6 Best Practices to Manage Cannabis Inventory

Managing inventory as productively as possible is fundamental for cannabis companies. But, if you’re like many of your colleagues, chances are there’s room for improvement, especially in the warehouse.

For example, without knowing how much product you have on hand, you can’t inform intelligent reorder decisions. Without visibility into how much inventory you have, you may order products inaccurately or get stuck with overstock when you order too much.

At the center of every successful cannabis business is a reliable supply chain management (SCM) strategy. As the market expands and more Americans consume cannabis products than ever before, cannabis businesses that can execute with intelligent inventory management solutions will better meet growing consumer demand without sacrificing cost-efficiency.

Cannabis ERP solutions provide the SCM and inventory management tools that companies need to keep business growing and to keep operations compliant. Establishing best practices through cannabis ERP solutions optimizes supply chain operations and helps ensure cannabis businesses meet the various inventory reporting regulations that apply in their area.

Cannabis Inventory Management Best Practices

Inventory management facilitated by a cannabis ERP solution helps you establish SCM and inventory management routines. Follow these cannabis inventory management best practices for an efficient cannabis warehouse inventory system.

Facility Organization – Keeping an operation organized is the first step to effective inventory management. Whether an establishment is large or small, maintaining a clear standard of order for all inventory storage is central to running a cannabis business. In addition, by analyzing the normal flow of goods in and out, companies can develop strategies to streamline logistics, lower cost, and ensure product rotation.

Tracking Software – Cannabis products are tracked through RFID tags, and companies need the ability to quickly scan tags as products flow in and out . In addition to providing a complete Chain of Custody (CoC) record, cannabis ERP software incorporates associated product data into company systems, such as terpene counts, THC percentages, etc. This data can help organizations cross-analyze inventories based on multiple dimensions to gain valuable SCM insights.

Complete Audit Trails – Regular audits can be established as an essential part of routine inventory management processes. Not only will this ensure that an operation is compliant with applicable local and federal tracking and reporting regulations, but it provides clear guides in the event of product recalls. Cannabis businesses must remember that people ultimately consume their products, and companies have an obligation to make sure their products are as safe as possible.

Cannabis companies need the ability to quickly track and recall any contaminated product once contamination has been identified. This is particularly true in the case of edibles, where even contamination early in the supply chain can result in foodborne illness for end consumers.

Automating Tasks – Automating routine tasks is another crucial benefit of cannabis ERP software. By combining company systems into one homogenous software solution that shares information automatically, cannabis ERP eliminates the need for companies to repeatedly and manually enter inventory datasets, financial information, and personnel records. Automated reporting capabilities help companies maintain regulatory compliance, ensuring data accuracy while shaving down labor costs over time.

Pro-tip: The degree to which businesses can automate reporting processes is dependent on the license type for the operation – a dispensary may be able to automate inventory reporting processes that a cultivator cannot, and vice versa. Check the specific automation functions permitted for your license type by consulting the information provided through your governmental reporting software website. Or ask us, we’re glad to help.

Mobile Flexibility – Inventory management should not be restricted by the location of ERP hardware. Businesses need the flexibility to perform SCM tasks from any place, at any time. In addition to streamlining RFID tag scanning for incoming and outgoing goods, today’s ERP solutions provide business applications for mobile devices that offer remote access without sacrificing functionality. Cloud-based ERP solutions offer varying degrees of flexibility by securing remote access to systems without purchasing and maintaining expensive on-site hardware.

METRC Integration – The majority of governmental reporting agencies across the U.S. rely on METRC software for cannabis tracking. Many cannabis businesses need the ability to integrate with this software to facilitate the reporting process. While the level of integration can vary by business type, maximizing the degree that an organization’s ERP software can integrate with METRC systems saves time, ensures reporting accuracy, and helps maintain regulatory compliance.

Standardize Your Cannabis Operation

Real inventory management best practices are achieved through continuous improvement that embraces technology. With a cannabis ERP solution, you have the tools they need to make sure the process of standardization is streamlined and effective. Now your cannabis company can optimize its inventory management processes and maintain compliance for sustainable growth.

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