With rising costs of living and operating facing off with a race to the bottom, cannabis operators need smarter strategies to protect margins and stay competitive.
Spoilers: we got your back on this but keep reading.
How Can Cannabis Operators Control Their Sales Inventory?
A major factor in the race to the bottom is discounting product pricing. Common reasons for discounting products are upcoming expiration dates and having too much product on hand and needing to make space. A solution that we have seen success with is Available to Purchase (ATP) in cannabis software.
What is ATP in Cannabis?
ATP is a live tool in cannabis inventory management software that delivers data to operators on how much cannabis can be legally and operationally committed to a sale. Basic inventory counts will only show how much finished product is ready to sell at that moment- just what's on hand. An APT program is a comprehensive look at what you have on hand, what you have allocated to customer orders, what’s quarantined, what’s in the production cycle, and what’s pending testing. Where basic inventory reports give a surface-level snapshot, ATP provides a comprehensive, real-time picture of what’s actually sellable.
How does ATP Help Cannabis Operators?
ATP capabilities for cannabis management extend past sales availability; it can also be a compliance safeguard. The accurate numbers inclusive of products in testing or to be finished soon deliver accurate inventory across the board. This ensures alignment with the state compliance system and avoids unnecessary compliance penalties. Many ATP solutions also offer FIFO capabilities to ensure, true to form, product is sold on a first in, first out basis.
ATP also prevents accidental oversell situations that may be costly and labor inducive to
fix. Aside from oversells, there may be fees or penalties within state compliance systems
for inaccurate product numbers. The ATP tool becomes a single source of truth for
cannabis sales commitments and streamlines operations for your sales team.
When paired with a cannabis ERP system that includes sales projection reporting, ATP
gives operators the insights they need to forecast demand, control output, and maintain
profitability.
How Can Cannabis Operators Implement ATP Today?
The fastest way to bring ATP into your cannabis operation is by using a cannabis ERP system designed for compliance and inventory management. With 365 Cannabis, ATP is powered by SellStack and can be built directly into cultivation, manufacturing, distribution, and retail workflows. That means operators can see, in real time, exactly what inventory is
legally and operationally available to sell, without worrying about overselling, compliance discrepancies, or wasted product.
By combining ATP with 365 Cannabis’ sales forecasting, costing, and compliance integrations, operators can finally take control of their inventory, protect profit margins, and stay competitive, even in an oversupplied market.
Author: Andrea Carter of 365vertical.com
