Production Archives - 365 Cannabis

Why Available to Promise (ATP) Matters to Cannabis Operators

Andrea Carter — Wed, 20 Aug 2025 13:00:00 +0000

Oversupply in the cannabis industry has fueled the infamous “race to the bottom,” pushing prices lower and squeezing margins for operators nationwide. Too many cannabis businesses focus on sheer output and overlook a key business practice: selling through inventory at a healthy margin.

Because cannabis is a regulated product with strict expiration dates, operators must not only produce efficiently but also turn product quickly. The reality is that many overproduce which forces them to slash prices just to get product onto shelves. This cycle of oversupply and discounting has accelerated falling wholesale prices across the U.S. According to Cannabis Benchmarks, the weighted average price for a pound of cannabis dropped from $1,328 in August 2019 to just $1,093 in August 2025—a 17.7% decrease—while inflation rose by 26.36% in the same period.

Data based on the United States

With rising costs of living and operating facing off with a race to the bottom, cannabis operators need smarter strategies to protect margins and stay competitive.

Spoilers: we got your back on this but keep reading.

How Can Cannabis Operators Control Their Sales Inventory?

A major factor in the race to the bottom is discounting product pricing. Common reasons for discounting products are upcoming expiration dates and having too much product on hand and needing to make space. A solution that we have seen success with is Available to Purchase (ATP) in cannabis software.

What is ATP in Cannabis?

ATP is a live tool in cannabis inventory management software that delivers data to operators on how much cannabis can be legally and operationally committed to a sale. Basic inventory counts will only show how much finished product is ready to sell at that moment- just what’s on hand. An APT program is a comprehensive look at what you have on hand, what you have allocated to customer orders, what’s quarantined, what’s in the production cycle, and what’s pending testing. Where basic inventory reports give a surface-level snapshot, ATP provides a comprehensive, real-time picture of what’s actually sellable.

How does ATP Help Cannabis Operators?

ATP capabilities for cannabis management extend past sales availability; it can also be a compliance safeguard. The accurate numbers inclusive of products in testing or to be finished soon deliver accurate inventory across the board. This ensures alignment with the state compliance system and avoids unnecessary compliance penalties. Many ATP solutions also offer FIFO capabilities to ensure, true to form, product is sold on a first in, first out basis.

ATP also prevents accidental oversell situations that may be costly and labor inducive to fix. Aside from oversells, there may be fees or penalties within state compliance systems for inaccurate product numbers. The ATP tool becomes a single source of truth for cannabis sales commitments and streamlines operations for your sales team.

When paired with a cannabis ERP system that includes sales projection reporting, ATP gives operators the insights they need to forecast demand, control output, and maintain profitability.

How Can Cannabis Operators Implement ATP Today?

The fastest way to bring ATP into your cannabis operation is by using a cannabis ERP system designed for compliance and inventory management. With 365 Cannabis, ATP is powered by SellStack and can be built directly into cultivation, manufacturing, distribution, and retail workflows. That means operators can see, in real time, exactly what inventory is legally and operationally available to sell, without worrying about overselling, compliance discrepancies, or wasted product.

By combining ATP with 365 Cannabis’ sales forecasting, costing, and compliance integrations, operators can finally take control of their inventory, protect profit margins, and stay competitive, even in an oversupplied market.

To see the solution in action, schedule a demo with 365 Cannabis and discover how ATP can give your business the confidence to promise only what you can deliver.

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How a Cannabis MRP Can Benefit Your Business

365cannabisnew — Mon, 04 Apr 2022 16:40:56 +0000

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 management

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.

Demand forecasting

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.

Waste Reduction

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!

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8 Ways To Get More Accurate Inventory Supply Counts

Megan Chiamos — Thu, 16 Jul 2020 17:41:08 +0000

Keeping an accurate inventory is crucial to making sure you know what products are selling and which are not. It also helps you keep track of your assets.

Sometimes, keeping track of all your product can get overwhelming.

We asked eight professionals how they plan, track, and manage their inventory.

Read their tips for ensuring accuracy below.

Get Organized

Organization is key. Having a designated and detailed spreadsheet with all items will help keep track of what is being spent and what is being bought. It also helps to have a designated inventory room so that they are easily accessible when needed. Putting an employee in charge of this will keep things in order and ensure that all other staff are communicating with the same person and that one person has a handle on all inventory.

Megan Chiamos, 365 Cannabis

Find a Digital Program

Finding a digital program to organize and keep track of all of your inventory is a life-saver. This will ease employee fatigue of having to manually keep track of supplies and is a more efficient use of employee time. Also, getting on a productive counting system will help facilitate a smooth system of tracking and keeping data.

Brett Farmiloe, Digital PR Agency

Map Out Inventory

If you’re running a rental equipment business, the first step to an accurate inventory supply count is to map out inventory. Because equipment is consistently being checked out and returned, you’ll need to establish a baseline inventory to keep track of what’s coming and going. Figure out what you have, how much you have, and then establish a way to keep track of it all.

Carey Wilbur, Rental Equipment Financing

Use a Proper Inventory Tool

Inventory management is tricky for any business. But one thing is clear: if you’re still using spreadsheets for inventory tracking, you will die young. Using a proper inventory tool is the key. A good tool will allow for custom inventory object setting and specific rule setting. In our case, we use a highly customizable platform Ontraport. We set up a custom inventory object for each of our SKUs and decrease it by 1 after each order ships; the system then alerts us when inventory is getting low for a SKU and it is ready for re-order.

Michael Kansky, BigMouthSurvey

Ensure Each Product Has a Unique Barcode

The most important requirement is to ensure that every product has a unique barcode and that all shipments from your suppliers come pre-barcoded. In addition, ensure that you are scanning each of the barcoded products into your inventory management system upon receipt. This process ensures that you received the right amount of inventory. In addition, as products are shipped out to customers, the barcodes can be scanned into the system to reflect the sale of that inventory. While it takes time and money to set up this kind of system, it pays dividends by greatly reducing the complications of inventory management and the risks of inaccurate supply counts.

Jessica Rose, Copper H2O

Shopify Plus

We are planning, tracking, and managing our inventory by using Shopify Plus w/ an ERP behind the scenes to connect our six online e-commerce stores. We use an open-to-buy system for managing inventory, and we are using the purchase order process within our ERP to create purchase orders, to receive, and for accounting purposes.

Brian Lim, INTO THE AM

Integrate Scanning Technology With Smartphones

Today there are no excuses for data gaps in your inventory, and ever more pressure to make processes entirely traceable and trackable. One simple way to make this possible is by integrating scanning technology into your app or website so your workforce can identify packages and stock with their own smartphones. By scanning serial numbers, delivery orders and barcodes on any standard smartphone, you can enable end-to-end visibility from production through to delivery.

Lukas Kinigadner, Anyline

Use Customer Data to Project Upcoming Inventory

Planning for the inventory starts with knowing what customers want. Then know how much to stock for peak and off-peak seasons so you neither have too little nor excess inventory. We use data from previous years to stock what we expect customers to come looking for at a specific time.

James Jason, Mitrade

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6 Components of a Great Marijuana Cultivation Business Plan

Megan Chiamos — Wed, 22 Jan 2020 16:00:49 +0000

Having a strong business plan is good for companies in any industry, but when it comes to growing cannabis, having a well-thought-out marijuana cultivation business plan is an absolute necessity. In fact, when starting a cultivation business, you must have a cannabis cultivation plan to submit with your application to receive a license. Additionally, you must show investors your detailed plan for success.

Writing a business plan isn’t easy—especially when you have to dive into the details of other industries that typically wouldn’t have to consider, like HVAC and compliance. It takes a lot of research, planning, and time to develop a plan that lays out procedures that haven’t been practiced. Even more, it is specific to your unique operation and instills confidence in the regulatory agencies and investors.

But, all of that work will pay off when you have created a step-by-step guide to the heart of your cannabis cultivation business.

To give you some more insight on how to make a cannabis business plan, we’ve compiled a list of six components that a great plan should include:

Cultivating a Marijuana Growing Business Plan

Facility Map

Provide a detailed overview of how your cultivation facility will be laid out. This includes general information, like the size, number of rooms, and number of plants.

You’ll also want to go into extensive detail to include everything from your labor processes to the air filtration system, production schedules to irrigation.

The more detailed your facility map is at the start, the easier it will be to analyze for gaps and needed changes when you audit your operation.

Security Plan

You will need to describe the physical layout of your facility, surrounding property, parking lots, and neighborhood.

Include extensive documentation including blueprints, maps, etc—documents that lay out everything from fencing and landscaping to lighting and camera locations.

Next, have your policies and procedures in place. This includes how individuals enter and exit the facility.

Transportation

Transporting your goods from one location to another can be a tracking and compliance nightmare. This is the perfect time to make sure that you have everything you need in place for your product to arrive safely and securely.
Detailed plans should include licensed drivers, vehicles being used, shipping manifests, packaging and labeling practices. In addition, departure and arrival schedules and the routes should be tracked to ensure there is a paper trail throughout the entire transportation process.

Packaging and Labeling

All cannabis product labels should include mandatory information prominently displayed in a clear and legible font.

From standard information to health and safety warnings, each statement you must use on your packaging should be clearly defined.

Regulations regarding packaging and labeling can vary from state to state. Be sure to review your state’s requirements for the most accurate information.

Compliance Requirements

You must show how your business will meet the compliance requirements to operate legally in the cannabis industry.

Your cannabis cultivation business plan must show that you understand required compliance regulations. Additionally, you must show how you will ensure ongoing compliance with proper standard operating procedures and staffing.

We always suggest having a dedicated employee or a third-party consulting partner on record that knows all your operation’s compliance requirements.

Tracking Solution

Since cannabis is a heavily regulated industry with separate overseeing authorities and designated tracking systems depending on location, your seed to sale tracking software is business-critical for compliance as well as business growth.

Choosing the right API cannabis software can significantly affect the success of your business. 365 Cannabis stands unrivaled with its open API ecosystem that allows seamless integration with over 80 partners. It empowers you to select vendors best suited to your requirements and to stay ahead of the curve in a competitive market.Explore more about 365 Cannabis partners and integrations and how our cannabis compliance software can propel your business forward. Choose 365 Cannabis, the smart choice for your cannabis business, and join us in shaping the future of the cannabis industry.

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GMP Overview

Cardell Robinson — Wed, 18 Dec 2019 19:06:39 +0000

Topic

GMP or good manufacturing practices is a hot topic surrounding the manufacturing of cannabis products. Not only are consumers still unsure of cannabis use in itself, but they want risk assessment and security that these products are unharmful to health.

Manufacturing can be accomplished in many ways, but is best guided through the compliant framework called GMP. Let’s take a peak into what these practices mean to the cannabis industry and what compliance looks like no matter where you are.

What is GMP?

“GMP” or “good manufacturing practices” is a concept recognized and established in countries all over the world including, but not limited to, Australia, the United States, and Canada. Resources relating to each country can be found on the website of the International Society for Pharmaceutical Engineering.

A lot goes into manufacturing, especially in relation to the cannabis industry. Production involves solvents, or gases, pesticides, or other chemicals, distilling processes, and much more, in which is why GMP is a universal concept so that the products created for use on or in our bodies are safe and unharmful (even if the production process was potentially harmful). If you are familiar with relevant U.S. state regulations, then you are familiar with the discrepancies and specifications involved in tracking and disclosing use of additives, pesticides, etc.

In the US, GMP is overseen by the FDA (US Food and Drug Administration), and their purpose is to “[ensure] the quality of drug products.” They achieve this goal through monitoring and implementing regulations, particularly concerning manufacturing processes and packaging of drug products as well as the integrity of the ingredients and strength.

In the EU, GMP is overseen by the European Medicines Agency, in which their guidance and requirements are outlined. Since medical cannabis is legal in many EU jurisdictions, the regulations are more clearly drawn out, as in comparison to the US, which is legal only by state regulation.

The Australian Department of Health helps Australian licenses navigate GMP. Their guideline is called the “Therapeutic Goods (Manufacturing Principles) Determination” in which they apply their interpretation of GMP while aligning with universal interpretations. Similarly, this document references important subjects such as product quality reviews, risk management, and other safety practices.

There are 10 principles of GMP: define operating procedures and work instructions, follow your defined procedures, document your work, validate work through quality tests, facility and equipment should be well defined, maintain facility and equipment, demonstrate job competence, have good hygiene to protect drugs from contamination, design quality control, and perform regular audits.

Recommendations

GMP is a universal concept, but is also hefty, especially since each jurisdiction has their own interpretation for what this means through their regulations and guidelines. If you are looking to expand into a new location, our recommendation is to do your research. Being prepared is the best way to plan, build, and grow your business which can be done through personal research, contacting professionals, or networking with those in similar roadblocks. GMP, like many other compliance issues, is not a subject to be ignored.

Use the links in this small overview to begin your journey to expansion and let’s continue working together to spread the word about compliance issues and surpassing them.

Citations

Australian Government Department of Health. (2017, September 29). Questions & answers on the code of good

manufacturing practice for medicinal products. Retrieved September 27, 2019, from https://www.tga.gov.au/questions-answers-code-good-manufacturing-practice-medicinal-products.

Best video on 10 Principles of GMP | Good Manufacturing Practices. (2019, April 17). Retrieved October 8, 2019,

from https://www.bing.com/videos/search?q=gmp+standards+youtube&&view=detail&mid=11F20B9223A5E893261F11F20B9223A5E893261F&FORM=VRDGAR.

Center for Drug Evaluation and Research. (2018, March 30). Current Good Manufacturing Practice (CGMP)

Regulations. Retrieved from https://www.fda.gov/drugs/pharmaceutical-quality-resources/current-good-manufacturing-practice-cgmp-regulations

GMP Guidelines. (n.d.). Retrieved October 8, 2019, from

https://ispe.org/initiatives/regulatory-resources/gmp/regulatory-guidelines.

Guidance on good manufacturing practice and distribution practice: Questions answers. (2019, August 21).

Retrieved from https://www.ema.europa.eu/en/human-regulatory/research-development/compliance/good-manufacturing-practice/guidance-good-manufacturing-practice-good-distribution-practice-questions-answers#eu-gmp-guide-part-i:-basic-requirements-for-medicinal-products:-chapter-1:-pharmaceutical-quality-system-(new-july-2018)-section.

Lahnakoski , K. (2019, April 18). APPLICATION OF GMP IN THE CANNABIS INDUSTRY.

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HIPAA and Cannabis

Cardell Robinson — Wed, 27 Nov 2019 18:42:50 +0000

Topic

Cannabis crosses over in many regulatory environments and since majority of cannabis markets exist due to its medical benefits, it crosses over into the medical regulatory environment. Particularly, medical cannabis is subject to follow guidelines under HIPAA, which outlines the utter importance of medical data security.

How does this relate to the cannabis industry?

What is HIPAA?

HIPAA or the Health Insurance Portability and Accountability Act (1996) provides regulations on privacy of health information, security of PHI (patient health information) and electronic systems, as well as guidelines and penalties regarding confidentiality in the medical field.

Dispensaries and retail stores that sell to patients and store patient information for business swiftness or state regulatory uploads must be aware of the weight of HIPAA. The US Department Of Health and Human Services develops regulations protecting patients, their privacy, and their security. Being HIPAA compliant means that you comply with three main rules: privacy rule, security rule, and electronic data exchange.

The privacy rule involves simple protection of an individual’s health care data. Applying the privacy rule to your business could mean a variety of things, but the end goal has to include protecting the information.

Going hand in hand with privacy, security controls the confidentiality, storage of, and access related to PHI. Meeting this requirement could mean using a SOC 2 compliant software to manage the data of your business, creating controls to prevent unauthorized access, or using secure servers.

Finally, Electronic Data Exchange (EDI) pertains to data exchanged between providers and payers, or in general transmitting data. Another relevant transfer of data is those that go from the dispensaries to the state for proper tracking and statistics. Technology is both your enemy and your friend, make sure that the system you are using is strong and effective at preventing cyber attacks and successful at ensuring controls are working efficiently.

Anytime you come into contact with patient information or it’s easy for others in your business to access it, then you are subject to these security regulations.

Recommendations

There are some simple suggestions to combatting such an immense regulatory environment: don’t discuss patient information; avoid leaving records accessible to others (open POS systems or backfiles); refrain from printing or storing outside the secure system at all possible.

The best recommendation is to find a system that is SOC 2 compliant or has been audited to ensure exceptional security and safety for the information your business encounters. Always air on the side of caution and take impervious approaches to business processes and controls.

Always consult with professionals about the potential consequences regarding patient health information privacy breaches and plan ahead to prepare for worst case scenarios.

Citations

HHS Office of the Secretary,Office for Civil Rights, & Office for Civil Rights. (2013, July 26). Summary of the HIPAA

Security Rule. Retrieved September 26, 2019, from https://www.hhs.gov/hipaa/for-professionals/security/laws-regulations/index.html.

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The Cannabis Industry and 280E

Cardell Robinson — Thu, 21 Nov 2019 20:31:34 +0000

Topic

Running a business in the cannabis industry is already a tricky operation to navigate, and this is without the extra hardships of marijuana being a controlled substance by federal law. In 1982, the congress enacted a law, §280E, that clarifies the lack of business deductions available to those who run a legal business with an illegal substance. How does this affect our businesses today?

What is 280e?

In 1981, a cocaine trafficker went to tax court to plead his case as to why his business should be allowed to file taxes in a similar way as any other business and, low and behold, he won the case. The next year, congress created 280E to discourage businesses from trafficking illegal substances.

Section 280E reads that “no deduction or credit shall be allowed for any amount paid or incurred during the taxable year” for businesses operating by “trafficking in controlled substances”. This also includes deductions for regular business expenses such as paying your employees, phone and electric bills, and rent for your property. In a typical business, you can deduct your expenses incurred against your gross receipts to diminish your taxable income and therefore pay more reasonable taxes. Although marijuana businesses bear legality in many states, their tax liabilities are exceptionally larger than those of other businesses because their taxable incomes very closely resemble their gross incomes. A marijuana business may, however, still remove their costs of goods sold out of their gross revenue, which typically includes inventory costs or direct costs to products.

The example below, built out by the NCIA, depicts how this affects a marijuana business.

Recommendations

In a Forbes article, by Jonathan Gass, he outlines one business strategy that has held up in court which entails dividing your one business into two. By separating your business, you can elect one as your primary marijuana business using the costs of goods sold deduction as your biggest advantage and the other business can be used to pay your employees, bills, and rent allowing regular business deductions. Tax planning is complicated, work with a CPA or professional to best plan your business structure.

365 Vertical recommends for situations such as this one, to work with professionals (CPAs, tax lawyers, etc.), acquaint yourself with current industry dilemmas, and work with others in the industry. We know that working in this industry can be tough and extremely rewarding, so keep up the good work and let’s continue working together to maneuver roadblocks such as 280E.

Citations

CREATING AN IMPOSSIBLE SITUATION FOR LEGITIMATE BUSINESSES . (2015), 1–11. Retrieved from

https://thecannabisindustry.org/uploads/2015-280E-White-Paper.pdf

Gass, J. (2018). What Cannabis Entrepreneurs Should Know About Tax Section 280E. Retrieved from \

https://www.forbes.com/sites/theyec/2018/07/24/what-cannabis-entrepreneurs-should-know-about-tax-section-280e/#535c63f57377

Luna, S. (2018). 5 EFFECTIVE WAYS TO LOWER YOUR 280E TAXES. Retrieved from

https://www.avivaspectrum.com/insights/5-effective-ways-to-lower-your-280e-taxes

Thomas McElroy, Jr., I. R. S. (2015). Taxpayers Trafficking in a Schedule I or Schedule II Controlled Substance –

Capitalization of Inventoriable Costs, 1–8. Retrieved from https://www.irs.gov/pub/irs-wd/201504011.pdf

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