Cannabis Inventory Management Checklist 2024

Here’s a quick guide to managing cannabis inventory effectively in 2024:

Area	Key Points
System Setup	Choose software, link POS, set user accounts, organize products
Regular Checks	Plan audits, use cycle counting, record differences
Compliance	Set up auto-reports, tag products, keep movement records
Quality Control	Check new products, watch expiration dates, handle bad items
Stock Levels	Monitor sales data, set reorder points, use auto-reordering
Security	Install cameras, use access control, train staff
Staff Management	Create training programs, assign clear roles, do check-ins
Technology	Check hardware compatibility, update software, back up data
Data Analysis	Choose key metrics, make regular reports, use data for decisions

This checklist helps cannabis businesses:

Track products accurately
Follow regulations
Improve efficiency
Reduce errors
Boost customer satisfaction

Use it to set up a system that works well, follows rules, and fits your needs.

Setting Up Your Inventory System

A good inventory system helps cannabis businesses track products, work well, and follow rules. Here’s how to set one up:

Picking the Right Software

Choose software that:

Feature	Why It’s Important
Follows rules	Keeps you legal
Easy to use	Saves time
Can grow	Works as you get bigger
Works with other tools	Makes things easier
Has good help	Fixes problems fast

Some options are Dutchie POS, Flourish, and Canix.

Connecting with POS Systems

Link your inventory software to your sales system to:

Update stock when you sell
Know when to order more
Cut down on mistakes

Setting Up User Accounts

Give each worker their own account:

Set what they can see and do
Use strong passwords
Keep track of who does what

Organizing Products and SKUs

Sort your products well:

Task	How It Helps
Group similar items	Find things faster
Give each product a code	Track everything easily
List different versions	Manage all types of one product

Doing Regular Inventory Checks

Regular inventory checks help keep your cannabis stock accurate. They spot problems, stop theft, and follow rules. Here’s how to do them well:

Planning Your Audit Schedule

Set up a plan for when to check your stock:

Frequency	Best For
Daily	High-volume shops
Weekly	Medium-sized stores
Monthly	Small operations

Pick a set day and time for checks. This helps:

Keep things consistent
Fit checks into your work day
Make sure checks happen

Using Cycle Counting

Cycle counting means checking part of your stock often, not all at once. It’s good for big inventories.

How to do cycle counting:

Split your stock into groups (e.g., edibles, flower)
Set a schedule (e.g., edibles on Monday, flower on Tuesday)
Count each group on its day
Look into any differences you find

Recording Differences

When you find differences between what you count and what your system says:

Use a form to write down what’s wrong
Note the product name, amount, and where it is
Find out why there’s a difference
Fix it quickly

Matching Physical and Digital Counts

To make sure your system matches what’s really on your shelves:

Count what’s in your store
Check it against your computer records
If they’re different, find out why
Update your system to match what you counted

Following Rules and Reporting

Setting Up Auto-Reports

Auto-reports help you follow rules and manage your stock better. They make reports for you on a set schedule. Here’s what they do:

Benefits of Auto-Reports
Show stock levels
Track sales
Find patterns
Help make choices

To set up auto-reports:

Pick how often you want reports
Choose what info to include
Make reports fit your needs
Check that reports are correct

Tagging and Tracking Products

Tagging helps you follow rules and keep track of your products. Here’s how to do it:

Use a special tag (like Metrc) for each item
Put the tag on the package
Scan the tag when you move the item
Update your system with the scan info

Why Tagging Matters
Stops fake products
Keeps stock count right
Makes checks easier
Builds trust with customers

Keeping Movement Records

Good records help you follow rules and manage your stock. Here’s what to do:

Write down every time you move a product
Use tags to track each item
Update your system when you move things
Keep all records with dates and amounts

Benefits of Good Records
Stops loss or theft
Keeps stock count right
Makes checks easier
Builds trust with customers

Getting Ready for Checks

Be ready for checks at any time. Here’s how:

Keep records up to date
Make sure all products have tags
Teach staff what to do during checks
Do your own checks often

Why Being Ready Matters
Avoids fines
Follows rules
Keeps stock count right
Builds trust with customers

Checking Product Quality

Checking New Products

When you get new cannabis products, check them carefully:

Look: Good cannabis has bright colors and looks shiny.
Smell: Fresh cannabis has a strong smell.
Feel: Good cannabis breaks apart easily but isn’t too dry.

Good Cannabis Looks Like This
Bright colors
Shiny look
Strong smell
Breaks apart easily

Watching Expiration Dates

Cannabis can go bad. Keep it fresh for up to a year by storing it right.

How to Store Cannabis
Use airtight containers
Keep in cool, dry, dark places
Stay away from sunlight
Use glass jars with tight lids

Dealing with Bad Products

If you see mold or other bad signs:

Find it: Look for mold, mildew, or other problems.
Move it: Keep bad products away from good ones.
Throw it out: Get rid of bad products safely.

Signs of Bad Cannabis
Mold or mildew you can see
Bad smell
Strange colors or white fuzz

Planning for Recalls

Be ready if you need to recall products:

Make a plan: Write down what to do if there’s a recall.
Teach workers: Make sure everyone knows the plan.
Talk to customers: Tell them what’s happening and what to do.

How to Plan for Recalls
Write a recall plan
Teach workers the plan
Know how to tell customers
Follow the rules

Keeping the Right Amount of Stock

Watching Sales Data

To keep the right amount of stock, watch your sales data closely. This helps you know what sells well and what doesn’t.

What to Watch	Why It Matters
Top sellers	Know what to keep in stock
Slow movers	Avoid overstocking
Seasonal trends	Plan for busy times
Customer habits	Meet customer needs

By looking at your sales data, you can spot patterns. This helps you make smart choices about your stock.

Setting Reorder Points

After you understand your sales data, set reorder points for each product. A reorder point is when you need to get more of a product.

Steps to Set Reorder Points
Find out how much you sell on average
Know how long it takes to get new stock
Set the reorder point based on these numbers

For example, if you sell 10 items a week and it takes 2 weeks to get more, you might set the reorder point at 20 items.

Using Auto-Reordering

Auto-reordering orders products for you when stock gets low. It’s a good way to keep enough stock without always checking.

Why Use Auto-Reordering
Saves time
Keeps stock levels steady
Stops you from running out

To use auto-reordering, set up a system that watches your stock and orders when needed. Many inventory software tools can do this.

Checking Stock Levels Often

It’s important to check your stock levels often. This makes sure you have what you need to sell.

How to Check Stock
Use software to track levels
Set alerts for low stock
Look at stock levels regularly

Keeping Your Inventory Safe

Installing Security Cameras

Security cameras help stop theft and watch what happens in your store. Put them in these places:

Where to Put Cameras	Why
Doors	See who comes in and out
Sales floor	Watch customers and workers
Storage rooms	Keep products safe
Parking lots	Look for problems outside

Choose good cameras that:

Record all the time
Show clear pictures
Work at night
Turn on when they see movement

Using Access Control

Access control lets you decide who can go where in your store. It’s good for keeping some areas safe. Use these:

What to Use	What It Does
Electronic locks	Only let some people in
Fingerprint scanners	Make sure only allowed people get in
Keycards	Easy to give and take away access

Set up a system to watch who goes where. This helps stop theft.

Checking Security Often

Look at your security setup often to make sure it works. Do these checks:

When	What to Do
Every day	Look at camera videos
Every week	Check if cameras and alarms work
Every month	Practice what to do if something goes wrong

Checking often helps find problems before they get big.

Teaching Workers About Security

Show your workers how to keep the store safe. Teach them:

What to Learn	Why It’s Important
Security rules	Know what to do to stay safe
How to use locks	Get in and out of safe areas
What to do in trouble	Know how to act if something bad happens

Have safety lessons often. This helps keep everyone safe at work.

Training and Managing Staff

Creating Training Programs

Good training helps workers use inventory software well. Here’s how to make a training program:

Step	What to Do
Find out what to teach	List what workers need to know
Set goals	Decide what workers should learn
Make training tools	Write guides and make videos
Give hands-on practice	Let workers try the software
Check if it worked	Ask workers what they learned

Assigning Clear Jobs

Give each worker specific tasks. This helps everyone know what to do. Here are some key jobs:

Job	What They Do
Inventory manager	Keeps track of all products
Budtenders	Put products on shelves and help customers
Rules checker	Makes sure the store follows all laws

Watching How Workers Do

Check often to see if workers are doing their jobs well. Look at these things:

What to Check	Why It Matters
Correct counting	Makes sure numbers are right
Knowing products	Helps workers answer customer questions
Being nice to customers	Keeps customers happy

Doing Regular Check-ins

Talk to workers often about how they’re doing. This helps fix problems and say "good job." Do these check-ins:

When	What to Do
Every week	Talk about what happened that week
Every month	Look at how each worker is doing
Every three months	Talk about big goals

Using Technology Effectively

Checking Hardware Compatibility

Make sure your software works with your current tools:

Tool	Why It Matters
Barcode scanners	Scan products quickly
Computers	Run the software smoothly
Tablets	Use the system on the go

Pick software that works well with these tools to avoid:

Typing in data by hand
Wasting time
Making mistakes

Updating Software Regularly

Keep your software up to date:

Why Update	What It Does
New features	Adds helpful tools
Bug fixes	Solves problems
Security patches	Keeps data safe

Updates help your system work well and follow the rules.

Backing Up Your Data

Save your data often:

Backup Method	How It Helps
Automatic backups	Saves data without you thinking about it
Cloud storage	Keeps data safe if something happens to your computers

Good backups help you:

Keep your business running if something goes wrong
Not lose important information

Looking at New Tech Options

Try new tools to make your work easier:

New Tech	What It Does
AI (Artificial Intelligence)	Helps make smart choices about your stock
ML (Machine Learning)	Finds patterns in your sales data
IoT (Internet of Things)	Tracks your products in real-time

Using new tech can help you:

Work faster
Make better choices
Stay ahead of other stores

Analyzing Your Inventory Data

Choosing Key Metrics

Pick the right numbers to track your inventory. These help you see how well you’re doing and where to improve. Here are some good ones to use:

Metric	What It Tells You
Inventory turnover	How fast you sell and replace stock
Gross margin	How much profit you make on each product
Days inventory outstanding	How long items stay in stock
Stockout rate	How often you run out of items
Overstock rate	How often you have too much stock

Making Regular Reports

Make reports often to keep track of your inventory. This helps you spot trends and fix problems. Here’s how:

Pick when to make reports (daily, weekly, monthly)
Choose a tool to make reports (spreadsheet or inventory software)
Decide what to put in the reports (sales, stock levels, product info)
Make and look at the reports to find ways to do better

Checking Product Turnover

Product turnover shows how fast you sell and replace items. Here’s what to do:

Figure out product turnover: Total Sales ÷ Average Inventory
Look at turnover for different products
Change stock levels based on what you find

Using Data for Decisions

Use your inventory data to make smart choices. Here’s how:

Look for patterns in your data
Use old data to guess future needs
Keep the right amount of stock
Find and fix problems in getting products

Conclusion

Main Points to Remember

Good inventory management is key for cannabis businesses. Here’s what to keep in mind:

Key Point	Why It’s Important
Clear rules for inventory	Keeps everything organized
Regular stock checks	Finds problems early
Use data to make choices	Helps you stock the right items
Use oldest stock first	Keeps products fresh
Keep good records	Follows laws and helps with taxes

Keeping Your System Up-to-Date

To keep your inventory system working well:

Task	How It Helps
Update your rules often	Follows new laws
Learn about new tools	Makes work easier
Look at your data	Finds ways to do better
Train workers	Everyone knows what to do

FAQs

What is the supply chain of the cannabis industry?

The cannabis supply chain is how cannabis products move from growing to selling. Here are the main steps:

Step	What Happens
Growing	Farmers grow and pick hemp and cannabis plants
Making Products	Companies turn plants into things like oils and edibles
Testing	Labs check if products are safe to use
Moving Products	Trucks take products to stores
Selling	Shops sell products to customers

Each step must follow rules and keep products good. People in the industry need to work together to make sure customers get what they want.

Here’s what each step does:

1. Growing

Farmers plant and care for cannabis
They pick the plants when ready

2. Making Products

Turn plants into different items
Make things like oils, foods, and flowers to smoke

3. Testing

Check if products are safe
Make sure they follow state rules

4. Moving Products

Take items from farms to factories to stores
Often use special trucks

5. Selling

Stores sell to customers
May have their own brand names