Inventory Management in Cannabis: The Importance of Inventory Auditing
The Crucial Role of Inventory Management in Cannabis Compliance
In the highly regulated cannabis industry, meticulous inventory management is not just a best practice; it's a legal requirement. With compliance rules varying from state to state, keeping track of your cannabis inventory can be a daunting task.
For instance, in California, the Department of Cannabis Control mandates that inventory must be reconciled every 30 days. Similar regulations exist in most legal cannabis states, necessitating real-time synchronization with state traceability systems like Biotrack or Metrc. The consequences of non-compliance can be severe, varying from state to state.
Inventory Auditing: A Necessary Inventory Management Practice
To ensure compliance and minimize the risk of miscounts and misreporting, companies in the cannabis industry employ various forms of auditing. This serves as a system of checks and balances, verifying that physical inventory counts align with recorded inventory data. In traditional retail settings, older systems and manual processes hinder the ability to conduct real-time audits effectively, leading to inaccuracies that significantly increase the cost of compliance.
The Solution: Dynamic Auditing with Lucid Green
Enter Dynamic Auditing, an advanced tool for cannabis inventory management. Lucid Green's digital inventory management solutions, including LucidIDs and CaseIDs, have enhanced the way cannabis businesses perform inventory management.
Lucid Green takes dynamic auditing a step further by introducing LucidIDs and CaseIDs, our intelligent 2D QR-code technology. By affixing these QR codes to cannabis products and cases, you can fully accelerate the inventory management process. This speeds up the end-to-end inventory management process by 2-3X, allowing your business to operate more efficiently and with greater precision.
Here are some key benefits of dynamic auditing using Lucid Green's technology:
1. Real-Time Simplicity
Traditional methods that require labor intensive product sorting, visual checking of regulator package labeling, manual data entry, and careful checks to eliminate duplicate counting. Dynamic auditing, on the other hand, requires simply scanning unique QR codes one or more times, in any order, with any mix of regulator package assignment. As long as each unique code is scanned at least once, counting is handled quickly, accurately, and automatically.
2. No Operational Freezing
With dynamic auditing, you can keep selling the products as they are counted. Sales are tracked automatically and items that were scanned and counted are automatically flagged as sold when viewing audit reports. This translates to minimal downtime and uninterrupted business operations.
3. Rapid Error Detection and Correction
Dynamic auditing takes less than half the time of traditional auditing methods and is more accurate, so you can confidently perform more regular and comprehensive audits, ensuring your inventory data is maintained accurately all the time and your operations remain in compliance with state regulations.
Non-LucidID products? No problem.
Still have non-LucidID products on your retail floor? No problem. Our solution allows you to scan non-LucidIDs and count against them (either with scan-to-count or manual entry). While non-LucidIDs can’t be deduplicated, our single solution for all scannable codes means you can train your team once, and take advantage of a single solution and combined audit reporting.
Lucid Green's LucidID Platform and the LucidRetail suite of solutions can be transformative additions to your business. Our Dynamic Auditing technology enhances compliance while increasing inventory accuracy and overall operational efficiency.