4 Tips: Managing Cannabis Inventory
Managing your cannabis dispensary can be all tedious and possibly frustrate you, from the stress of tracking a product on an individual basis to the supply chain issue. What if there are tips that will help your cannabis dispensary thrive with little or no issue. In this article, I will guide you through 4 tips that will help you effectively manage your cannabis dispensary, but before that, let's define what cannabis inventory is and why it's important in your journey through the cannabis industry.
What is cannabis inventory management?
As part of the broader supply chain, inventory management involves activities such as monitoring and supervising sales (both from suppliers and customers), storing and arranging your goods, controlling the amount of merchandise on the floor for sale, and fulfilling orders.
In contrast to conventional stores, there are many complexities to cannabis inventory management, where strict laws govern the way dispensaries can purchase, store, show, and sell products. To ensure enforcement, most legal cannabis states mandate that the inventory operations be synced with a state traceability scheme, such as Metrc.
Now let’s talk about the tips that you need to manage your dispensaries;
Standardize the Inventory Audit Process
To ensure that you have correct reporting and remain compliant, physical inventory audits are absolutely critical. Your company will lose profits, make bad ordering decisions, and be slow to capture internal theft and fraud without accurate information.
As a dispensary, if your physical product is severely removed from what is registered, your company is at greater risk of fines and triggering a full state audit. For this purpose, we suggest creating a regular inventory audit operating procedure, preferably performing a thorough audit of the entire inventory at least once a week. Most typical distributors only conduct full stock audits once or twice a month, a fifth, or even a few times a year.
A credible way to audit your entire inventory for 30 days straight without having to count each day is cycle counting. The best way this can be done is by dividing and make sure you count a product in a specific category on a particular day within the week.
Maximize efficacy with the correct resources
Trying to keep track of your inventory and handle it by hand would make you vulnerable to mistakes and waste your precious time. Since it can be so time-consuming to handle inventory, you must do whatever you can to streamline your team's processes and prevent mistakes.
Giving the right technology and resources to the workers would help reduce the arduous working hours of auditing.
Integrate your tool stack
You must find a POS partner that integrates with the systems that are already an integral part of your organization while looking for software solutions to help you manage your inventory. Although freeing up your resources to concentrate on big-picture plans, you'll want to find something that can easily slide into your current processes.
Metrc (Marijuana Policy Monitoring Reporting Compliance) integration is the first and most significant integration for cannabis dispensary inventory management applications. If you have worked for some time in the cannabis industry, you probably know everything about Metrc, or you can check up serviceganja for more info on Metrc.
But Metrc is not the only integration that will be required for most stores. A good point-of-sale device should be able to handle front-end tasks such as payment and discount collection and back-of-house inventory management and compliance monitoring and reporting features.
Plan for the worst
Also, businesses that put great effort into inventory preparation will run into circumstances that throw out of sync their best-laid plans. External factors can lead to more rapid or slow sales of specific products than anticipated. Spikes in sales can cause product shortages based on seasonality, discounts, and regulatory changes.
You may order a new product that does not resonate with consumers, and your inventory takes up space on your shelves that should be delegated to better-selling items. Such conditions can be predictable or may take you by surprise. Fresh laws, cash flow problems, inventory miscalculations, or vendor delays can involve other circumstances that may be out of the company's control.
Inventory management in retail cannabis dispensaries is the process that drives development and stability. Your ability to store, track, and evaluate your stock efficiently enables your organization to be more profitable, flexible, and responsive to consumer demands. Check out serviceganja to learn more about managing your dispensary.