Exclusive Interview with Top Cannabis ERP Software Provider NexTec
July 24th, 2017
News, Top News
The emerging cannabis industry is extremely regulated, with different rules in place for each individual legal state. Marijuana products must be closely tracked from seed to sale to ensure safety and compliance. Enterprise Resource Planning (ERP) software is critical in this area, as the technology can assist growers and other cannabis business owners in managing their products efficiently and effectively. NexTec, one of top and only providers of cannabis-specific ERP software, ensures that plants are tracked in an extremely in-depth and informative manner. CFN Media sat down with Chris Milan, VP of Sales, to discuss the growing need for this technology and how NexTec is changing the face of the seed to sale process.
Rachelle Gordon: What is NexTec and what is its place in the cannabis industry?
Chris Milan: NexTec Group is a consulting firm for business technology, specifically for ERP, CRM and BI software. We represent a number of different software products and help companies select and implement the best software systems for their industry and company.
The best ERP for the cannabis industry is Sage X3. That’s because Sage X3 is developed specifically with process manufacturers in mind. Any company that uses ingredients, a recipe or a process for production is considered a Process Manufacturer – food and beverage, pharmaceuticals, nutraceuticals, chemicals, agriculture. Cannabis companies are process manufacturers, too.
Many of NexTec’s customers are in the food and beverage industry, including large hops growers, nut growers, and tea companies. All of them are very highly regulated and must be FDA compliant. Sage X3 can help with that and NexTec has extended Sage X3 capabilities with solutions for operations and compliance that cannabis companies face every day. We call it CannaBusiness ERP – technology that runs your Cannabis business.
RG: What technical capabilities do you offer to canna-businesses?
CM: For cannabis companies, compliance is first and foremost. So, one of the first things NexTec did with CannaBusiness ERP was to begin integrating Sage X3 with all state compliance systems. Then we added barcoding and RFID to make it easy to track each plant as it travels through production. We included inventory management, grower’s workbench and 280E capturing, which as we know, is super important. And because we know the square footage of the crop, the system can apply the labor costs for gardening activities. CannaBusiness ERP tracks all of that information as it goes through the system.
CannaBusiness ERP also includes product recall management and CAPA (Corrective and Preventative Action) planning that we originally wrote for the food and beverage industry. With it, cannabis companies can more easily be compliant with state regulations.
For example, if a bad nutrient gets into the raw materials you are using for plants, and a supplier calls and says “Hey, lot ABC was bad,” CannaBusiness ERP can tell you within 10 minutes exactly where all of that nutrient was used. You will be able to quarantine anything that’s still in raw materials, including the affected plants still in a room or in a field. For anything that has been shipped, CannaBusiness ERP can generate product recall letters and start the process of making sure that product gets pulled off the shelves of dispensaries or wherever else it may be.
RG: What are your goals for the next few years?
CM: We’d like to continue to educate these the smaller up and coming growers and cultivators to show what an ERP system can provide them. We are a good fit for the 20,000 square foot growers and above. A lot of the owners of growing operations, private equity firms and backers get what we do because we’re coming from highly regulated industry that focuses on operational efficiencies and strong plant traceability.
So, it’s continuing to build that up. I could tell you that when our first conference two years ago, no one understood what ERP was, and this last year they’re like “Oh, you do ERP.” And they totally get now that that’s the next level. That’s where you need to go to and for what we do, there’s really not a lot of options out there.
We’re in a really nice place right now. As the industry grows, we just want to be there. You know the East is moving slower, with compliance. NexTec is obviously are doing much better out West, because rec’s there and it’s moving fast.
We’re also having a some success in Canada. They have some big licensed growers, they’re going rec next year, and we are in a couple of great opportunities up there. They’re wonderful – they get it. Growers up there understand recall. They’ve had those issues in Canada with some recall of plants.
RG: What else should people know about NexTec?
CM: NexTec has been in business for over 23 years and has a 95% customer retention rate. The reason why our customers are so loyal has a lot to do with our consultants – they believe in what they do and that their efforts make a real difference for their clients. Our Sage X3 team in particular is the largest, most experienced team in the US and I’ve seen them bend over backwards for their clients. It’s a different feel here. And really, at the end of the day, that’s all we care about. Happy customers and helping them grow.
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This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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