A method of operating a dispensing system having a material delivery cycle. In some embodiments, the material delivery cycle includes supplying water to a receptacle, performing an operation intended to release a material into the water, and delivering the material to a downstream component. The first step of the method is to initiate the material delivery cycle. Next, a conductivity proximate to the receptacle is monitored. Additionally, one or more error conditions are identified during the material delivery cycle based at least partially on the monitored conductivity.