CannaCFO Magazine Issue 1 | Page 74

Under-funding

Every cannabis company we know struggles with funding. Delivery companies of a certain size need to carry enough product to be included as inventory on each of our vans plus enough inventoryto hold them over for sometimes 2 weeks at a time. Distributors get busy and weekly ordering is nearly impossible. The huge list of inventoriableproducts they must maintain to be competitive is also a major problem. Theyhave so many SKUs. Company ABC has made a conscience effort to remove inventorythat doesn’t move consistently and frequentlybut they still have too many SKUs. Keeping a deep inventory is a cash killer.