Maintaining accurate inventory records is essential to success in cannabis retail, however, it can often be a struggle. There is a lot to manage when you have 3 versions of inventory to keep in sync between your track and trace system, your point of sale, and your physical product inventory.
When these values don't match, it will require effort, time, and labor to correct them. If unresolved, it may put your business at risk of audit or fine (CA DCC requires dispensaries maintain no more than 5% inventory discrepancies).
When considering point-of-sale systems, integrating with the state's track and trace system or Metrc's API is crucial. Additionally, it's important to understand how your POS system integrates and reports.
Read more: How to Choose a Cannabis Dispensary POS System
Utilizing a system that offers real-time Metrc reporting may lead to discrepancies caused by downtime in Metrc's API. Unreported sales during such downtime can result in inaccurate records, leading to lost profits and customer dissatisfaction. With Meadow's nightly inventory sync, you can rest easy knowing that every sale is reported properly, timely, and in compliance with state regulations.
With a seamless track and trace integration, businesses can mitigate these issues and maintain accurate records, ultimately enhancing operational efficiency and customer satisfaction.
Meadow’s Inventory Management System Provides:
- Reliable Metrc integration & full state compliance
- Uptime of 99.99% for retail and delivery orders, even on 4/20
- Accurate menus, everywhere customers shop
- Ability to audit your inventory and reduce theft with Cycle Counts
- Premium Inventory Velocity and real-time, easy to access data
- More Inventory Management features
Meadow's advanced inventory management software helps streamline your operations while meeting all relevant regulations, so you no longer have to worry about inaccurate data distracting from the quality customer service that sets you apart. With Meadow’s integration with Metrc, leave the manual data entry behind. If you’re spending time uploading CSV files or checking for unreported sales, you could be spending that time completing more valuable tasks at your dispensary.
Let's look at five of the most common reasons behind cannabis retail inventory inaccuracies and how they can easily be avoided with our user-friendly dispensary POS system.
Problem #1: Selling from the Wrong Batch.
One reason your inventory may be inaccurate is if you are selling from the wrong Metrc batch of products.
Solution: Product Labeling and Scanning
Labeling each individual unit is the most reliable way for retailers to make sure they are accurately selling the correct products. Monitor inventory transactions of packages in Meadow to follow the life cycle of any given product. To save time, you can use a barcode scanner to add items to an order, a cycle count, or to a transfer in Meadow to save time searching for the correct batch.
Meadow’s proprietary labeling system makes it simple for retailers to easily create unique labels to add to each product in their inventory. This helps to ensure that accurate amounts of inventory are kept track of, preventing stock issues and Metrc package mix-ups.
In addition, Meadow offers the ability for you to enable features like “scan only mode” at POS or "scan to pack" for online orders. These features help ensure that the correct package is being removed from inventory. If that retail model does not work for you, be sure to separate batches clearly on the retail floor and in the stockroom using Metrc tags and make sure your team has clear SOPs to clarify the order they should be selling products.
Read more Cannabis Inventory Management Tips for your Dispensary
In 2024, Metrc announced to California Retailers that there will be changes to this workflow with their release of Retail ID. Metrc's Retail ID will allow for one single QR code to be created at manufacturing that can be carried throughout the supply chain. Retail ID will offer support for scanning at point-of-sale and will allow a consumer to read COA and ingredient information.
Problem #2: Theft.
The cannabis industry is growing rapidly, and that unfortunately means your dispensary is a target for theft. If your store does not have a reputation for tight inventory control, your own employees could be taking advantage of loose products.
Solution: Security and Inventory Auditing
Investing in security measures such as surveillance cameras and alarms, as well as training staff members to actively monitor activity within the premises can help reduce instances of theft.
Read more about the 7 ways to protect your dispensary from break-ins.
In addition to these security measures, monitoring your inventory closely will help detect issues with theft proactively. Meadow's easy to use cycle count functionality makes sure your physical inventory is in perfect sync with POS and Metrc - helping you proactively catch fraud, loss or misuse.
Completing regular and frequent cycle counts will ensure that all of your inventory is accounted for and accurately recorded. You will be able to identify trends when you monitor your inventory closely and address discrepancies within just a few clicks.
Problem #3: Unreported Inventory Discrepancies.
Make sure to stay on top of damaged inventory. Whether it’s adjusting quantities for products like a broken jar, or completing a return for an unsatisfied customer, these small changes to your inventory should be addressed immediately.
If your current system requires too many confusing steps to properly record a return in your POS and Metrc, your staff might be avoiding the work. Once these issues pile up, it will become a tough mess to untangle.
Solution: Make Adjustments ASAP
Create systems and develop SOPs that require damaged or returned product to be reported immediately. Thoroughly document these processes for accuracy purposes. With Meadow, you can create reconciliations to your inventory in just a few seconds. The user-interface makes it very easy to understand what changes are being made. Walk through returns and exchanges at point of sale without any confusion with step-by-step required fields and entries. These adjustments in Meadow are reported to Metrc for you, so you only need to complete these actions in one place, and inventory numbers are updated in real-time, everywhere.
Learn How to Avoid an Audit & Catch Metrc Inventory Discrepancies in California
Problem #4: New Inventory Receiving Errors.
When new shipments arrive, it’s important that each product is accounted for, before it’s stored in the dispensary or storeroom. Otherwise, there could be discrepancies between what was received vs what was invoiced, leading to an inaccurate representation of available stock on hand versus what’s recorded in the system.
Solution: Count twice!
First, always be sure to count the physical inventory that’s being delivered to your store alongside the Metrc manifest and invoice. There are several opportunities for mistakes here. Products that you didn’t order could arrive, inventory quantities could be incorrect, or packages could be missing from the transfer entirely. Be sure to take your time receiving deliveries and confirm all data points are correct before signing off.
Once you’ve confirmed everything is accurate, Meadow’s ‘create purchase order from transfer’ workflow doesn’t leave packages behind and makes it easy to confirm inventory on hand.
Sometimes Metrc can be difficult to navigate. Vendors and distributors make mistakes that can leave you unsure of next steps. If you need help, you can access Meadow’s customer support team in 5 minutes or less. The support team is online, available and committed to helping you easily resolve these issues if you need extra assistance.
Read our Cannabis Dispensary SOP: Receiving Inventory
Problem #5: Lack of training.
Without proper staff training, dispensaries can be at risk for costly inventory mistakes. The cost of training new employees is expensive, and if your system is difficult to use, your resources will continue to be exhausted without the promise that mistakes won’t happen in the future.
Solution: Meadow Mastery
To ensure operational efficacy and reduce employee learning curve time, Meadow offers an easy to use training system called Meadow Mastery. This is a free, online, self-paced training resource for front and back of house teams. This helps to streamline training processes while delivering an executive level of knowledge to your new team members. They can access these courses from any device with internet. You can assign lessons to staff based upon their role at your store saving you on time and overhead costs.
Follow our Budtender Training Best Practices for your Dispensary
If you're having trouble with inventory accuracy, it might be time to switch to Meadow's intuitive cannabis retail software. We can help you manage your inventory within this easy-to-use interface. With Meadow, you won't have to worry about common inventory mistakes with our built-in safeguards for compliance and quick-to-respond support inquiries.
If you're interested in learning more, check-out what's next on the Meadow Blog:
How to Avoid an Audit & Catch Metrc Inventory Discrepancies in California
- Understand what is a limit of Metrc, and what is a limit of your current point of sale system
- The High Cost of Low Cost Solutions
- 3 Metrc Red Flags to Watch Out For
- Connect with our team to review your Metrc Health Score
Fill out the form below to book a demo and see how we can help you take control of your inventory.
