cbdMD
cbdMD Saves Over $125k Annually with Move to Acumatica and NexTec Group
About cbdMD
cbdMD produces a range of CBD products, including gummies, capsules, oil tinctures, topicals, drink mixes, botanicals, and bath bombs—all sold directly to consumers through its successful eCommerce site. cbdMD, the publicly-traded leader in the hemp-extracted wellness category, operates in a dynamic industry, and to ride the wave, it needs bulletproof technology running 24/7/365.
Recently, cbdMD changed from its ERP vendor, Oracle NetSuite, and moved to NexTec Group and Acumatica to deliver that reliability.
Industry
CBD
Location
Charlotte, NC
System Selected
Acumatica
Key Results
30% Reduction in Fulfillment Resources
$125,000 in Annual Savings
Improved visibility and data leads to informed decision making
NexTec ensured on-time, under budget implementation
Solutions
Time to Pivot
“The company had recently gone live with NetSuite when we learned that Oracle would no longer support companies in the CBD market space,” explains Casey Lassiter, ERP Manager for cbdMD. “We had to pivot quickly, so we knew we would need a business partner with experience in this industry to help us identify and implement the best solution. That’s when we found NexTec.
The company first reviewed multiple solutions, Sage Intacct, SAP, Microsoft Dynamics, and Acumatica. “We then narrowed the list to SAP and Acumatica,” Lassiter recalls. “I was initially leaning toward SAP simply because of the name recognition, but once we spoke to NexTec and saw a demonstration of Acumatica, we knew it was the best option. NexTec was responsive, they have excellent references from companies in this space, and they have deep expertise with retail eCommerce companies as well.”
NexTec worked closely with Lassiter and his team to plan the implementation. “They clearly understood the urgency of our situation and allocated the resources to our project,” he says.
On time and under budget
In addition to the migration from Oracle NetSuite to Acumatica, cbdMD was able to streamline sytems and consolidate its CRM from Salesforce to Acumatica CRM and Expensify to Acumatica Expense Entry.
“It was a massive project, but we completed it on time and under budget,” he says. “NexTec’s experience really came into play here. They looped in several consultants, each with specific skill sets. They kept the project on track while still being able to adapt to changes along the way.”
eCommerce Integration
cbdMD’s operates several branded websites serving customers globally. NexTec integrated the Magento-based sites with Acumatica using a tool from an Acumatica ISV, Kensium. Another company site that runs on WooCommerce integrates using the third-party tool, AcuWoo. The tight integration keeps commerce flowing around the clock, in any currency.
Lassiter credits NexTec’s consulting team with streamlining the transition. “Our eCommerce sites are essential to our operation, and they made sure we could continue to access and process orders throughout the change.”
30% Reduction in Fulfillment Resources
“Acumatica’s interface and workflows are much more fluid and straightforward than our legacy ERP” he says. “As a result, we streamlined our pick, pack, and ship processes and have reduced labor hours to fulfill by 30%. Acumatica offers multiple options for picking, including wave and batch, and depending on the time of day and workload, we can switch and use the most efficient method. We’re now able to process 1,000s of orders in a day. On Cyber Monday, we shipped over 10,000 orders.”
Optimizing Quality and Traceability
The cannabis industry faces immense regulatory pressure and cbdMD maintains NSF cGMP 455 compliance so products must adhere to rigorous testing and compliance mandates. In addition to forward and backward lot traceability, the company must test its products to ensure quality and consistency.
To streamline quality management, NexTec recommended an Acumatica Marketplace solution, Quality Management Suite, from eWorkplace Apps. “It’s ideal for our needs,” says Lassiter. “We can track the results of all our testing right in the application. It’s eliminated a lot of paperwork and spreadsheets and ensures we can easily produce the details needed in the event of an audit or a recall event.”
Data-Driven Decisions
As a high-volume, sales-driven organization, cbdMD needs tools that deliver visibility into sales activity, commissions, and profitability. Management gained a direct view of daily activity by eliminating disparate applications and combining ERP and CRM into a single solution. “We no longer have to check two systems to get the full picture,” says Lassiter. “Everyone is on the same page. Real-time access to our business data is essential for better planning and decision making.”
cbdMD worked with NexTec to build a robust financial reporting platform that includes business intelligence (BI) tools and Excel-based reporting tools that directly integrate with Acumatica. “We can now look at our business data from every angle,” Lassiter says. “We also create a daily snapshot report of sales that Acumatica emails to stakeholders each morning. It’s now possible to analyze sales trends and customer retention rates more accurately since we can combine Acumatica data with Google Analytics.”
Equipped for the Future
The success of its transition to Acumatica gives cbdMD confidence to expand its use of the application. For example, in the coming months, the company plans to transition the wholesale arm of its business into Acumatica, adding integrated credit card processing to handle payments for wholesale orders within the system.
“cbdMD has big plans for the future,” concludes Lassiter. “And we’re well-prepared to handle whatever is next.”