Streamline Your Dispensary’s Inventory with the First-In, First-Out (FIFO) Strategy

The First-In, First-Out (FIFO) inventory strategy is widely used across industries—from grocery stores to retail chains—for one simple reason: it works. In the cannabis space, this approach is not just practical; it’s critical. 

Due to the perishable nature of cannabis products and the tight regulations governing their sale, dispensaries must manage inventory with precision. FIFO ensures your oldest inventory is sold first, maintaining product integrity, meeting regulatory standards, and improving your bottom line. 

Ensure Product Quality and Freshness

Consumers expect a premium experience from cannabis products, including flavor, potency, and efficacy. Over time, cannabinoids and terpenes degrade, affecting the quality of the product. 

By following FIFO, your dispensary ensures that older inventory is prioritized for sale before its shelf life declines. This strategy helps deliver a consistent customer experience, keeps your reviews strong, and builds brand loyalty. 

Stay Compliant with Cannabis Regulations

Compliance is non-negotiable in the cannabis industry. Many state regulations require strict tracking of inventory movement, including product age and expiration dates. 

Implementing FIFO simplifies compliance by making it easier to track when products arrived and when they were sold. This not only keeps your business audit-ready but also minimizes the risk of fines or penalties due to expired or improperly managed stock. 

Minimize Product Waste and Maximize Profits

Cannabis products have a shelf life, and letting them expire on your shelves is money down the drain. FIFO keeps your inventory moving in the right order, reducing the likelihood of having to dispose of unsold product. 

Fewer expired items mean less waste and better profit margins. It also helps avoid the buildup of old stock that could tie up capital and space in your dispensary. 

Stay in the Know with Herban Creative

Running a cannabis business is complex—especially when it comes to inventory management. Implementing FIFO is just one piece of a well-oiled retail operation. Stay up to date with best cannabis practices, from industry trends to compliant marketing tactics, in our blog. 

At Herban Creative, we offer customized marketing solutions to help dispensaries stay competitive, compliant, and connected to customers by showcasing their quality management and product. Let’s elevate your cannabis business with strategies that make a real impact. Contact us today to get started.