Essential SOPs and Best Practices for Cannabis Distribution

In the cannabis industry, distribution managers are essential for navigating regulatory changes and market demands. To ensure operational excellence and compliance, it's important to incorporate Standard Operating Procedures (SOPs) and best practices into daily workflows. This guide offers an in-depth look at key SOPs and practical strategies for cannabis distribution managers, highlighting the need for distribution software specifically designed for the cannabis industry.

1. Sales Order Management and Approval

SOPs:

• Creating and Utilizing Saved Views: Start by setting up saved views tailored specifically for those in charge of approving orders. This step streamlines the process of accessing and managing sales orders.
• Review and Approval Process: Access the saved views to open sales orders directly. Use the pop-out view for a concise overview, or examine in detail as necessary. If pricing needs to be communicated to the customer before finalizing the sale, it's essential to generate a sales order quote.

Best Practices:

• Implement a comprehensive system approach using Canix to streamline every step of the sales order process within a single platform.
• The sales order quote is essential when sales haven’t been finalized, serving as a transparent pricing communication tool with the customer.

2. Order Fulfillment and Package Allocation

SOPs:

• Comprehensive Order and Package Review: Open the complete sales order to view and add packages. Use Canix's "Add Package" feature to browse available packages. Use the dropdown for each package to review crucial information, such as lab test results.
• Package Selection and Allocation: Make sure the chosen package matches the order amount. If there are discrepancies, adjust by dividing the required order amount into a new package. To maximize efficiency and accuracy in product allocation, use the auto-allocate feature. This is especially effective for products meant to be allocated on a First-In, First-Out (FIFO) basis.

Best Practices:

• Once all packages for the order have been selected, generate a pick list. This document is crucial for the team responsible for physically assembling the packages for shipment.

3. Transfer Manifest Creation

SOPs:

• Before creating the transfer manifest, ensure all packages associated with the sales order are ready for shipment. For Metrc-regulated states, the transfer will serve as a template in Metrc, necessitating formal registration to create an official Metrc manifest. In non-Metrc states, the manifest can be generated directly within Canix.

Best Practices:

• Maintaining a checklist of packages on the sales order prior to manifest creation streamlines the transfer process, ensuring compliance and efficiency.

4. Invoicing and Financial Documentation

SOPs:

• Customizing Invoices: Include comprehensive pricing information, terms and conditions, return policies, and specific payment notes that will persist across sales orders for each customer. Canix’s integration capabilities allow for seamless synchronization with accounting systems like QuickBooks or Sage, ensuring that financial documentation accurately reflects every transaction.

Best Practices:

• To ensure continuity and consistency in customer relations, remember that details set in the first sales order will carry over to future transactions with the same customer. For businesses required to include Certificates of Analysis (COAs) with their invoices, Canix facilitates the inclusion of package details directly in the invoice documentation.

5. Order Archiving and Data Management

SOPs:

• Effective Order Archiving: Once an order has been fulfilled and payment received, update its status to "Archived." This step is crucial for maintaining an organized operational database, enabling more efficient management and compliance.

Best Practices:

• Keep the active workspace clutter-free by archiving completed orders. This practice ensures that current operations can proceed smoothly without the distraction of completed transactions. It’s important to note that archived sales orders can still be referenced or reactivated if necessary.

Integrating these SOPs and best practices into cannabis distribution operations significantly enhances efficiency, compliance, and customer satisfaction. By leveraging Canix’s comprehensive features and adopting these strategies, Distribution Managers can navigate the complexities of the cannabis industry with confidence and success.

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