240 Logistics: Weekly - October 15 2024

? Expired inventory is the hardest heartache for Budtenders, Store Owners, and Inventory Managers,

There is nothing worse than shelling out precious 'open-to-buy' dollars for a nifty new product just to watch it sit on the shelf and lose your store money ??

Then we tediously count the days until it finally expires and we can at least dispose of the product safely and get the shelf space back. We're not even counting missed revenue at this point anymore. We just want the shelves back!

This week we dive into:

? Tackling aging inventory

? What to do before it expires

? How to get ahead and stay ahead

Giving you:

? Decision-making time back

? Best practices

? Data-driven insights

Don't forget to make your voice heard!

Take our Cannabis Consumer Survey

All the answers will help us see how you are actually using and shopping for Cannabis ??

Allowing us to better serve the stores and brands you love to shop from!

Help us help you! Take the survey today!! 100% Anonymous ??

Cannabis Consumer Survey

Over the last few weeks we have seen changes to our consumer insights - here is what we found:

• ?? Basket size: No Change
• ?? Average basket price: Decrease by $0.82 - We have seen as close a counter in price change that we could probably get. Last week we saw an increase of $0.78. That has now been rectified with a balancing decrease of $0.82. What do you think is causing the fluctuations? ??
• ?? Flower prices: Increase by $0.07 - Flower prices seem to be maintained at a consistent level despite the influx of Croptober crops. This week in general seems to be about balance, as we have price point counters for all of the changes we saw last week! ??
• ? Top 3 performing categories: No Change

Inventory turnover is a key retail metric that measures how often inventory is sold and replaced within a certain period. For cannabis retailers, this metric is especially important because cannabis products have a finite shelf life. Further, stock that sits too long, risks becoming unsellable, tying up valuable capital that could be used elsewhere in your business.?

High turnover rates indicate efficient operations, while low turnover often signals aging inventory issues and potential financial strain.?

Why Inventory Turnover Matters in Cannabis Retail?

As a result of constantly fluctuating regulations and consumer preferences, maintaining an optimal inventory turnover rate is vital. Here’s why:?

• Frees Up Capital: Cannabis inventory that moves quickly frees up capital that can be reinvested in higher-demand products, new product lines, or essential business operations.?
• Prevents Aging Inventory: Cannabis products that age in inventory may become unsellable, leading to loss of revenue and wasted resources. A steady inventory turnover ensures you’re consistently rotating stock and keeping offerings fresh.?
• Maximizes Profitability: A well-optimized inventory means you can reduce the risk of markdowns or wasted stock. More frequent product movement also helps dispensaries capitalize on popular items, improving margins and overall profitability.?
• Supports Cash Flow: Keeping cash flowing is critical in cannabis retail, where margins can be tight. A faster turnover means quicker replenishment of stock, ensuring a steady stream of revenue.

How to Improve Cannabis Inventory Turnover

1. Optimize Your Inventory with Data-Driven Insights?

One of the best ways to improve inventory turnover is by utilizing cannabis inventory forecasting software. Tools like FlyWheel offer real-time insights into sales patterns, helping retailers predict demand accurately and avoid overstocking. By leveraging a cannabis sales performance dashboard, you can analyze which products are moving quickly and which are gathering dust, allowing for more strategic purchasing decisions.

2. Set Up Inventory Audits and Regular Stock Reviews

A key part of effective inventory management for dispensaries is regular audits and stock reviews. Regularly auditing your stock levels not only helps catch discrepancies but also allows you to identify aging inventory. By scheduling routine inventory reviews,

. . .

Interested in learning more? Read the full blog here.

A 30-59 days stock model provides several benefits for cannabis retailers looking to optimize their inventory management. Carrying enough stock for 30 days allows dispensaries to meet demand without risking product expiration or understocking. It also offers the added advantage of consolidating vendor deliveries, simplifying intake and logistics.?

Key Benefits

• Reduce Aging Inventory: Stock is kept within a 30-day window, ensuring that products are rotated regularly and sold before losing quality or potency.?
• Streamline Vendor Management: you only need to manage one delivery per vendor per month, reducing time spent coordinating with suppliers.
• Improve Cash Flow: A monthly ordering cycle ensures your capital isn’t ties up in excessive stock, allowing you to maintain flexibility in other areas of your business.?
• Boost Operational Efficiency: By simplifying the logistics of frequent reordering, your staff can focus more on sales and customer service.?

Best Practices for Managing Cannabis Inventory Over 30 Days?

1. Leverage Cannabis Inventory Forecasting Software?

Accurate demand forecasting is essential when managing a 30-day inventory. Using tools like FlyWheel’s cannabis inventory forecasting software enables dispensaries to predict stock requirements based on sales trends, ensuring optimal inventory levels throughout the month.?

Key Forecasting Tools:?

• Sales Trend Analysis: Uses historical sales to project monthly demand, preventing understocking or overstocking.?
• Automated Stock Alerts: Receive alerts when stock reaches reorder points, ensuring timely vendor orders to maintain a 30-day supply.?
• Product Performance Tracking: Monitor which products are selling well and adjust your inventory orders to ensure you’re meeting demand without overloading on slower-moving products.?

2. Utilize Cannabis Sales Performance Dashboards?

A cannabis sales performance dashboard helps dispensaries analyze product performance and identify trends in real time. With FlyWheel’s analytics, you can track how products are selling and adjust orders accordingly to maintain stock for 30 days.?

Actionable tip: Use FlyWheel’s reporting tools to analyze key metrics like sell-through rates, daily product sales, and remaining stock days. These insights help you fine-tune your monthly vendor orders and avoid overstocking or running low on high-demand products.?

3. Consolidate Vendor Deliveries for Monthly Restocking

One of the key advantages of a 30-day stock model is the ability to consolidate vendor deliveries, which minimizes the logistical burden of multiple orders each month. By planning your inventory in 30-day cycles, you can order in bulk from each vendor and manage only one delivery per month

Strategies for Managing Vendor Deliveries

• Negotiate With Vendors: Work with your suppliers to schedule consistent monthly deliveries that align with your sales data and stock projections.

. . .

Interested in learning more? Read the full blog here.

• Cannabis Consumer Survey
• Comprehensive Guide to Cannabis Inventory Management
• Inventory Aging: How Long Your Cannabis Products Should Stay On the Shelf Before Discounts

Ever made an impact in the Cannabis industry? ??

Do you want to?

Help us influence the future of Cannabis Markets and Retail! ??

Take 240L's Cannabis Consumer Survey

Put the power of supply and demand back into your hands, the customer! ??

100% Anonymous ??

Take our survey here ??: Cannabis Consumer Survey

Ready to get started? Reach out to us today!

Schedule your FlyWheel Demo: 45min w/ Brian H. - VP of Sales