within the buisness. Major companies utilize ERP to ensure that every aspect of their organization across all locations are connected, tracked, and accounted for. Massive corporations like Ford, Under Armour and Coca-Cola all utilize ERP systems, and specifically use Microsoft-based ERP systems. The biggest draw for companies to implement an ERP is scalability- ERP systems are built for long term growth.  

What is a Cannabis ERP? 

A cannabis ERP has all the same functionionality that large scale organizations utlize, but also includes features for compliance. The ERP connects cultivation, production, manufacturing, distribution, and retail along with the most important aspect of cannabis- compliance. Any self-respecting cannabis ERP removes the need for QuickBooks or other standalone finance platforms because ERP inherently includes financal support. Metrc and BioTrack intergrations are also embedded within cannabis ERPs to ensure compliance at every step of the plant life’s process from planting the seed to hitting the customer’s exit bag.  

What is Seed-to-Sale? 

Seed-to-Sale is a term that gets used a lot in the cannabis space and may appear interchangable with POS, or even ERP, at times. Seed-to-Sale is typically used as a compliance system and POS to organize and hold all the operator’s information. This is helpful however, Seed-to-Sale does not integrate finance platforms forcing users to utilize QuickBooks or other finance platforms. While some Seed-to-Sale software programs may be more robust than others, overall they are limited by: 

• No finance management  

• No or extremely limited support for manufacturing or processsing  

• No cross-departmental integration 

• Reporting that only pertains to specific transactions or tasks, not representative of the entire buisness suite of functionality  

A Seed-to-Sale software focuses on regulatory compliance, but doesn’t offer the resources for scalability. 

What are the Major Differences Between ERP and Seed-to-Sale? 

Seed-to-Sale is a regulatory platform for compliance and limited reporting. It works for dispensaries as far as inventory and retail sales tying into state regulatory platforms. ERP is a data powerhouse that connects every aspect of an operation, vertically integrated or not, across all locations and becomes the central source of truth for business decisions. A Seed-to-Sale delivers a summary of what happened, while an ERP delivers context of why things happen and what to plan for in the future. 

Who Should Use a Seed-to-Sale vs. an ERP?  

Seed-to-Sale is a great option for single location retailers. A standalone dispensary needs a compliance tool to ensure they’re in line with Metrc, BioTrack, or whatever regulations in their area are needed.  

ERP is a great option for vertically integrated companies, multi-location and multi-state groups, and companies primed to scale their operation. Cultivators, manufacturors, producers, and retailers are able to make use of an ERP to align their entire organization, including financials.  

ERP users are able to replace multiple disconnected business tools like separate Seed-to-Sale, inventory platforms, manufacturing softrware, accounting software, and loose spreadsheets and pulls all data into one unified platform. ERP reduces human error by eliminating double entry across serveral touchpoints.  

Not every operator needs an ERP to survive; many are viable candidates for a simple Seed-to-Sale software. The operators looking for growth, streamlined operations, and a single software partner to track every COG, every BOM, every invoice, every penny moved through the organization need to be looking at an ERP.  

Ready to look into ERP software options for your cannabis business? We have a comprehensive guide for selecting the right cannabis ERP for your operation.