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Importance of Inventory Management in Cannabis Industry

By Seed And Beyond | Blogs |

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Inventory is the backbone of any Cannabis operation. Whether you are a cultivator, extractor, manufacturer, or retailer, knowing your inventory at any point of time is crucial to run your business efficiently. In order to facilitate the balance between demand and supply and effectively manage the flows in the supply chain, you need a good Cannabis inventory management software.

At every stage of the supply chain, you need to keep track of real-time inventory. As a cultivator, you would need to know the number of flowers produced from each harvest or the wastage during each cycle. In an extraction lab, you would need to track all the raw materials and finished goods. In a dispensary, you need to keep track of the inventory levels of all your products to make sure the demand is met and customers are happy. Apart from this, inventory tracking is also crucial to stay compliant. Cannabis state regulations require business to provide monthly inventory reconciliation as part of their compliance requirement. Hence, in order to achieve an efficient Cannabis inventory management, here are some ways that will help you:

An Efficient Cannabis Software for Inventory Management:

Having an efficient Cannabis software to manage your inventory would solve all your problems associated with it. An ERP software like Seed and Beyond (powered by SAP) has modules specifically designed to track inventory at each stage of the Cannabis supply chain and offers a single source of truth. Having a single ERP software to manage inventory from seed to sale will help you maintain a balance between supply and demand throughout the supply chain and reduce losses. This means that you don’t run out of supply of critical high selling products and also won’t be left with an overload of products that are not in demand. Additionally, with the hep of business intelligence, you’ll also be able view the inventory data in real-time using any device.

Regular Inventory Audits:

Performing regular inventory audits from time to time ensures that there are no discrepancies in the data available in the system. 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. To know more about audits and cycle count check out this blog.

Having a regular process for inventory audits helps run your business operations seamlessly. This also helps in communicating the inventory reports to state compliance systems such as Metrc.

Real-Time Inventory Tracking and Reporting:

In order to ensure profitability and make key decisions, it is important to track and report your inventory data. An ERP software like Seed and Beyond is equipped with business analytics and predictive capabilities that enable you to analyze inventory data and track KPIs that help make critical business decisions. With predictive capabilities you can also forecast demand and supply thereby saving costs and increasing revenue.

Product Recall:

Product recall is extremely critical to the cannabis industry as the regulations and policies change from time to time which results in recalling products that don’t meet the standards. When product recall situations arise, it causes a huge impact and disrupts day-to-day sales of a product. Hence it is important to keep track of your inventory to identify the correct lot, batch, location etc. to facilitate a smooth product recall. To know more about product recall management, check out this blog.

Integrations:

Your Cannabis business uses a number of systems and platforms on a day-to-day basis to manage the business effectively and it is important for your inventory management system to seamlessly integrate with all the systems so as to keep track of all the parameters and have a single source of truth.

To know more about inventory management best practices, get in touch with us today.