Part 2: Adapting to Metrc's Seed-to-Sale for Dispensaries

In this 4-part series, RMCC’s CEO, BriAnne will deconstruct the most common Metrc challenges, mistakes, and frequently asked questions by operation-type.

Each installment will provide actionable tasks and tools to implement into your cannabis business immediately.

Metrc is the leading state seed-to-sale cannabis tracking system for regulators.

The following states and regulating bodies currently utilize or will implement Metrc:

If you’ve been told by your point-of-sale solution that they can automate your Metrc and solve all of your inventory tracking woes. Think again, no one can 100% automate your Metrc compliance and if you believed them, then chances are your inventory is out of alignment and you don’t even realize it.

After thousands (maybe even hundreds of thousands) of hours of audits conducted across the country, RMCC sees time and time again that retail operators’ physical inventory is vastly out of alignment with Metrc records by 20-50%. This is a huge problem for retail operators and widespread in the cannabis retail space. When your inventory is out of control, it can feel scary; you’re exposed. You are vulnerable and, with so much at stake, it’s overwhelming to think about how to get your inventory back under control. In a busy operation, that means, without quick work, those discrepancies are compounding making inventory management feel extremely high pressure.

While you can engage with companies like RMCC to conduct audits and get you back on track, these types of audits are time-consuming and stressful for you and your staff. RMCC has seen first-hand the emotional toll a complex audit takes on an individual and their team. Diving into the root cause of discrepancies can bring up feelings of blame and self doubt for teams. While this is natural when discovering the operational shortcomings that led to the inventory errors, it certainly doesn’t make the process less painful. The good news: these enormous inventory discrepancies are preventable! Save yourself the time and stress by engaging audit experts like RMCC to clean up huge discrepancies and ensure your inventory team receives the training they need to succeed in their roles.

Let’s dig into why these discrepancies are so widespread and what you can do to prevent them:

Third-party technology solutions oversell their products: Third-party integrated point of sale systems oversell their products ability to do what they’re designed to do. The truth is the people selling you the software likely don’t know the instability and core issues that may prevent the product from accurately reporting in Metrc such as API errors and lack safeguards for conversion errors.
Operators new to cannabis may not have budgeted for an experienced compliance officer: Some may be new to a cannabis business or have recently become a compliance officers. Interpreting the regulations is tricky and requires attention to detail. A product support member of a technology solution may not have the skill set required to provide trustworthy compliance and regulatory guidance.
API Errors: Technology is never 100% reliable. Back in March 2021, third-party integrators were submitting redundant information consistently in Metrc and overwhelming the API. This caused sales to duplicate, or miss sales transactions altogether!
Inventory managers lack the education they need to succeed: If your inventory team isn’t aware of the risks and dangers of relying on their point-of-sale system, then they are doomed to fail. If they cannot find the root cause of the problem and implement preventive operational workflows, then the mistakes will repeat and compound. You’ll find great tips to help you with this Inventory Discrepancy Job Aid available to download here.

So what can you do to prevent these types of discrepancies in the first place:

Audit end of day sales transaction: Repetition and accountability are important in the never-ending battle in becoming or remaining compliant. Use this valuable RMCC SOP download to assist you when auditing end of day sales transactions.
Complete blind physical audits: Ensure you don’t slide down the slippery slope; inaccuracies can compound, making their resolution even more difficult. BriAnne discovered that, without regular blind physical audits in the operations she managed, accuracy decreased by 20% in only 3 weeks.
Check for current negative quantities in each license: Negatives are a clear indication of discrepancies. When you identify a negative quantity in that license’s Metrc records, this is a red flag. Investigate that tag’s history to determine the root cause in order to correct the discrepancy compliantly.
Seek in-depth training for you and your staff: We know you wear a lot of hats as a business owner and it’s likely that you don’t have years of experience developing and implementing training solutions, publishing them in learning management systems, administering that training, and tracking the progress and completion for your entire staff. Not to worry! RMCC’s Chief Learning Officer is just the professional who can fill this gap for your organization as well as your inventory team. We’ve already developed the course material your inventory team needs to prevent significant discrepancies in the first place.

Every audit is different. Just like how every operation is different. You need the skills and tools to take on any audit in your retail operation. Discover discrepancy reasons, including how to correct and avoid them. Build your confidence as you practice mock-audits and learn how to complete current inventory reconciliations from your Metrc to your point of sale!

This is Part 2 of a 4-part series. View the other installments here:

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