Cannabis dispensaries are on the rise as cannabis becomes more and more mainstream. As this industry grows, so does the need for efficient cannabis dispensary inventory management. If you own a dispensary, it is essential to understand the different strategies you can use to manage your inventory.
This article will discuss the importance of inventory management and provide 6 tips for cannabis dispensary inventory management.
Why Is Managing Your Inventory Important?
So why do you need to manage your inventory? Inventory management is essential for any dispensary owner for a few reasons.
- It lets you keep track of your product and ensure you always have what your customers need in stock.
- It helps you avoid overordering and wasting money on products that you may not be able to sell.
- It can help you ensure your product is fresh and has not been sitting on your shelves for too long.
- Inventory management can also help you track your product from seed to sale and ensure that it complies with all cannabis regulations.
6 Tips for Cannabis Dispensary Inventory Management
Now that we’ve discussed the importance of inventory management let’s look at six tips for cannabis dispensary inventory management.
1. Choose A Management Strategy
There are a few different ways to manage your cannabis dispensary inventory. The three most common methods are FIFO, LIFO, and WAC.
- FIFO stands for First in, First Out. This method is based on the principle that the product that was received first should be the product that is sold first. The benefit of this method is that it ensures that your product is always fresh.
- LIFO stands for Last in, First Out. This method is the opposite of FIFO. The product that was received last should be the product that is sold first. The benefit of this method is that it allows you to rotate your product and sell the newest inventory first.
- WAC stands for Weighted Average Cost. This method takes the average cost of all the products in your inventory and applies it to the products sold. The benefit of this method is that it can help you save money on taxes.
2. Measure And Weigh Everything
To properly manage your cannabis dispensary inventory, it is essential to measure and weigh everything. This includes not only your cannabis products but also your packaging materials.
- You will need to know the weight of your cannabis products to calculate how much product you have in stock.
- You will also need to know the weight of your packaging materials to calculate the cost of packaging your product.
3. Pre-Package Your Inventory
Pre-packaging your inventory can help you save time and money. When you pre-package your product, you will know exactly how much product you have in each package. This can help you avoid overpacking or underpacking your product.
4. Audit Your Inventory Frequently
It is essential to audit your cannabis dispensary inventory regularly. This will help you ensure that your product is fresh and that you have an accurate product count. Depending on the size of your inventory, you may want to audit your inventory weekly, bi-weekly, or monthly.
5. Standardize Your Auditing Process
To make sure that your inventory audits are consistent, it is important to standardize your auditing process. This includes ensuring you use the same weight and measurement units each time you audit your inventory.
6. Use Inventory Management Software
Inventory management software can help you manage your cannabis dispensary inventory more effectively. There are a variety of software programs available that can help you track your product, measure your product, and audit your product. Some software options to choose from include:
- Green Bits
- Cannabis ERP software
- MJ Freeway
Inventory management is a critical part of running a cannabis dispensary. By following the tips above, you can ensure that your dispensary has the product it needs to meet customer demand.