240 Logistics: Weekly - September 24 2024
? Overstocked ?? Out of Stock ?? Missed Profits
Retailers across the nation are gearing up for Croptober! ??
It's crucial to your store's success to address expired inventory, aging inventory, and best practices for sourcing product for the immediate future ??
Let's get your vault cleared out for Croptober with 240 Logistics! ??
Over the last few weeks we have seen changes to our consumer insights - here is what we found:
Inventory is the greatest expense to retailers – Not enough inventory and you risk missing out on key sales. Too much inventory and you’re sitting on inventory that takes up shelf-space and eats up necessary open-to-buy dollars.
Today we’re going to be focusing on the hidden costs of inventory overstocking, while exploring realistic pitfalls and addressing actionable solutions. Let’s jump in!
The Discount Trap: How Overstock Leads to Markdowns?
To move slow-moving inventory, cannabis retailers frequently rely on discounts and promotions, which can result in razor-thin or even negative margins. This creates a cycle where retailers discount underperforming products to clear them, but in doing so, they train consumers to expect lower prices. Price-sensitive customers begin purchasing only discounted items, leaving additional inventory to stagnate, which then requires further discounting. Over time, this cycle not only erodes profit margins but can also send a damaging signal to customers – that certain products aren’t worth their full price – ultimately devaluing the entire inventory.
To avoid constant discounting, leverage dispensary inventory optimization tools that provide real-time insights into stock levels and sales patterns. FlyWheel’s cannabis inventory control solutions help you balance inventory levels and avoid the need for heavy markdowns.
Missed Growth Opportunities
Caught in a cycle of discounting products due to looming expiration dates, many retailers miss the opportunity to promote the top-selling items that generate the highest profit margins. This reactionary approach often stems from ineffective inventory management, where stock levels aren’t aligned with customer demand.?
Additionally, without a strategic approach, retailers risk missing out on significant growth opportunities. For instance, if a store consistently over-purchases slow-moving items while understocking popular products, valuable shelf space and cash flow are tied up in inventory that doesn’t drive revenue. As a result, retailers may miss opportunities to introduce new, in-demand product or capitalize on emerging trends.
To break this cycle, it’s essential to implement a proactive inventory management strategy that optimizes profit margins and ensures customers consistently find the products they love, fostering loyalty and long-term business growth.
Interested in learning more? Read the full blog here.
领英推荐
A cannabis inventory audit is designed to verify the accuracy of your inventory records, ensure compliance with state laws, and identify any areas for improvement in your inventory processes. Regular audits are vital for maintaining the integrity of your stock and preventing issues such as mislabeling, shrinkage, or damage.
Key Objectives of a Cannabis Inventory Audit:
Step 1: Establish Objectives for the Audit
Before starting your cannabis inventory audit, clearly define the objectives of the audit. These objectives will guide the entire process and help you measure the effectiveness of your inventory management.
Common Objectives Include:
By setting clear objectives, you can identify gaps in your current inventory processes and make improvements to ensure more effective management.
Step 2: Plan the Audit
Once your objectives are set, the next step is to plan the scope of your audit. Decide which locations and products will be audited, as well as the time frame for conducting the audit.
Interested in learning more? Read the full blog here.
Ready to get started? Reach out to us today!
Schedule your FlyWheel Demo: 45min w/ Brian H. - VP of Sales