What Competitors Get Wrong About Cannabis Costing If you’ve looked at cannabis software lately, you’ve probably heard the same pitch over and over: “We track COGS.” Dutchie, Distru, Canix, and other “enhanced inventory” systems repeat this claim endlessly. But here’s the truth: those are overstated claims and capabilities. At best, these platforms track direct
Cannabis Capitalization Cheat Sheet Capitalize vs. Expense → Deductible vs. Non-Deductible Under 280E Cannabis operators face one of the toughest tax landscapes in any industry. Section 280E blocks most deductions — except Cost of Goods Sold (COGS). The secret to maximizing deductions lies in capitalizing production-related assets so their depreciation flows into inventory
Why Forecasting Falls Short in Sales-Driven Cannabis Manufacturing And how BatchNav turns unpredictability into a competitive advantage The Problem with Traditional Forecasting Most manufacturing ERP systems are built on push-style forecasting: you project future demand, produce in advance, and push inventory into the market. But cannabis manufacturing doesn’t work that way. It behaves like
Cannabis Is CPG at the Shelf, But Not in the Factory Cannabis companies face a unique dual identity: Agricultural at the Start: Cultivation depends on biological inputs — genetics, nutrients, climate — that create variability from batch to batch. Pharma-Like in the Middle: Extraction, testing, and formulation introduce controlled, science-driven processes. CPG at the
Why ERP Is the Wrong Fit for Cannabis CPG — And How BatchNav Bridges the Gap As cannabis companies shift from bulk cultivation to consumer packaged goods (CPG) — branded flower, vapes, gummies, and more — many leaders default to the systems they know from mainstream industries. They turn to big-name ERPs like SAP,
BatchNav: Beyond Track-and-Trace Most cannabis operators are already familiar with state-mandated track-and-trace systems like Metrc. These tools track plant IDs, inventory movements, and package transfers — all designed to keep regulators satisfied. But compliance isn’t the same as profitability. That’s where BatchNav goes beyond track-and-trace. While covering all the basics of compliance, BatchNav is
BatchNav vs. ERP Systems: Solving Cannabis Manufacturing’s Biggest Costing Gaps Cannabis manufacturing isn’t like producing widgets or soda — it operates at the intersection of biology, variable production processes, SKU complexity, and compliance requirements. Traditional ERP systems were never built for this reality, leaving operators exposed to distorted margins and compliance risks. BatchNav isn’t
The Costing System That’s Quietly Breaking Cannabis Margins Traditional costing methods used in cannabis—primarily the Statement of Cost of Goods Manufactured (COGM) and Equivalent Units of Production (EUP)—were never designed for a biological, long-cycle, multi-output manufacturing environment. When applied to cannabis, these methods introduce compounding errors at every stage of the production lifecycle. The
Understanding Cannabis Manufacturing Costs: Direct, Indirect, and Why It Matters In cannabis, everything we grow or make is produced in batches. An Afghani strain batch. A batch of lemon gummies. A batch of pre-rolls. Like the food and pharmaceutical industries, cannabis is a batch manufacturing process. And if you want to understand your profitability,
How BatchNav Captures All Cannabis Manufacturing Costs One of the biggest challenges in cannabis is knowing your true costs. Spreadsheets, seed-to-sale, and ERP-lite systems may capture pieces of the picture — usually direct labor or materials — but they fail to account for all costs, especially overhead. BatchNav was built to solve this problem. By
