States that have full legalization of marijuana such as California and Colorado use compliance tracking software solutions specific to the seed to sale industry, such as Metrc. Metrc ensures compliance with specific states’ regulations that govern the growth, distribution, processing, and overall sale tracking of cannabis products.
Metrc itself operates as a regulatory cannabis inventory accounting software used by the Marijuana Enforcement Division, which is an arm of the Colorado Department of Revenue to manage the enforcement of marijuana laws. It’s expanded to be a solution available for anyone in need of monitoring cannabis production from seed to sale.
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There’s a real potential for higher taxes. Given marijuana’s illegal status under federal law, the IRS says that no deduction or credit will be allowed for businesses who incur expenses in relation to trafficking in controlled substances prohibited by federal law. The normal tax breaks and incentives businesses receive will be disallowed, which means most cannabis-related business will pay more taxes then if they had been able to deduct the expenses they incurred in the normal course of business.
Software options such as Ample Organics allow you to track and report directly within the program to stay in line with any reporting requirements set forth by the Cannabis Act and ACMPR.
Even though the primary purpose of seed-to-sale software is to create reports to keep compliance with cannabis regulations, it captures valuable data that business owners can use to make informed decisions.
Cannabis licence holders are the primary audience for seed-to-sale software. This includes standard and micro licence classes for cultivation, processing, medical sales, or a combination of the three. Depending on the software provider, they might only have one version of their software that will cover you from seed to sale, or modular versions of their software that do only what you need them to for your licence type.
Who uses seed-to-sale software?
But not all software is created equally. Going with a less expensive seed-to-sale software provider with a small implementation fee may seem wise at first, but if employees don’t know how to use it or can’t properly use the platform due to glitches or bugs, you will end up spending much more to switch platforms later on.
Custom-made seed-to-sale software is something we have only seen implemented at a few licence holder facilities because building them requires an incredibly large upfront investment — typically at least six figures. For most new licence holders, it would be difficult to justify this investment.
For example, some licence holders may only want to grow fresh cannabis and let others handle the processing and selling. For this use case, you do not need to worry about processing, packaging, shipping, or eCommerce, so why would you want to pay for unnecessary software features? This is where modular seed-to-sale software packages can help you get the best business value.
A seed-to-sale solution is an all-in-one system that tracks every stage of the cannabis supply chain. It literally tracks the entire process from the cannabis seed to sale, including growing, manufacturing, testing, distributing, and selling.
This allows your dispensary to automate data streaming and create efficient workflows primed to scale.
What is seed-to-sale software?
They also have faster implementation timelines at lower costs compared to seed-to-sale vendors. This makes the onboarding process easier for dispensaries that don’t have big budgets or time to train staff, yet need real-time results.
Best of breed means the best product of its type. Companies often choose a different software provider to solve a specific need for each part of the business. For example, you might choose to purchase cannabis cultivation software from one vendor and point-of-sale from another, depending on your unique requirements and pricing constraints.
Best-of-breed also allows you to add additional partners that excel in their niche, like customer loyalty programs, CRM, cannabis ERP software, kiosks, HR/payroll providers, etc.