A quick look at the Ontario Cannabis Store’s site shows that it carries products from over 60 brands, including various strains, extracts, vaporizers, and other cannabis-related products. This display of inventory is an important component to any kind of retail shop
If you are interested in opening a cannabis retail store in Ontario, you may be thinking about store design and layout, or the brands you are interested in carrying.With the right industry training, you canmake sure you are prepared to manage inventory.Why is this important? Achieving a good display and the right combination of products necessitates proper inventory management.
Keep reading for a few key points on inventory for cannabis retail and how industry training can help.
Inventory Basics for Cannabis Retail Training
When you begin cannabis retail training, it will not take long to learn the basics. These may seem like small details, but in order to set up an inventory system it will be necessary to assign the following for each product you intend to sell in your store:
- Quantity
- Supplier information
- Retail price and supplier price
- SKU, stock keeping unit, which identifies the product with a unique number or code
- Name of product
- Description of product
Depending on the type of system you use to keep track of inventory, you may also include an image of the product for reference. All of this information needs to be organized into a system so that you can keep track of your products, quantity, and sales.
An SKU can act like a bar code to identify products
Regular Inventory Checks
Your system will track each product as you bring it into your store and sell it. However, your inventory management strategy must also include regular checks to make sure that the information in your system matches what’s on your sales floor and in your storeroom.
If your store is in Ontario, the AGCO requires inventory counts to be done on a weekly basis, or by request. As stated on their standards document for cannabis retail stores:
- A log of the inventory results must be maintained and all discrepancies must be reported to AGCO as soon as possible.
Weekly or daily counts will ensure that you are meeting requirements, but as you will know from cannabis retailer training, keeping track of inventory is an integral part to any retail business.
Make sure your point of sale (POS) system tracks all info needed to meet AGCO requirements
Key Performance Indicators
When you have a proper system to manage your inventory, you will be able to keep your store running smoothly. Additionally, your inventory management system will help you understand supply and demand, and which products are your best sellers.
Key performance indicators refer to the points of information gathered by your inventory management system that will:
- Reveal the top-performing products
- Track store traffic
- Lost sales
- Inventory turnover
The right inventory management strategies will help keep your business open
Knowing how long certain products spend in the storeroom before they are sold and which products sell out the fastest is the type of information you need to make sure your retail operation is running efficiently and serving clients well. Inventory management is part of the foundation of any successful retail business.
Want to know more about cannabis industry courses?
Contact the Academy of Applied Pharmaceutical Sciences today!