Cannabis Producer Identifies $1.8M in Savings through Process Standardization and Improved Reporting

A Canadian Medicinal Cannabis producer that recently expanded into the recreational cannabis market.

$1.8M

annual cost savings

50%

reduction in manual data entry time

Challenge

Changes in Canadian law led to an opportunity for expansion into Canada’s recreational cannabis market, and our client experienced rapid growth. The company was concerned with the lack of integrity in their financial metrics due to manual reporting and inconsistent ERP usage. Additionally, their auditor had identified SOX compliance risks that would limit the client’s potential for sustained growth.

Discovery

Our team worked diligently with the client to understand their current state processes, by visiting multiple client sites and examining ERP data to determine the frequency of SOX non-compliance. This exercise allowed us to determine the areas with the highest financial risk and the necessary performance enhancement opportunities to reduce short-term financial risks The following initiatives were implemented:

Improved process execution by designing and executing training programs for the company’s ERP system
Reduced SOX compliance risks by creating standard process documents and accountabilities across the company’s leadership team
Increased productivity by using Lean approaches to eliminate, automate or redesign manual processes

The client implemented these opportunities and continued to grow within the Canadian market.

Value Created

As result of these recommendations and implementation, this client enjoyed both immediate and long-term financial and strategic benefits:

Cost savings of $1.8M through process standardization
50% reduction in manual data entry time through process automation
116 IT security risks were identified along with risk assessment and removal prioritization