The heart of any profitable retail operation is a strong inventory management technique. But when your organization requires sales of a hugely precious and perishable solution like cannabis, right inventory management becomes even much more essential — not to mention that it is also a legal requirement in our market.
Of course, the 1st step toward a winning inventory tactic is using the suitable inventory management technologies. With so significantly at stake more than even a single compliance infraction — namely, your license to operate — avoiding an investment in an automated inventory technique can finish up getting a really expensive error.
A dependable computer software option does significantly much more than just retain you compliant, although. With the suitable dispensary technologies in spot, you will also improve client knowledge by making certain on line menus are generally precise and up to date. This signifies that shoppers can be confident that the solution they see on line is, in truth, in stock and will be there when they arrive at your retailer. There’s practically nothing worse than spending time researching and picking a cannabis option on line and displaying up to the retailer to uncover that it is really unavailable.
Of course, as soon as you have chosen the suitable POS and inventory computer software for your cannabis retail retailer, you will need to have to get your items set up in the technique and make confident you have the suitable personnel and procedures in spot to sustain inventory accuracy. And that is specifically what we’re discussing nowadays.
How to Set Up and Keep a Compliant Cannabis Retail Inventory Program
Just before really getting into your solution information into your inventory technique, you will want to adequately organize the information. While it will take some time and work, it will be properly worth it to make certain your inventory management technique is neat and squared away from the begin.
Crucial information you will want to compile for every single solution include things like:
- Solution name
- Solution description
- Solution image
- SKU (stock maintaining unit: the product’s distinctive identifier)
- Retail value
- Supplier information
Recall — the much more detailed information you have on every single solution, the less complicated it will be to track and monitor your inventory. It is also essential to be constant with information formatting for instance, if you use the format “Product variety + Brand + Grams” for one particular solution, then you will want to make confident all other items adhere to the exact same pattern.
After you have gathered and organized all your solution information, it is time to upload them into your technique. The precise course of action will differ based on the system your computer software makes use of, but usually speaking, it is basically a matter of importing information straight from a CSV file or manually getting into the information.
With your inventory management computer software all set up and prepared to go, you are halfway there. Now it is time to appear at the persons and procedures that will support you sustain an organized and compliant inventory technique.
Inventory Personnel and Procedures
Whilst it is hugely advised to have a devoted inventory manager overseeing your store’s merchandise, right inventory management requires much more than just one particular individual. At the top rated of the chain, the company’s compliance officer ought to be creating, preserving, and revising your organization’s policies and procedures to support avert solution diversion and improper internal conduct.
Of course, the inventory manager is accountable for creating and implementing the inventory manage procedures and finest practices, along with making certain that inventory audits and reconciliations are performed routinely. Retailer managers and budtenders also play a important function in inventory upkeep, as they need to implement the procedures and are frequently the ones really performing counts and audits. When it comes down to it, budtenders are your 1st line of defense in generating confident all transactions and movements of solution are accurately recorded.
As far as procedures and processes, you will want to begin by generating a flowchart that maps out every single step of the inventory course of action — from getting, to auditing, to monitoring stock levels and reordering, just about every element ought to be documented and clearly defined. Furthermore, automating crucial procedures like compliance reporting will not only save you time and cash, but will support make certain you remain present on reports and support you prevent a compliance infraction. A top quality cannabis POS and inventory technique will be in a position to integrate straight with Metrc or the traceability technique applied in your state for effortless, automated reporting.
NOTE: In Canada, there is no centralized cannabis traceability technique. Every single licensed retailer is accountable for creating provincial compliance reports and submitting them to the government — which signifies if you are employing a generic POS (i.e., one particular that is not especially developed for cannabis retail), it will not auto-populate these reports in the suitable format, and you will have to make them by hand.
Ultimately, you will want to monitor crucial efficiency indicators (KPIs) and inventory metrics to optimize your operation. Some of these include things like:
- Inventory turnover
- Days of provide
- Solution efficiency
- Lost sales
- Gross margin
Obtaining a deep understanding of how solution moves by way of your retailer — and what things are collecting dust on the shelf — will support you maximize profit and lower loss due to expiration and damages.
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