Have you been searching for tips and tricks to help with your dispensary inventory management or cannabis tracking? Then keep reading!
There is no time for excuses when it comes to dispensary inventory management and how your cannabis dispensary undertakes cannabis tracking. Although cannabis dispensaries are experiencing a massive growth rate across the United States, they are also one of the most highly controlled and regulated industries in the country.
Any mistakes in your inventory management can lead to fines and, in worst-case scenarios losing your dispensary license. No one wants to lose a business they’ve worked hard to establish through a clerical error or mistake.
You can’t just rely on the accuracy of wholesalers and the honesty and skills of your employees to successfully manage your stock levels. By taking a proactive approach to dispensary inventory management and cannabis tracking, you’ll be much better prepared if you do get audited by the state or local government.
In the following article, we are going to take a closer look at tips for managing inventory in a cannabis dispensary or vape shop and different retail inventory strategies.
Retail inventory strategies that work!
Knowing exactly how much stock is coming in, how much you’re holding, and when that stock is going out is key to running any business, not just a cannabis dispensary. Not only will better inventory management ensure that you avoid any costly mistakes, but it will also improve your business’s profitability and help to streamline the day to day operations of your cannabis dispensary or vape shop.
Regardless of what the industry is, retailers across the country use similar strategies for managing their incoming stock. You need to ensure you know how much cannabis or cannabis products are entering the store, how long they’re in stock for, and when they’re sold.
Retail inventory management strategies for your cannabis dispensary!
If you take away cannabis or cannabis products, dispensaries are just another retail business. You have stock coming in and stock going out. However, the consequences of not managing your dispensary stock accurately are much more severe than many other retail businesses.
Below we’re going to look at some of the most retail inventory management strategies that businesses use and how you can incorporate them into your cannabis dispensary:
- First-In, First-Out (FIFO) – This strategy is best suited to any product with shelf life or used by date. It means that the products which entered your store first are used to fulfill orders first. Using this strategy is a great way to ensure that fresh cannabis flower, concentrates, or edibles are sold before they reach their use by date and must be destroyed. It’s going to save a lot of money on stock sitting and going out of date on the shelf. For any business using fresh items with expiration dates, this is the best strategy to employ.
- Last-In, First-Out (LIFO) – This strategy may work for any non-perishable items, but it’s not the greatest strategy for any cannabis dispensaries. Using this strategy, the last things that are bought into the dispensary are the first items sold. You could use this strategy with a specific item that was on special or has a short sell-by date, but overall, it’s going to result in a lot of stock being wasted.
- Just-In-Time (JIT) – Using this strategy employed by many large retailers, you see stock purchased and put on display or shelves as required. For example, large amounts of winter clothing going out onto shelves just before the cold weather of winter arrives. It’s a great way to reduce the amount of stock that you’re holding, but hard to implement accurately in a cannabis dispensary.
Of all these options, the one best suited to a cannabis dispensary to assist with accurate product management is the FIFO. It’s going to ensure that products are sold before they expire and go to waste sitting around on shelves. Many dispensaries are required to have up-to-date testing or analysis of their cannabis products. These laboratory results won’t last forever, and most have a 6-12-month expiry date requiring products to be re-tested after that date.
When it comes to any stock, including cannabis, with an expiry date, the sooner you sell it, the better it is. No one likes getting stock that’s starting to get close to its use-by date, and cannabis is no different.
Tips for Managing Inventory in A Cannabis Dispensary Conclusion
If you’re serious about your cannabis business, then you must have an accurate, efficient, and easy to use cannabis dispensary inventory system in place. It’s the only way to ensure that you have all the inventory for your dispensary or vape shop under control. Proper inventory management practices will help ensure that you don’t run into any issues. The good news is that there are a variety of different options available for cannabis dispensaries to choose from, and there’s sure to be one to suit your dispensary.