By Seed And Beyond | Blogs |
Auditing and Inventory Control is one of the most important aspects of the Cannabis distribution, retail and dispensary businesses. Cycle count is a process of checking the inventory levels of each Cannabis product available at the warehouse and making a record of it, after which adjustments are made to reconcile physical inventory that is recorded with the track and trace system and the Cannabis software your dispensary uses.
Most times, Cannabis dispensaries face a lot of challenges in managing inventory. In a growing industry like the Cannabis industry, supply chain operates at high speeds and any issues can also slow-down an otherwise well-run operation. There are a set of guidelines given by the state regulations that determine the maximum permissible discrepancy/ deviation from the actual value. If the discrepancy is more than the allowed value, it might put your businesses at a compliance risk with your state . Hence, it is important for companies to focus on auditing and inventory tracking more frequently so as to stay compliant.
A determination by a licensee on whether a discrepancy in inventory is significant shall be made in accordance with the following:
(a) A significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to inventory of at least 3 percent of the average monthly sales of the licensee.
(b) For the purposes of this section, average monthly sales shall be calculated by taking a per month average of the total sales for the previous 6 months. If the licensee has not been in operation for at least 6 months, only the months in which the licensee was operating shall be used in determining average monthly sales.
(c) For the purposes of this section, the licensee’s acquisition price shall be used to determine the value of cannabis goods in a licensee’s inventory.
With Seed and Beyond platform powered by SAP Business One, warehouses can now easily track their inventory and run their operations efficiently while staying compliant. Cycle counts should be performed periodically so as to ensure that the actual physical stock on-hand in the warehouse matches the data in the Seed and Beyond Platform. The inventory module in Seed and Beyond (powered by SAP Business One) allows you to perform a stocktaking function and this can be done while orders are being received and shipped. This allows the business activity to continue without causing any delays.
Once the cycle count has been set up, new and existing products will be updated with the corresponding cycle count code. The system will also notify the person assigned to the particular count. If cycle count falls below the minimum stock level, the platform will alert the relevant personnel immediatelt.
With Seed and Beyond, powered by SAP Business One, you will be able to automate and streamline inventory and production processes, resulting in greater efficiency. Additionally, you also gain a complete visibility of the inventory across all key areas of your business enabling better prediction of inventory levels and reducing any shortages in inventory. This in turn will help significantly reduce inventory costs and also improve your customer service. The data is updated real – time giving you an accurate and timely insights that help you meet the supply chain demands.
To know more about the inventory and warehouse management functionality of Seed and Beyond, contact us today.
Tags – #cannabis, #cannabisinventory, #cannabiserp, #cannabisretail, #cannabisdistributor, #cannabisbusiness, #sapbusinessone