Does using Metrc ensure compliance with state regulations? No, not necessarily.
Real-World Business Logic
Metrc's role in the State Track and Trace regulations is to record what you do, right or wrong.
What does this mean? Metrc does not validate logical business requirements, leaving you exposed to mistakes and fines. Humans make human errors. You don't want to submit your mistakes to the state for the auditors to view for the next five-plus years.
Make a typo and convert absurd quantities during production? Sure, they'll let you take 100 lbs to make one pre-roll. There is no weight check.
Report impossible yields? Sure, go ahead and record that 200,000-lb wet weight during harvest.
Create sub-lots or adjustments that defy common sense? Allowed.
Packaging & Labeling are Outside of Metrc
Beyond basic data entry, every cannabis product going to market requires compliant labels. Metrc doesn't print labels. So what does that mean?
- Duplicate data entry makes room for human error.
- Risk of rejection or recalls at retail
- Extra time out of your already full day
What's the cost of driving your product across the state only to have it rejected, driven back, and re-stickered? That is a real risk to any cannabis operation.
Now in states like New York, Metrc is requiring operators to print a system-generated QR code on every unit sent to market. That's no small task.
Standardizing label templates is crucial for maintaining compliance.
GMP & Inventory Controls Aren't in Metrc
Product such as edibles has a shelf life. It's critical to track expiration dates, lot codes, ingredient controls, and batch tracking with precision.
Good Manufacturing Practices (GMP) require ingredient traceability, using vetted vendors, process controls, and audit history for production. This information simply is not in Metrc -- that isn't its point. So, whereas you may be compliant with basic track and trace requirements, you're not compliant with state expectations on materials handling and process tracking if your state mandates you follow GMP or other food safety regulations.
If you can't isolate a contamination issue, you're at risk of recalling "everything made between X and Y dates," which can turn a few thousand dollars in exposure into tens of thousands or more.
This is why you'd turn to 3rd party software for:
- Ingredient management, including batch tracking
- Vendor management and procurement
- Production tracking
- Defining a taxonomy, serving sizes, allergens, and other critical data points on your items
Auditing & Reporting for Your Business
Metrc provides some basic reports, but it is not designed for business-centric reporting. It is designed for the state to see the activities you've recorded.
You need to count inventory. This is just part of running a compliant cannabis business. That function is not in Metrc.
You need documentation for accounting and tax purposes. Invoice records, payment records, and inventory balances for closing the books. This information does not reside in the state track and trace system. Tax treatment with 280e and compliance (excise taxes, sales taxes, etc.) can be make or break for your business. This isn't something to leave to chance.
Retail Point of Sale
This may be obvious, but Metrc does not provide an actual point of sale. Your cannabis-specific point of sale has to manage tax compliance, purchasing limits, age verification, and more. Metrc's purpose is to record what you did.
Details such as cash management, promotional management, roles and permissions, scanning, and general retail operations also require a formal point of sale.
Keeping you Compliant
In summary, Metrc is simply a reporting and data collection tool for the state.
Metrc won't flag issues.
Metrc won't stop you.
Metrc won't warn.
You need a trusted 3rd party system as your primary business software to overlay Metrc, stay compliant, and stay profitable.
Yes, cannabis operations simply require software... the regulations and compliance complexities demand it. Turn "lemons into lemonade," and take this as an opportunity to drive efficiencies for the business. Your accountant will thank you. Your investors will thank you. You will sleep well at night knowing that the business you put your heart and soul into can fight another day.
