Streamlining Cannabis Dispensary Operations with Prelude’s Internal Allocations
Boost in Cash Flow in 2 Months
Freed-up cash in May and June 2024 allowed the company to refocus on expansion, enabling the opening of new dispensaries in August and September 2024.
in additional Gross Profit over the same two months.
reduction in allocation costs during the same period.
Gross Profit Growth YoY
Between March 1 and June 30, the company achieved a $675K profit increase, while keeping allocation costs nearly flat, rising by just +0.3%.
Improved allocation decisions reduced inventory costs significantly, keeping inventory lean without sacrificing product availability.
The Problem
A vertically-integrated dispensary group with numerous locations and ambitious growth plans was having challenges keeping location-specific inventory precise and headcount lean. They had solid but manual processes in place and managing purchasing, internal allocations, inventory, and cash flow became increasingly daunting. Before fully implementing Prelude’s internal allocation system, the company’s manual processes created challenges:
- Monitoring real-time inventory across all facilities.
- Determining which products and quantities should be allocated to specific locations, especially when demand exceeded available supply across dispensaries.
- Identifying the right substitute products when first-choices were unavailable.
These inefficiencies resulted in excess inventory, missed sales, higher allocation costs, and constrained cash flow, ultimately limiting the company’s ability to execute on its growth plans.
Streamlining Cannabis Dispensary Operations with Prelude’s Internal Allocations
A rapidly expanding dispensary group struggled with manual inventory processes, leading to excess stock, missed sales, and cash flow constraints.
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The Solution
In early 2024, the company began a phased rollout of Prelude's internal allocation system. This platform seamlessly connected retail and warehouse data to enhance profitability, reduce inventory levels, and improve cash flow:
Prelude’s internal allocations capability was introduced at a single dispensary, providing immediate relief.
The system was expanded to cover 75% of the dispensaries, enabling the majority of locations to benefit from dynamic allocation optimization.
Prelude was fully deployed across all locations, automating inventory and supply chain management with precision.
By dynamically managing allocations, Prelude optimized inventory levels through demand forecasting while reducing manual entry and associated errors. Its seamless integration with the company’s existing systems ensured a smooth transition with minimal operational disruption.
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