Keeping track of inventory goods is critical to maintaining supplies and controlling costs for every business. Meticulous accounting and inventory control is particularly valid for cannabis businesses forced to lower prices to move stubborn perishable products. Accurately tracking every item used in manufacturing and selling goods will ensure that a company’s tax liability is reduced as much as possible – and keep them compliant with the law.
In this article, we’ll look at some of the most effective strategies for cannabis manufacturing businesses to systematically increase the accuracy of their inventory supply counts and track costs. We’ll also see how leveraging the power of Cannabis ERP Software solutions can make it all possible.
An essential step in increasing the accuracy of inventory supply counts is to develop a clear plan for tracking and record-keeping that relies on established best practices in your industry. While each cannabis manufacturing business is unique, the outline of your plan should focus on implementing the same procedures that have proven to be successful for others.
Your plan should focus on the following areas for the most effective results:
Strong organization is the cornerstone of all productive and efficient inventory supply count strategies. Every item that flows in and out of a business should have a designated storage location, and it should be everyone’s job to help ensure every item is always where it should be. This simple practice streamlines the process of counting supplies, and prevents the chance that something might be overlooked during the inventory process. In addition, keeping goods and production materials in highly visible common sense locations mitigates the risk of possible employee theft from unscrupulous team members who might otherwise be inclined to have sticky fingers.
Cannabis ERP solutions make creating organized spreadsheets easy, offering customizable supply count documents that fit the needs of every business. Not only do these document creation tools allow organizers to separate counts for easy delegation, but they also seamlessly integrate into all company systems, automatically updating information to keep all departments connected and effective.
Inventory Management Software (also known as Warehouse Management Software) provides organizations with comprehensive oversight and control of all inventory-related processes, from the procurement of materials to the production and sales of goods. These applications let companies automate routine inventory activities, allowing businesses to set up thresholds for material orders critical to maintaining operations.
In addition to establishing stock thresholds, cannabis ERP solutions factor in orders that have already been placed, even if those materials haven’t made it into storage yet. Using historical data, businesses create accurate forecasts for the materials they regularly use and ensue materials on-hand when needed. This also helps ensure quality cannabis product rotations so that nothing outlives its shelf-life before it has a chance to be sold.
RFID barcoding is standard practice for cannabis businesses, who are required to purchase unique codes from approved entities that will follow a product from cultivation to consumer. However, for materials that are not required to be assigned a tracking code by law, the benefits of creating unique item codes are often overlooked. Businesses should not neglect to use the same kind of tracking system relied on in every other industry; instead, they should have the ability to scan and assign their own codes to integrate everything possible into their inventory management systems.
Cannabis ERP Barcode Resources – Cannabis ERP solutions integrate with METRC tracking and reporting standards, including barcode tracking solutions. These solutions can be applied to any valuable goods that are integral to inventory supply counts, streamlining all ordering, receiving, and inventory management processes.
Mobile Scanning Technology – Conducting inventory supply counts by hand is too risky to be a viable solution in the cannabis industry. Not only do companies run the risk of missing important information or making a mistake, but the consequences of these mistakes can also have enormous repercussions legally and financially.
ERP Applications for Smartphones – With mobile ERP applications, cannabis businesses can ensure the accuracy of their supply counts by automating scanning and counting processes right from their phones. This ensures that nothing is accidentally counted twice, incorrectly inputted into the counting system, or incorrectly transmitted to regulatory authorities.
Increasing the accuracy of your inventory supply counts is vital to growing your business, but making it happen doesn’t have to be a complex undertaking. Instead of trying to reinvent the wheel of practical inventory accounting, companies should integrate the smart solutions available through cannabis ERP software resources to do the hard part for them.