Navigating the ever-changing cannabis industry can be quite a challenge, especially when adopting essential technologies. One of these is the Vendor Managed Inventory (VMI) model, which is perfect for streamlining your processes as a cannabis distributor.
Not only does it help manage your workflow, but it also offers significant benefits to your customers, improving their procurement abilities and insights into stock levels. This is technology that most of the cannabis industry hasn’t adopted yet, which leaves the door wide open for you! Improve your own efficiencies and get a huge edge over your competition.
What is Vendor Managed Inventory?
Vendor Managed Inventory is an inventory model that allows vendors (suppliers) to monitor their customers' stock levels and take action based on specific thresholds. For you, as a cannabis distributor, this means you can keep an eye on your dispensary clients' inventory in real time and arrange to send more stock before they run out.
Adopting the VMI model eliminates the lag time and potential for human error that comes with traditional methods of manually counting inventory and deciding what to order. Instead, the ordering process is based on intelligent metrics and automated processes.
Imagine if you were a distributor of cannabis-infused gummies. With VMI, you'd know when a dispensary was running low on a specific flavor and automatically send a new shipment before they ran out. There are no more frantic phone calls or last-minute orders – just smooth, efficient inventory management.
The VMI model helps cannabis distributors
Using this model, you can experience a range of efficiency improvements and benefits for your cannabis distribution business.
Form better relationships with your client
VMI allows you to become integral to your client's supply chain and planning process. Your dispensary clients can trust you to manage their inventory, sending the right stock at the right time. This can be a huge selling point when working with new clients and help you stand out from the competition.
Increase sales by eliminating stock-outs
Your customers can't sell products they don't have. By automatically monitoring their inventory levels, you can ensure their stock gets replenished before they sell out, often resulting in a 5% to 25% increase in your total sales. It's like having a sixth sense for when a product is about to sell out, helping you stay one step ahead and keeping your clients well-stocked.
Potential increase in sales
One of the most significant benefits of implementing a VMI system is the potential for increased sales. With a proactive approach to inventory management and ensuring that your clients always have the right stock, you can boost your sales by 5% - 25%. This increase is a result of improved stock availability and better planning on your part, keeping your clients well-stocked with the products their customers want
Improved management of your own stock levels and production
Working with the VMI model enables you to make informed predictions about future stock requirements. When you can track your clients' inventory levels, velocity, and top sellers, it becomes much easier to plan ahead and reduce the costs associated with the aging stock sitting in a warehouse.
You'll be able to keep your inventory fresh and avoid wasting valuable resources on products that aren't selling.
Cut down on paperwork and admin time
The automation that comes with VMI reduces the potential for human error, leading to more efficient ordering and fewer order corrections. This ultimately means less paperwork and admin time, allowing you to focus on other aspects of your business.
You'll spend less time buried in spreadsheets and more time building relationships with your clients and growing your business.
VMI helps your clients, too
Adopting a VMI model is not just beneficial for you as a distributor; it also brings significant advantages to your clients, making their businesses more efficient.
Inventory management is shifted to their supplier (you)
By using a VMI system, your clients can shift the inventory management responsibility over to you, allowing them to focus on their core business activities. They no longer need to manually review stock levels or decide what to order when stock runs low – it's all handled for them based on intelligent metrics rather than gut feel. This frees up valuable time and resources for them to focus on growing their business and providing excellent customer service.
Better customer satisfaction by keeping products in stock
Customers get frustrated when they find their favorite product is out of stock, especially if it happens frequently. By monitoring inventory velocity using VMI, you can virtually eliminate this problem by shipping the right volume of each SKU, keeping your clients' customers satisfied.
Happy customers are more likely to return and spread the word about your clients' businesses, driving more sales for both you and your clients.
Cut down on aging stock
Keeping track of inventory velocity also helps your clients avoid overstocking low-demand products. This results in more efficient use of inventory space and cost-effective management of their stock. This helps your clients reduce wastage and unnecessary expenses, ultimately increasing their bottom line.
Stop those urgent ad-hoc orders
A common issue with manual ordering processes is the need for urgent, last-minute orders. Realizing that a popular product has just sold out and paying extra shipping costs to get it delivered as soon as possible can be expensive and stressful.
With VMI, this mistake is minimized, reducing shipping costs and lost revenue from missed sales. Your clients will appreciate the smooth and consistent supply of products, ensuring they never have to deal with the stress of last-minute orders again.
Leverage that Vendor Managed Inventory model with Distru Connect
Distru Connect allows your business to implement the VMI model and start reaping the benefits for you and your clients. This system is often underutilized in the cannabis industry, so adopting it can give you an edge over your competition. Your clients will appreciate the added value you bring to their businesses.
With Distru Connect, you can monitor your clients' stock levels and real-time inventory velocity. Receive alerts when their stock levels reach their minimum threshold, so you can create a fresh order to keep them topped up and maintain a seamless supply chain.
Adopting the Vendor Managed Inventory model in the cannabis industry can benefit both you as a distributor and your clients. It streamlines inventory management, eliminates the need for manual stocktakes and ordering, and improves customer satisfaction by ensuring products are always in stock.
True, Live Inventory from Retailers
Distru Connect streamlines retail inventory management by allowing vendors to see live inventory levels in retailers and take action on reorders.
Save Time and Focus on New Sales
Eliminate the need for constant back-and-forth asking for inventory levels from retailers. Free up your sales reps' time to focus on new deals and upsells.
Track Inventory Velocity
See how fast a SKU is selling across individual or all retail partners to help get ahead of stock outs and improve production planning.
Leverage Data to Identify Top Sellers
Analyze sell-through velocity across your products and identify your fastest selling SKUs.
By leveraging the power of Distru Connect, you can stay ahead of your competition and grow your business in this rapidly evolving industry. Don't miss out on the opportunity to enhance your operations and strengthen your client relationships with VMI – it's a cannabis distributor must-have!
