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Cannabis Inventory Management: How To Maintain Dispensary Stock

by Hasum | | 420 Smoke Shop Near Me | 0 Comments

What Is Inventory Management?

Inventory management refers to the various processes used to source, store, and sell your goods. From the time you order your stock from a supplier to the time you sell your stock to customers, you need to keep track of where it is, how much you have, how much it should cost, and when you need to order more.

Taking the right approach to inventory management is important for all kinds of businesses. The right strategies help businesses know where their stock is, when it needs to go on the shelf, and how much they sell each day. Over time, it can also help you improve your stock orders and even boost your sales.

Proper inventory management helps businesses save money over time, especially as you end up ordering less of what you don’t need and more of what you sell. This also has an immensely positive effect on cash flow within your business. It also helps improve customer satisfaction as popular items are always available.

Inventory management has evolved over the past few decades. While it used to involve a lot of tedious counting and paperwork, you can now keep track of your stock, order more, and access valuable analytics using digital software. It’s important for every type of business and there’s no excuse to not take your inventory management seriously.

Why Cannabis Inventory Management Is Important

Why Cannabis Inventory Management Is Important

Cannabis businesses can’t afford to slack off when it comes to inventory management. Handling cannabis products comes with a variety of unique obstacles and pitfalls that business managers need to be aware of. Fortunately, proper inventory management can help you avoid running into all kinds of problems.

Proper dispensary inventory management can help you keep the right products on the shelves and avoid your cannabis products from losing their quality or expiring. As such, you’ll impress more customers, make more sales, and avoid missing out on potential profits in the future.

It’s also important for legal reasons. When selling cannabis products, you need to regularly send reports to your state government. Point-of-sale (POS) and inventory management software can help cannabis businesses automatically send compliant reports and even help when it comes to filing taxes.

Inventory management has various other perks for cannabis businesses. It can help you prevent theft, identify problems in your sales strategy, and help you keep track of the most popular cannabis products to sell. That’s why every cannabis business should work on improving its inventory management strategy.

Staying Compliant

Running a cannabis business comes with many unique obstacles. Cannabis is still heavily regulated in the United States, meaning you have to deal with extra rules on how you can sell, store, display and market your products. This also comes into play with inventory management – you must ensure your stock is accounted for and traceable by the state.

States keep track of how much cannabis your business is storing and selling. This is especially important for tax purposes as selling cannabis products involves high state taxes. As such, you need to ensure you have some way of efficiently reporting your inventory and sales to your state government.

Most businesses do this using cannabis point-of-sale software. These tools are developed specifically for cannabis businesses, meaning they’ll automatically make compliant reports for your state government. As such, it’s one of the most useful things to consider when you choose a dispensary POS system.

Trying to make regular reports manually is too much work for most businesses, so it’s best to use digital tools. However, there are still certain things you’ll need to do manually. For instance, checking your stock to ensure that it’s in line with your system is important to avoid certain business pitfalls.

Audit Your Stock Regularly

Audit Your Stock Regularly

Stock auditing is an incredibly important operation for any kind of retail business. Even if you’re using a digital system to keep track of what’s in your store and your warehouse, many things can go wrong. Inventory may be misreported due to human error. What’s more, you also need to consider the possibility of theft, stock going missing, or stock becoming damaged.

Because of this, it’s important to audit your stock regularly. This often involves manually checking the stock on your shelves. Failing to audit your stock can result in you ignoring theft, making poor ordering choices, or even getting in trouble, so make sure you implement some kind of regular auditing strategy to help your business.

You might want to audit your stock by printing off a list from your inventory system and ensuring it matches what’s on your shelves. Trying to count every single product in your dispensary can be a hassle, so you might want to do one type of product each day. For instance, tinctures on Monday, edibles on Tuesday, and so on.

Finding out that your physical inventory doesn’t match what you have written down can help you identify all kinds of problems. For instance, you might find out that your customers or staff are stealing products. You might discover that there’s an error with your inventory reporting. Whichever way, carry out regular audits for effective inventory management.

Use The First In, First Out (FIFO) Principle

When it comes to managing inventory, you want everything to be as smooth and efficient as possible. When you’re constantly putting out new products, it can be easy to lose track of your inventory. What’s more, you might end up losing out on sales if old products are left at the back of the shelves to rot. That’s where the FIFO principle comes in.

First in, first out (FIFO) is commonly used in retail stores to ensure that older products are sold first. It usually involves asking staff to ensure they place newer products at the back of shelves and bring older products forward to ensure that customers pick up the older products first.

Although many cannabis products have a long shelf-life, they can still degrade and lose some potency and flavor over time. As such, using the FIFO method can help ensure that you don’t end up with unsellable products that have spent too long at the back of the shelves. This is especially important with cannabis edibles but can also apply to other types of products.

FIFO can also help your business with inventory management in other ways. It can ensure that expired, damaged, or tampered products are removed from the shelves as quickly as possible. It can also help you find products more easily when you’re carrying out audits. Plus, it’s simple and easy to follow and makes your business look more attentive.

Plan Ahead To Remain Well-Stocked

Plan Ahead To Remain Well-Stocked

Inventory management isn’t just helpful for compliance and taxes. It can also help you keep your customers satisfied and even enhance your sales when carried out correctly. For instance, by knowing which products you’re understocking or overstocking and which products are flying off the shelves, you can make better ordering decisions.

By keeping track of your inventory, you can identify what products you need to order and what products you can order less of. You might find that you’re running out of cannabis gummies daily but your cannabis topicals remain on the shelves for weeks. You can then use this information to order gummies more regularly and topicals less often.

It can also help you make better decisions for the future. If hybrid strains are your most popular sellers, you can order more unique hybrid strains from your suppliers. If you aren’t selling many patches, you can make your stock orders cheaper by ordering less or even removing them from your stock completely.

Adapting your orders based on inventory reports will help you improve your business over time. Customers will find more of what they want, you’ll make more sales, and your brand will continue to expand. Using the right software can even help you identify trends in your sales well in advance.

Use Cannabis POS Software

Inventory management can be tedious at times. Knowing exactly how much stock you have, ordering the stock you need, and maintaining compliant reports can take a lot of work. Fortunately, you can now use handy software tools to help you with all of these operations and more.

There are many cannabis inventory management tools out there designed to help you keep track of stock and send compliant reports to the state government wherever you operate. However, if you want to get the best software possible and handle even more operations with one handy suite, you might want to look into cannabis POS software.

Cannabis POS software is designed to help you make your point-of-sale more efficient. It can help you keep track of customer profiles, take payments, and make sales much more quickly. On top of that, many POS software tools also have built-in inventory management features to help you manage your stock.

The right software can help you improve your inventory management in various ways. For instance, sending reports for compliance and handling taxes will instantly become much easier. You can also collect valuable sales analytics that will help you manage your stock better and boost your sales. Of course, it can also help keep track of all the stock in your business and help customers find what they need.

Keep Your Products Secure

Keep Your Products Secure

Inventory management isn’t just about counting your stock and ordering more – your dispensary security also comes into play. Theft is a legitimate concern for all kinds of retail businesses, including cannabis stores and dispensaries. Not only do you need to consider the possibility of customers stealing products, but also the possibility of staff members stealing or tampering with stock.

As such, it helps to improve the security of your business. You should have security cameras in all parts of your premises where products are stocked or on display. You should also have security cameras in your warehouse to ensure no staff members misbehave. Many security cameras nowadays allow you to stream footage to your computer and also record videos to cloud storage.

You should also ensure that products are well-secured. Many dispensaries keep products behind glass displays to ensure no opportunists try to snatch them. Cannabis products also legally must be kept in tamper-proof packaging. This can help prevent thieves from taking products out of their packaging.

Taking a few extra security measures helps deter would-be thieves from snatching stock. Plus, if you audit your stock and find out that certain products are missing, you can use your security footage to find out if it’s due to thievery. As such, it’s important to take security important in your cannabis business.

Conclusion

If you want to improve your sales, ensure your shelves are well-stocked, and make your business run much more efficiently, proper inventory management is the key. With the right inventory management strategies and the right software, you can enhance your cannabis business in all kinds of ways and impress your customers immensely. For more guidance on running and promoting a cannabis business, visit Cannabis Promotions.

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