Chapter 4 Inventory
4.1 New Product
There are two things that need to be added for every new product: * Items * Price Lists
4.1.1 Items
The first step to adding a new Item Master is going to the “Item” page. Go to App Launcher then search and select “Items.” Once you’re on the “Items” page the best practice is to clone a current and similar item then adjust the item information as appropriate. For example, if you want to add in a new 8th of flower, you should clone a current 8th of flower and not a vape cart or edible as those are not similar items.
Once you’re on an “Items” page of a similar product, select ‘Clone’ in the top right menu. Next, change the ‘Item Number’ to whatever the name of the new product is and be sure to use a similar naming system (e.g. all Good Tree flower 8ths as “GT” in front of the strain and “8th” on the end). Update the “Item Description” then copy and paste it into the “Long Description.” Leave all other fields as they are and click ‘Save’.
Please note that checking the box ‘Active’ will allow the item to be shown on our website as long as we have inventory.
4.1.2 Price Lists
Once you’ve created the “Item” for a new product, it’s time to add a price to it. Go to App Launcher then search and select “Price Lists.” Follow the next steps: 1. Copy and paste the ‘Item Number’ for the new product that was added 2. Under’ Quote Valid For’ enter “365” 3. Check the box ‘Exists in Item Master’ 4. Enter the cost of the product if you know it (optional) 5. Click ‘Save’
On the new “Price List” page in the “Prices” section, select ‘New’ then follow the next steps: 1. ‘Pricing Type’ should be “Customer Agreement” 2. ‘Unit of Measure’ should be “Each” 3. ‘Price Sub-Type’ should be “Retail-Delivery” 4. ‘Currency’ should be “USD” 5. ‘Price’ should be whatever you’ve been instructed the price to be 6. Click ‘Save’
Not only will the new “Item” be shown on our website with a description but it will also have price associated with it for purchase.
4.2 Purchase Orders and Inbound Transfers
There are a few things that need to be done to add new inventory: * Create Purchase Order (PO) * Add Purchase Order Line Items and Submit for Approval * Link the PO to the appropriate METRC transfer manifest * Receiving and Inspecting POs the Putting Inventory Away
Please note that an “Item” must exist with the ‘Active’ box checked for a specific product to be added to a PO.
4.2.1 Creating a New PO
The first step to creating a new PO is to get to the the “Purchase Order” page. Go to App Launcher then search and select “Purchase Orders.” Once you’re on the “Purchase Orders” page, select ‘New’ in the top right menu. Leave ‘Internal Purchase Order’ checked, click ‘Next’, then enter the following information: 1. ‘Supplier Site’ should be which ever vendor we’re purchasing from (e.g. Stiiizy, West Coast Cure, etc.) 2. ‘Ship to Warehouse’ should be “Montebello Distribution” 3. ‘Company’ should be “Commerce on Demand” 4. Click ‘Save’
The PO is now officially created and it’s time to add products. Yay!
4.2.2 Adding and Approving Products in a PO
On the new “PO-XXXXXX” page in the “Purchase Order Line Items” section, select ‘New’ then follow the next steps: 1. Leave ‘Item’ checked and select ‘Next’ 2. ‘Item Being Procured’ should be whatever item you want to add to the PO 3. ‘Unit Cost’ should be whatever the cost of the item is per the vendor’s menu 4. ‘Quantity’ should be whatever quantity we want to order 5. ‘Requested Delivery Date’ should be be the date we would like to receive the PO 6. Select ‘Save’ then repeat steps 1-5 for every item to be added to the PO 7. Once all the items have been added to the PO, select ‘Submit for Approval’
Once the PO as been submitted for approval, it’s time to send it to the vendor so they can create an invoice and fulfill the order. This can be done in one of two ways: 1) select ‘Print’ in the top right menu to download a digital copy of the PO and email to our sales representative at the vendor, or 2) change the ‘Delivery Options’ field to “E-Mail”, click ‘Save’, and select “Send” in the top right menu.
Please note that the second option only works if we have an email in the vendor’s “Supplier Site” profile.
4.2.3 Linking a PO to a METRC transfer manifest
Every PO that contains cannabis products that comes through our system must be linked to a METRC transfer manifest. Cannabis products include the following items: flower and pre-rolls, vapes, edibles, and extracts. Everything else is considered a non-cannabis product.
After the PO has an “Approved” status, follow the following steps: 1. Scroll down until you see a section called “Metrc” on the right side 2. Click the pencil icon next to ‘Metrc Manifest’ 3. Type in ‘MF’ and select the “MF-XXXXX” associated with this PO (this can be matched against the manifest number in METRC 4. Click ‘Save’
The METRC manifest transfer has now been linked to this PO.
4.2.4 Receipt, Inspection, and Put Away Inventory
Every completed PO must be received, inspected, and the items have to be put away into our inventory. These should always be done together during the same shift of work once the product(s) has arrived.
To add a Receipt, locate the PO on the “Purchase Order” page and select it. Next, on the “PO-XXXXXX” page, select “Receipts” then ‘New’ and then ‘Continue’. Very all the quantities being received are correct and check all of the product boxes then select ‘Save.’ Enter the associated ‘Lot Number’ (METRC package tag) with the correct item which can be confirmed either in METRC or in the “Manifests” tab in our system. Once all the lot numbers have been added, click ‘Save’.
Please note that you may have to do this twice if it doesn’t record the first time.
After completing the Receipt, the order will need to be inspected. Go to App Launcher then search and select “Action Queues.” Next, select ‘Inspection’ from the menu then find a product from the PO and select ‘Inspect’ on the right side. Under the “Acceptance Criteria” select the pencil icon next to ‘Quantity to Accept’ and enter the amount being inspected (hint: this should equal the ‘Remaining Quantity to Inspect’ amount in the “Details” section) and a date that is one year from the current date “Shelf Life Limit” then click ‘Save.’ You now this is complete once the ‘Remaining Quantity to Inspect is “0.” You’ll then go back to “Inspection” tab in ‘Action Queues’ and repeat for all provides in this order. Once all items are inspected, check the boxes for all the products in the PO and click ‘Complete.’ You’ll be asked to enter a ‘Stamp Number’ which is “123” and click ‘Confirm.’
After completing the Inspection process, the PO items will need to be put away into inventory. Go to App Launcher then search and select “Action Queues.” Next, select ‘Put Away Inventory’ then check all the boxes of the items you wish to add to inventory. In the top search box, type in ‘Default’ and click the magnifying glass then select “Montebello Distribution.” Lastly, you’ll select ‘Confirm Multiple Items’ and repeats this process for any remaining items that need to be put away into inventory.
4.4 Manufacturing and Production Orders
There are a few things that need to be done to repackage products for sale to customers: * Create Production Order allocate products to it * Repackage inventory from bulk to individual units * Assign a new lot number (METRC package tag) * Return individual units back to inventory
Manufacturing and production are key parts of the Good Tree ecosystem so we can ensure the best quality products at the lowest possible prices.
4.4.1 Create Production Order and Allocate Inventory
The first step to creating a new Production Order is to get to the “ProductionOrder” page. Go to App Launcher then search and select “Production Orders.” Once you’re on the “Production Orders” page, select ‘New’ in the top right menu. Leave ‘Open’ checked, click ‘Next’, then enter the following information: 1. ‘Item Master’ should be whatever product we want to repackage (e.g. GT Blue Dream) 2. ‘Quantity’ should be the number of items we plan to repackage (NOTE: 1 lb of flower = 448 g which should produce 128 jarred 8ths) 3. Both ‘Material Warehouse’ and ‘Completion Warehouse’ should be “Montebello Distribution” 4. Check the ‘Repackaging’ box 5. Click ‘Save’
After you’ve created the “Production Order,” the next step will be to make sure we have enough inventory to fulfill it. Select ‘Test Allocate’ and you should get a notice saying there is or is not sufficient inventory to fulfill this order. * If there is sufficient inventory, click ‘Return’ then select “Allocate” and the quantity needed to fulfill this order will now be assigned to the order and can’t be used for any other orders * If there is NOT sufficient inventory, click ‘Return’ then adjust the quantity to a lesser amount to fulfill order by selecting the pencil icon next to ‘Quantity’ and decreasing the number
Once the order has been allocated, click ’Submit for Approval’ then select ‘OK
4.4.2 Repackage Bulk Inventory into Individual Units
This step is when all bulk items are broken down into individual units (e.g. bulk flower into 8ths, 14g, etc.). Once the breakdown is complete, the product can be transferred from our distribution company (Montebello) to our retail companies (Montebello and Oakland).
Go to App Launcher then search and select “Action Queues.” Next, select ‘Production’ from the menu then find a product from the ‘Production Orders to Fill’ list and click “Print Slip.” This allows the production team to gather all the correct materials for this Production Order and make sure the counts are correct before fulfilling. All order slips should accompany the bulk product and materials and once finished, be checked off by the Inventory Specialist or manager on duty.
After the physical repackaging process is complete, go back into “Action Queues”, select ‘Production’ form the menu then find a product form ‘Production Orders in Progress’ and click “Complete.”
4.4.3 Assign New Lot Number
The finalize this Production Order, a “Lot Number” (METRC package tag) must be assigned to it along with the date of completion. The date of completion should typically be the current date which can simply be clicked next to the ‘Completion Date’ box and it will automatically fill.
The “Lot Number” may be located on the blue METRC package tags which can be found in the inventory room. NOTE: ALWAYS USE THE NEXT AVAILABLE TAG WHICH ARE IN NUMBER SEQUENCE. Once you’ve located a tag, enter the number that’s on the tag into the “Lot Number Required” box.
Lastly, confirm that the ‘Completion Warehouse’ is “Montebello Distribution” as well as the actual yield (final amount repackaged). If the final amount repackaged is different than what was expected, that’s okay, enter in the actual amount and not the expected amount. Once done, select “Complete.”
NOTE: To double check that inventory has been added appropriately, search for the ‘Item’ that was repackaged then click “Available Inventory.” Scroll down and look for the line item that contains the ‘Lot Number’ you just used and confirm the ‘Quantity Stored’ is the same as the actual yield amount that you repackaged.
4.4.4 Return Repackage Items into Inventory
After completing the repackaging process, the Production Order items will need to be put away into inventory. Go to App Launcher then search and select “Action Queues.” Next, select ‘Put Away Inventory’ then check all the boxes of the items you wish to add to inventory. In the top search box, type in ‘Default’ and click the magnifying glass then select “Montebello Distribution.” Lastly, you’ll select ‘Confirm Multiple Items’ and repeats this process for any remaining items that need to be put away into inventory.
4.5 Outbound Transfers
There are a few types of outbound transfers that need to be done for us to operate: * Moving products from our distribution company (Montebello) to our delivery companies (Montebello and Oakland) * Sending test samples to our lab vendor (Encore Labs) * Selling repackage products whole to other cannabis retail businesses (B2B)
4.5.1 Internal Transfers Between Our Companies
All of our products are purchased through our distribution company and have to be transferred to our devilry companies to sell to customers. There is one type of transfer for this process but two destinations. Follow the directions below to complete an internal transfer. Go to App Launcher then search and select “Transfer Requests.” Once you’re on the “Transfer Requests” page, select ‘New’ in the top right menu. Leave ‘Transfer Request’ checked, click ‘Next’, then enter the following information: 1. ‘Source Warehouse’ should be “Montebello Distribution” 2. ‘Destination Warehouse’ should be either “Montebello Retail” OR “Oakland Delivery” depending on which company the products are going to 3. ‘Source Location’ should be “Default” with Montebello Distribution being the sub-location 4. ‘Destination Location’ should be “Default” with Oakland Delivery being the sub-location 5. ALWAYS uncheck the box next to ‘Shipment Required’ 6. Enter “Transfer” as the ‘Reason Code’ 7. Select ‘Save’
On the new “TR-XXXXXX” page in the “Find Item” section you can start searching and adding products to transfer. Once all of the products for the internal transfer have been added, click ‘Submit for Approval’. The ‘Status’ should now say “Approved.” Select ‘Transfer’ then click “Yes.”
(To be continued)