Top 5 Ways to Avoid Inventory Errors for Marijuana Retailers
One of the easiest ways to lose money at your dispensary is not keeping a close count of your inventory. It’s imperative for marijuana retailers to avoid inventory errors so they can remain profitable and in compliance with state regulations. There are several ways to prevent these problem before they end up costing you a lot of money and frustration.
The Importance of Automation
Attempting to manage your inventory with manually with spreadsheets and conventional stock counts could easily land your dispensary in the hot seat for compliance infractions. Human errors are bound to happen over extended periods of time and it’s simply not worth the risk.
Tracking your inventory with using an automated point-of-sale will help your stock counts stay accurate and organized. It’s is extremely beneficial for marijuana retailers to use a POS system that integrates directly with a state seed-to-sale tracking system such as Metrc to avoid inventory errors. Not only does it send sales and inventory report automatically, it does it in real time as soon as a transaction is complete.
State regulation stipulate that marijuana retailer reconcile their physical inventory with their internal records at least every 14 days. Establishing a process with your dispensary staff to reconcile inventory efficiently and effectively is imperative to keeping an accurate record of your stock.
This process is infinitely easier when you using an advanced point-of-sale software that has a built-in inventory management system. Updating product counts can be done digitally and that’s only if there are discrepancies in the system. If your dispensary uses pre-packaged products, reconciling your inventory will be effortless and your bi-weekly count won’t be as burdensome.
Employee Theft Deterrents
It’s up to the owners and managers of marijuana dispensaries to set the tone and policy when it comes to employee theft. It’s been a long road to legitimize the cannabis industry and those employees who seek to undermine that for personal gain need to be dealt with accordingly. Whether it’s offering discounts too often, weighing heavy, or outright theft their needs to be accountability for all staff members.
Putting into a place a zero tolerance policy will make it perfectly clear what’s expected of dispensary employees. Reinforcing the fact that all inventory is tracked by the cannabis point-of-sale system so attempting to find loopholes is futile and will result in an immediate firing will serve as an effective deterrent.
Never Overbuy Inventory
One common mistake marijuana retailers make is overbuying inventory in fear that they will run out of product. More often than not, dispensaries end up throwing out expired or spoiled product rather than running out of something. Often times, storefronts end up offering deep discounts just to move the product before it goes bad resulting in financial losses.
This is where using dispensary customer insights and sales data can help you avoid inventory errors. Analyzing what sells well from month to month or year to year can inform the way you purchase inventory. Utilizing a powerful cannabis POS system can provide this type of information so your not overbuying products that will end up costing you money down the line.
Know Your POS
Understanding the inventory tools available in your dispensary point-of-sale is probably the best way to avoid inventory errors. Once your employees understand how the system works and how easy it is to manage the inventory on your shelves, making mistakes will seem like a challenge. You’ll be notified when stock counts are low, when products are due to expire, and if there are any discrepancies that need to be resolved that day.
Analytics will help you prepare for the busy times and the slow periods throughout the years so you’re not wasting your money on surplus stock. Establishing inventory protocols that compliment your dispensary software will help avoid inventory mistakes across the board. IndicaOnline provides one of the most intelligent inventory management systems on the market and automates compliance reporting as well as tracking every gram. Schedule a demo to learn more about how we can make your marijuana retailer more efficient.