Cutting Through the Cannabis Software Myths

Let’s be honest: the cannabis tech space is full of buzzwords, half-truths, and outright lies. At BatchNav, we call it what it is — BS.

Here are the two biggest myths we hear every day:

Lie #1: “We’re an ERP system.”

For years, so-called “enhanced inventory systems” — Dutchie, Distru, Canix, Flourish, and others — have been claiming ERP or MRP status. But let’s be clear: they are not ERP systems.

At MJBizCon, an actual ERP vendor explained it simply: “Ask them if they can cut a check.” The answer is always no.

What Real MRPs Do

Modern MRP-II systems are sophisticated inventory and supply chain tools, tightly integrated with accounting. They:

  • Schedule workflows via a Master Production Schedule.
  • Manage time, materials, and overhead through Bills of Material and Labor.
  • Handle payments and cut checks to suppliers.

These platforms only became possible when computing power caught up with manufacturing complexity. They are powerful — but not what cannabis “inventory-plus” vendors are selling.

Lie #2: “We track COGS.”

Every booth seems to say it: “We track COGS.”

Here’s the truth: they don’t.

What COGS Really Is

COGS (Cost of Goods Sold) = time + materials + overhead.

It shows up as a line item on the Income Statement, but it originates from a Statement of Cost of Goods Manufactured (COGM).

COGM = all costs required to produce a finished good, before it’s sold.

Until you can track all three components — labor, materials, and overhead — you are not tracking true COGS.

What Competitors Actually Do

Inventory systems may capture:

  • Direct materials,
  • Some direct labor,
  • Or both.

But none of them attempt to capture or allocate overhead. Recently, one vendor admitted they simply let clients “enter whatever number you want for overhead.”

That isn’t costing. That’s guesswork.

The BatchNav Difference

BatchNav is built on manufacturing principles, not compliance checklists.

  • Captures direct labor and materials via task bills and inventory.
  • Allocates overhead costs with Activity-Based Costing at period close.
  • Produces true COGM (Cost of Goods Manufactured), which flows naturally into COGS once sales occur.
  • Delivers audit-ready accuracy — not arbitrary placeholders.

BatchNav doesn’t pretend to be a full ERP. It’s better: a purpose-built cannabis manufacturing system that gives you the accuracy of MRP without the complexity or cost.

Bottom Line

If your software can’t cut checks, it’s not ERP.

If it can’t capture overhead, it’s not tracking COGS.

Stop buying the myths.

With BatchNav, cannabis operators finally get true manufacturing-grade costing — simple, accurate, and built for this industry.