As the legal cannabis market continues to expand, cannabusinesses will need a robust inventory management solution to meet the increasingly complex requirements.
Regardless of your operation type, cannabis inventory management should be one of the highest priorities. Whether you are applying for a cannabis license or currently operating, every cannabusiness can benefit from streamlining their inventory system.
Having the right system in place reduces costs, creates labor efficiencies, automates processes, and most importantly, boosts profits.
We have compiled a checklist of the top five factors to look for in a cannabis inventory management system.
Take Control Over Your Cannabis Inventory Management
Factor 1: Dedicated Cannabis Software
Having a dedicated cannabis software is critical to efficient inventory management. From cultivators to distributors, processors to retailers, dealing with large volume sales requires your system to not only be reliable but track inventory data in real-time across departments.
Cannabis ERP software offers extensive functionality when dealing with inventory management. Easily track and manage inventory levels, sync real-time sales, and use historical data to plan ahead.
The right software can boost profitability, decrease manual errors, and streamline your entire operation. After all, the end goal is to work on your business, not in it.
Factor 2: Automatic Inventory Audits
Implementing a dedicated inventory management system allows you to conduct regular inventory audits. Regular audits ensure there are no discrepancies between the inventory you have listed and what is on the shelves.
Creating a regular schedule makes the process more efficient and less chaotic. This process should not be overlooked.
In fact, this is a compliance requirement for many legal operating states. Oklahoma requires a monthly inventory reconciliation report on the 15th of every month. California requires it every 30 days. And, our friends up north in Ontario are required to properly track, report, and submit a report on inventory by the 5th of each month.
365 Cannabis automatically generates these types of reports for your local reporting system.
Factor 3: Inventory Reporting
Keeping track of inventory is important. Even more, streamlining the production and sale of your products is critical for longevity and profit maximization.
With the right cannabis inventory management software in place, important KPI’s are easily reported on to make business-critical decisions.
Inventory turnover, days of supply, age of inventory, product performance, and gross margin are just a few that can provide valuable insights into what your future roadmap should include.
Factor 4: Recall Management
Businesses don’t produce and sell products with the intention of them being recalled, but it happens. And when it does, it is critical to be prepared and know the exact inventory batches, amounts, and locations to pull from the shelves.
This can be difficult without a cannabis-specific inventory software. If your system only tracks by product name, you could be forced to recall all your product rather than just the affected batch.
The most efficient (and compliant) cannabis inventory management systems will store all products by lot number, batch number, SKU, and barcode number. This makes it extremely easy to find and remove all the recalled inventory.
Factor 5: Automated Inventory Replenishment
Poor inventory management results in two scenarios that stunt growth: not enough stock, and too much stock. Both are problematic in that they decrease sales.
In the cannabis industry, goods are perishable. Excess products are deeply discounted, taking up valuable shelf space, or thrown out, severely cutting profits.
On the flip side, constantly running out of top-selling products will lower your sales and can affect customer loyalty.
With automated inventory replenishment, you no longer have to worry about over or under-producing. Remove bottlenecks and bloat with a cannabis inventory management that ensures your cannabusiness is operating at peak efficiency.
Final thoughts on cannabis inventory management
Your inventory is the most important part of your operation. Automated audits, managing supply, and reporting on product performance is crucial to the health and growth of your business. Cannabis-specific ERP software houses a robust management system that pulls real-time data from all areas of your operation, ensuring your inventory is up-to-date at all times.
Schedule a demo to see 365 Cannabis’ inventory management system in action.