Inventory control is one of the most heavily regulated aspects of running a cannabis dispensary in Maryland. Every cannabis product—from delivery to sale—must be accounted for in real time, using a state-mandated seed-to-sale tracking system.
Failing to comply can result in fines, license suspension, or permanent revocation. In this blog, we’ll show you how to set up your dispensary’s inventory processes to meet the Maryland Cannabis Administration (MCA) requirements and avoid costly compliance pitfalls.
1. Understand Maryland’s Seed-to-Sale Tracking Mandate
Maryland requires all licensed dispensaries to track every cannabis product from the moment it enters your facility until it is sold to a customer or destroyed. This includes:
- Product origin and batch number
- Date of arrival and supplier
- Storage location and transfers
- Sale or disposal details
- Real-time inventory reconciliation
Dispensaries are required to use a state-integrated software system to submit these records, typically through a platform like Metrc or another MCA-approved solution.
2. Choose a Compatible Inventory Tracking System
Your dispensary’s point-of-sale (POS) system must integrate seamlessly with the state’s seed-to-sale platform. When selecting a system, confirm it can:
- Track cannabis at the unit and batch level
- Monitor expiration dates and product IDs
- Handle returns, waste, and disposal logging
- Reconcile physical inventory with digital records
- Auto-sync with Maryland’s regulatory software (e.g., Metrc)
It’s essential to work with vendors experienced in Maryland’s cannabis ecosystem to avoid compatibility issues during audits or inspections.
3. Train Your Team on Proper Inventory Procedures
Even the best systems can fail if your team doesn’t follow protocols. Ensure all staff are trained on:
- Proper intake and labeling procedures
- Real-time inventory adjustments
- Daily and weekly reconciliation
- Handling returns, damaged goods, or product recalls
- Compliant disposal of cannabis waste
In Maryland, all employees involved in inventory must complete state-mandated training and operate under your dispensary’s written Standard Operating Procedures (SOPs).
4. Implement Real-Time Inventory Audits
Maryland law requires dispensaries to reconcile their physical inventory with system records regularly—often daily or weekly. Your reconciliation process should include:
- Cross-checking inventory counts vs. seed-to-sale system
- Investigating and correcting any variances
- Documenting reconciliation logs for inspections
- Reporting discrepancies to the MCA, if required
Failure to conduct regular audits increases your risk of noncompliance—even if inventory is accurate.
5. Follow Strict Waste and Disposal Protocols
Cannabis waste, including expired or damaged products, must be destroyed according to Maryland guidelines. Your plan should include:
- Recording the weight and reason for disposal
- Video documentation of destruction
- Timely reporting within the seed-to-sale system
- Third-party waste management documentation, if applicable
Improper disposal practices are among the top reasons dispensaries receive violations or lose their license.
6. Maintain Recordkeeping and Backup Systems
Maryland requires dispensaries to retain inventory records for multiple years. Be sure to:
- Store all reports digitally and securely
- Maintain backup logs of system outages or manual entries
- Provide audit trails for every inventory transaction
When in doubt, over-document. Regulators will always favor businesses that prioritize transparency and traceability.
📦 Final Thoughts: Get Inventory Right from the Start
Inventory compliance isn’t just a back-office function—it’s the operational backbone of your dispensary. A single misstep in Maryland’s seed-to-sale process could trigger enforcement action, jeopardize your license, or stall future expansion plans.
That’s why GreenGrowth CPAs is here to help.
We partner with dispensary operators to build compliant inventory workflows, train teams on SOPs, and perform internal audits that align with Maryland’s regulatory framework. Our accountants and cannabis advisors speak the same language as your regulators—and we’ll help you stay a step ahead.
