Managing expiry dates
When goods expire on the shelf, the loss is total: the product, the storage cost and sometimes the cost of disposal. What makes it frustrating is that expiry is predictable. The date is printed on the product, and with the right routines almost no stock needs to expire unsold.
Record the date at receiving
The most important step happens at the dock. When goods arrive, record the batch and the expiry date for every delivery. Check that the remaining shelf life is acceptable and refuse or flag goods that are already too close to their date.
Store by expiry, not only by arrival
Arrange stock so that goods with the nearest date are in front. Use FEFO, first expired, first out. Separate batches clearly, and avoid mixing different batches in the same box or position.
Set alerts and review lists
Produce a list of batches that will expire in the next 30, 60 and 90 days, and review it every week. This leaves time for action instead of surprise.
Act early
- Move near-expiry goods to the front for picking.
- Offer discounts or bundles while there is still shelf life.
- Redirect goods to the customers or channels that sell fastest.
- Agree with suppliers on return or exchange where possible.
Write off properly
If goods do expire, remove them from the shelf at once, record the write-off with a document and keep a note of the reason. Expired goods that stay on the shelf are a risk, and they confuse the count.
Learn from the pattern
Share the responsibility
Make one person responsible for the expiry review, and one deputy. Decide in advance who may approve a discount and who may approve a write-off. Clear authority prevents goods from sitting while people wait for decisions.
Set the right order quantities
If a product regularly expires, the order quantity is probably too high for its sales speed. Compare average monthly sales with the shelf life and order only what you can sell comfortably before the date.
Look at what expires and why. It may point to over-ordering, a slow product, poor forecasting or a picking routine that does not respect dates. Adjust order quantities and safety stock accordingly.