When Metrc Integrations Go Wrong...
RMCC has seen "under the hood" of 20+ canna-tech companies.
And guess what… we all feel the same way. We are building the plane at the same time we are flying it. It’s challenging enough operating a cannabis business, however, developing seed-to-sale cannabis technology across multiple states is another form of chaos.
Cannabis operators and software providers already fight to comprehend and interpret ever-changing state cannabis regulations. That doesn’t stop state regulators from continuously publishing additional rules and regulations. Not only staying informed of the latest rules but how those rules translate to technical requirements is a constant struggle for anyone.
The good news is you're not alone.
cannabis technology solutions share a common set of obstacles
Let’s explore these top 6 pain points for Metrc integration development and discuss how RMCC can do the heavy-lifting for you allowing you and your staff to focus on what you do best.
The Top 6 Pain Points for Metrc Integration Development:
Different behaviors in the sandbox vs live environment:
Sandbox environments often do not offer a realistic view of how the cannabis software will behave when interacting with Metrc. Including, but not limited to, endpoints that do not work in the live environment or behave differently altogether. This can leave some ugly surprises in store for cannabis operators and leave you as the technology provider with angry and unsatisfied clients.Unclear Metrc API documentation with little to no technical communication with Metrc support or engineers:
The naming conventions used in the User Interface do not 100% align to the naming conventions in the API documentation. In addition, some endpoints are not open and approved by regulators in specific Metrc states.Metrc-integrators need to know the “goldilocks zone” of integrating into Metrc:
As an integrator, you should never be 100% dependent on the Metrc API. You should have a safeguard to allow the business to keep operating even if the Metrc API is unstable.Decrease the load by not overwhelming the API with repetitive information:
Metrc API integrations are easily overwhelmed, especially when duplicate, redundant information is submitted for each transaction. Be a part of the solution, not a part of the problem.Staying ahead of regulatory updates and Metrc features:
Staying on top of regulatory changes, bills, bulletins, and emergency regulations usually falls on the shoulders of product managers (PM). While PM’s are managing engineers, developing roadmaps, and interacting with customers, it is a lot to ask for them to be the source of truth for compliance updates. As a technology solution, if this sounds like you, you are asking for important product updates to fall through the cracks, impacting cannabis operators’ flows and risking compliance violations. It’s also challenging for PM’s to interpret cannabis regulations and understand their impacts on workflows for licensees when they have never operated a cannabis business. There is the “spirit of the law” and the “letter of the law”, and misinterpreting can have dire consequences for you, the product, and most importantly, the plant-touching cannabis businesses. That’s a lot of responsibility resting on your shoulders.Metrc API endpoints being an “all or nothing” situation:
The Metrc API endpoints should not be an “all or nothing” situation. If a Retailer would like to submit sales transactions, but not adjustments, the technology solution should give the operator this control in their business. This flow is absolutely critical, especially when an endpoint is acting up by submitting duplicate transactions or none altogether.
as a software provider, you have a responsibility to implement safeguards and remain adaptable
Operators may need to adapt to the regulatory framework and state-sanctioned seed-to-sale tracking, but they shouldn’t have to adapt to your platform. In return, the software solution should never be dependent on the Metrc API. Too deep of a Metrc API integration is a liability for the licensed cannabis business.
When cannabis operators don’t have the resources they need to understand how the technology solution interacts with Metrc, they’re vulnerable to missing inventory API integration errors. By the time the licensee catches on, often the inventory errors have compounded for months leaving the operator to undertake a lengthy, stressful, and resource-intensive inventory audit process.
If you’re an owner or employee of a cannabis technology solution and you’re completely overwhelmed, it’s not your fault. There is so much to keep track of in each state and it doesn’t stop. Here are just a few examples to name a few:
License and supply-chain structure:
Each state has regulatory requirements on how licensees can conduct business with one another, where taxes are applied, who collects the taxes, how many licenses an owner can obtain, and how adult-use vs medical impact the supply chain.Packaging & labeling:
Labeling requirements are different in every single state. No two states are the same. Labeling is a difficult piece to the puzzle because you are creating a tangible product (the label). Each state’s requirements specify data points including cannabinoids, terpenes, product type, the structure of the data point (ie. 0.03% CBD vs .03% CBD potency), and who in the supply chain is responsible for which type of label and/or warning statement.Tax reporting & method of collection:
Taxes, the most complicated area of cannabis compliance. Some states require tax collection between businesses, at the time of sale to the consumer, and while harvesting. These taxes may include excise tax at the state level, local business tax, state sales tax, or the controlled substance tax. In addition, the taxes must be applied in a specific manner, such as gross receipt, net sales, cumulative, or stacked.Purchase limits with the equivalencies:
Each state’s purchase limit requirements are unique to the state. Some states require potency equivalencies while others require a maximum size and/or potency of manufactured products. As a point-of-sale, this means the inventory data must be tracked by the unit, potency, content weight in grams, and the overall volume or net weight of the product.Definitions & time periods:
Understanding the timeframes to report to state-traceability, inventory reporting, patient reporting, and tax reporting is critical for licensed cannabis businesses. In addition, definitions from state to state are not standardized. All this requires heavy support; account managers, and product managers have to become experts in each state the technology solution provides services to.
Through RMCC’s Source of Truth Regulatory Matrixes we make compliance more clear. Let RMCC take the heavy burden of varying and ever-changing state-by-state regulatory compliance off your shoulders so you can focus on providing the best possible products to your customers. The matrix is a blueprint to your roadmap for expanding into new markets and providing the best customer experience to your customers.
Rest assured that RMCC has your technology company’s compliance firmly in hand. With the easy-to-use table, find critical answers in minutes. You will no longer need to scour regulations and statutes to find the answers you need.