Few industries are evolving as quickly as legal cannabis, and this year has proved to be one of the most pivotal yet for the maturing sector. The ongoing pandemic has established cannabis’ indelible status and economic value in nearly every state across the U.S., and the legalization movement is likely to ramp up as cash-strapped governments turn to new and reliable ways to generate tax revenue.
Legislatures in states including New York, New Jersey, Pennsylvania, Virginia, South Dakota and Arizona have either committed to passing legalization reforms or are allowing their constituents to vote on the measure in November. The legal industry could face substantial tailwinds in the coming months, considering how more than two-thirds of Americans support legalization and political leaders from both sides of the aisle have voted to decriminalize cannabis.
In light of this promising momentum, legal businesses spanning every sector are gearing up to increase their market share in new territories, but navigating the litany of regulatory and compliance hurdles has proven to be cumbersome for even the most visible players in the field. Failure to keep up with ever-changing tracking and compliance measures could result in legal companies incurring steep fines or even losing their operating licenses, which can often be the death knell for growing businesses.
Juggling stringent regulations and balancing critical business operations while expanding into new markets can be an impossibly daunting task for retailers and operators, but LeafLogix, one of the largest seed-to-sale enterprise resource planning (ERP) solutions providers in the industry, believes that it has been preparing for this focal moment since its inception in 2015.
Although the company is widely known for its partnerships with leading cannabis tech and retail platforms including LeafLink, Jane and Dutchie, behind the scenes, it has also been providing operational support to roughly 85% of the leading multi-state operators (MSOs) including GTI, Holistic Industries, Harvest and Columbia Care, processing over $4B annually in gross merchandise volume (GMV). LeafLogix provides these MSOs, in addition to smaller companies, with a POS platform that reduces transaction times and improves dispensary’s efficiency and profitability, and includes a fully integrated payment processing solution. Considering the potential onslaught of expansion opportunities in the next year, LeafLogix believes that it has the infrastructure, experience and resources to help competitive MSOs establish themselves in lucrative new markets.
Despite the small handful of ERP solutions providers in the industry, LeafLogix CEO James Minutello is certain that the company’s competitive advantage – and the fact that a high percentage of its customers transition from competing software – stems from its comprehensive platform integrations and expansive knowledge of mainstream supply chains.
“I worked in supply chain management for 25 years before making the pivot to cannabis and knew our team’s professional expertise could catapult the developing cannabis sector into an established and legitimate industry,” said Minutello. “As a full vertical solutions provider, we provide more value than any of our competitors because we are fully integrated with all state regulatory platforms and offer more robust reporting with business intelligence and data visualization than any other provider. Our company has taken painstaking measures to ensure that our clients are maximizing their resources and have the compliance and operational tools they need to thrive. We believe these efforts have led to a churn rate of less than 1% in 2020, and we are thrilled to have our clients experience that level of value in our services.”
LeafLogix currently has over 1,500 signed facilities that are across every legal market in the U.S., Canada, Columbia, the Caribbean and Africa, and is eager to widen its global scope as the legalization movement forges ahead. Their ERP-lite customized for the cannabis, CBD and hemp industry has already attracted over 12,000 weekly active users to their platform, but as the industry becomes increasingly accepted by the mainstream, it will likely have to navigate even more regulatory hurdles and operational challenges in the next year.
Local retailers and distributors as well as MSOs may soon have to grapple with more intense e-commerce, delivery and banking regulations as the industry continues to mature and expand. MSOs in particular are counting on LeafLogix to prepare its platform to address a potential tidal wave of new regulations and obstacles. LeafLogix has already proved their agility with quick adaptations amid the pandemic, including reserve ahead, curbside pickup, and contactless and cashless payment. In the meantime, however, the company remains focused on reinforcing its infrastructure to serve a more modern and tech-driven cannabis industry.