Running a retail cannabis operation?
Then you know first hand just how tricky inventory management can be. The current legal climate is unpredictable. Cannabis businesses are subject to harsh and in many cases, confusing regulations. At the same time, dispensaries are also dealing with large amounts of cash and flower, both of which make them highly susceptible to theft.
Maintaining an efficient process for managing inventory is therefore crucial as it mitigates risk, lowers costs, and generates greater profits. It can also provide a better customer experience.
Here are five tips for streamlining inventory management.
1. Set Up a Barcode and Scanning System
Integrating bar code technology can transform your dispensary. With a bar code, you can simply scan the inventory, and it will be added to your POS. This method is fast and accurate. Manually typing a product’s information is tedious. It’s also subject to human error. Barcodes enable you to manage products seamlessly. Plus, you’ll know exactly how much stock you have so there won’t be any surprises for you or your customers.
2. Use Real Time Data for Decision Making
Having an inventory system that allows you to track products in real-time is vital. Maintaining the right stock levels is tough, especially when it comes to flower. The logistics of storing and supplying fresh flower are challenging to say the least. You need enough product to meet customer demands, but you do not want too much supply on your hands either. Real-time data can help you make informed inventory decisions for better stock control.
3. Maintain Detailed Inventory Records
Still working with Excel spreadsheets for managing your dispensary’s inventory? There’s no reason to make inventory management more difficult than it needs to be. Use a point-of-sale-system to track inventory. With an inventory system in place, you can quickly access crucial information such as product purchase date, current stock levels, number of products sold and much more.
4. Conduct Regular Audits
Theft, unfortunately, is a big concern for retail cannabis operations. One of the best ways to prevent theft is by performing regular inventory audits. However, this can be a time-consuming process. Hence why a lot of retail cannabis operations don’t do it. But it doesn’t have to be this way. The right POS helps you efficiently manage your supply chain, saving you time and money.
5. Monitor Inventory Metrics and Reporting
Managing inventory is a balancing act. Often, dispensaries must pay for flower upfront. Keeping an eye on inventory metrics and reporting empowers owners to make informed purchasing decisions. Understanding key information such as what strains people are purchasing or what strains drive the highest profit margin is essential. Plus, having the ability to access these metrics quickly allows you to better gauge your product supply chain for more accurate demand forecasting.
An efficient cannabis dispensary inventory management system will give your business a competitive edge. However, to employ these techniques, you’ll need the right POS. Download our buying guide to learn more about what industry specific option is best for you.