Why You Need Cannabis Inventory Management Software in 2024

February 13, 2024
February 6, 2024
| Updated
February 13, 2024
By

Every cannabis cultivator, processor, and distributor has a unique set of needs and can face specific challenges related to inventory tracking. Unfortunately, conventional methods of cannabis inventory tracking don't satisfy today's demands, and may even result in errors being made. 

Accurate seed-to-sale inventory management and tracking should always be among the top priorities of a cannabis business, as this can impact its profitability, scaling, and compliance with state regulations.

Is a cannabis inventory software solution the ideal tool to streamline this process? That's exactly what we'll discover today. Let's go over the main reasons why you may need one and how it'll impact your cannabis operation!

How Cannabis Inventory Is Usually Managed

How do you manage inventory? Don't worry. We won't judge you. But it's important to learn about these practices in order to understand why your business may need to use cannabis inventory management software.

Many operators use spreadsheets or physical ledgers. Others prefer old-school methods and manually determine what's on hand or running low by counting inventory in their warehouses.

Although these were common ways to keep track of inventory in the past, the truth is that they're no longer reliable. One of the main issues with these methods is that they're vulnerable to human errors and miscommunications.

Why Worry About Human Errors?

Data-entry errors and jumbled numbers can result in inventory shortages or stock outs. This can negatively impact your production or sales capabilities and, ultimately, affect your cannabis business's bottom line.

However, this isn't the only consequence of improper inventory tracking. Many overlook the effects that these errors can have on other important aspects of their business. Let's evaluate the following scenarios:

  • Your team doesn’t update the inventory spreadsheet and you oversell on an item. At first, it doesn't seem like a big deal, but what do you think will happen when the buyer finds out that you must change their order? They won't be happy, and this can harm your relationship with your customers in the long term.
  • You don't have a precise accounting of the stock on hand and run out of something crucial needed for manufacturing. Now, you cannot manufacture the product you need until you re-order that item. As a result, you’ll lose money on potential sales of the product while you wait weeks for a restock.

Cannabis inventory management software can save you from some major headaches. These solutions can give you and your team a real-time, accurate picture of what your warehouses look like, ensure the materials you need to manufacture products are always available, and help you complete requests.

Additionally, seed-to-sale software with inventory tracking features can help your team avoid stock outs and shortages. You won't even have to worry about items that are expiring because all this information will be available in just one place.

Why Data Centralization Is Important

Do you know how many people in your business need access to inventory data? Well, it's a lot! This information must be accessible to your sales, management, processing, and finance teams.

However, they won't collectively work off one data source if you are manually tracking inventory. This increases the chance of someone on the team making a mistake.. If there's no proper synchronization and a change is made in one data source but not in another, this will cause discrepancies in the information each party gets.

Fortunately, one of the biggest benefits of using cannabis inventory management software is data centralization, which enhances coordination between different departments, improves accuracy and control, and simplifies the tracking process.

The Benefits of Managing Cannabis Inventory Using Software

As mentioned, using comprehensive cannabis inventory software offers many benefits to cultivators, processors, distributors, and almost any company operating in the cannabis industry.

Still not sure if you need one of these solutions? Let's take a look at the benefits that inventory-focused seed-to-sale software offers:

  • Real-time inventory tracking: Using innovative software allows you to monitor your cannabis operation from seed to sale, meaning you can keep records of everything that happens at each stage of the process.
  • Everything is centrally located: This means inventory data is managed from a central hub, so everyone sees the same thing. No team will miss an update!
  • A holistic view of inventory and sales: You'll get valuable insights into which items are on hand, running low, or need to be restocked. It's also a good way to identify what's moving faster to plan ahead or spot opportunities.
  • Easy access to data and reports: Do you need to generate an inventory list or conduct an audit? If you use cannabis inventory software, you can pull out insightful data and customized reports in just minutes. Gaining a deep understanding of your operations, strategies, and preferences has never been easier!
  • Inventory customization: From recipes to bills of materials, you can set up custom fields for each finished good, creating assemblies and production runs while keeping track of inventory and determining when it's time to re-order to avoid stockout.
  • Accessible transaction history: Do you want to keep track of purchases or sales that may affect your inventory? With the right seed-to-sale software, you'll have quick and easy access to historical transactions.
  • Mitigation of human errors: When it comes to cannabis inventory management, an automated software solution can reduce manual labor and potential human errors. Besides improving operational efficiency, you can save time and resources!
  • Improved customer relationships: Adequate inventory tracking can help you maintain the right amount of supplies to fulfill orders and avoid upsetting buyers. Plus, comprehensive solutions have integrations with customer relationship management (CMR) software, which can help you understand your customers and their habits or preferences.
  • Scalability opportunities: Do you think managing your business inventory is challenging? Well, imagine it expands to other locations. Wait, don't panic! An all-in-one cannabis inventory management system offers data centralization, which provides better control and coordination over different offices' or warehouses' inventory levels.
  • Easy compliance: With the right cannabis inventory software, especially if the chosen solution has Metrc integration, it'll be easier to comply with state regulations, as you can monitor product sales and distributions at every step of the process.

Better Tracking == Better Compliance

Cultivators, processors, distributors, and other companies operating in the cannabis industry must comply with state-specific regulatory requirements for reporting cannabis inventory and sales.

In most states, this must be done through Metrc’s track and trace software. That means Metrc compliance is mandatory for many cannabis businesses.

What would happen if you failed to do proper inventory tracking? What if you ever get audited and your information isn't organized? The cannabis industry is strictly regulated, so non-compliant businesses can face financial penalties or closure.

You can make sure your inventory is aligned with industry regulations by using cannabis inventory management software. As explained above, these solutions incorporate features that allow you to monitor the process from seed to sale, keeping records of each transaction at every step of the way.

In simple terms, when management and tracking are optimized, accounting for your inventory at every stage to comply with state regulations will be a piece of cake!

The best part? A seed-to-sale software solution like Distru has two-way Metrc integration, which automatically syncs and audits your goods in stock against the inventory in Metrc.

Looking for Comprehensive Cannabis Inventory Management Software?

Managing inventory can be challenging, but the right software will make all the difference. Distru is an example of what these solutions can do for cannabis businesses.

Our seed-to-seed software has been designed to function as an all-inclusive central hub where you can manage and track your inventory, monitor transactions at every stage of the process, ensure Metrc compliance, audit your stock levels, and more.

Find out more about how Distru can help you save over 100 hours per week with a short demo of our software. Click here to learn more!


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