Rootstock Software: ERP Sales Are Booming in Cannabis

Robustness of Supply Chain Is Separating Success from Failure

San Ramon, Calif. - April 20, 2021Rootstock Software, a worldwide provider of cloud ERP, is finding that, as the size and scale of cannabis companies grow, the organizations are obtaining a more sophisticated workforce that has expectations about the tools or work enhancements they need to perform. These companies are expanding around the globe and they need to be able to work together as one coordinated enterprise, even though they are in North America, Europe, Africa, South America, the Caribbean, Australia and Asia. The question that needs to be asked is, how does one manage such an entity without having tools that support multi-currency and multi-division issues as well as industry specific requirements?

"One of the toughest obstacles of any business is efficient vendor and supply management," states David Stephans, president of Rootstock Software. "Such an endeavor is further complicated when the market is new and heavily regulated like cannabis. How does an organization break down the intricacies of getting its idea from a scribble on a notepad to a developed product delivered to market? The robustness of a company's supply chain can often be the deciding factor separating success from failure."

At present, most cannabis companies are struggling to properly manage inventory and optimize production for the raw material they can acquire, so they need an industrial-strength ERP system to plan and produce more optimally, Stephans adds. The other issue is making sure quality management, compliance and customer service are all embedded in one system. Legal cannabis companies compete on quality versus the black market, so management of value is critical to their business strategy. Therefore, ERP systems need to help them produce, test and ensure that they are producing superior products.

"This is a significant growth market and it is no surprise that ERP vendors want a slice of it and there are several dedicated cannabis ERP vendors in existence," Stephans adds. "However, Rootstock Software differentiates from these often smaller vendors in that it is cloud native and built on a massively scalable platform. It also provides not just the industry vertical functionality but has also invested in highly qualified and experienced professional services and customer success personnel to support customers through implementation, go-live and ongoing operations. Importantly, Rootstock is also an international vendor."

Customers include Aphria, which reported net revenue of $160.5 (Canadian) million in Q2 of 2021, an increase of 33 percent from the prior year quarter, and NuLeaf Naturals, one of the United States' top pioneering hemp companies. 


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