Why do you track inventory expiration dates? That is either because your business might be run by a regulatory agency that forces you to monitor inventory expiration dates, or it is just for inventory management when you want to sell the oldest inventory first before you sell the new ones.
Tracking inventory alone is already a long and tedious process. It takes time and can cost you a lot, especially when you have multiple locations and your items are moving a lot.
So whatever the reason is, it is already a part of inventory management and it is important to have this part properly set up in your procedures to avoid piling up problems with obsolescence and losses.
Importance of expiration date tracking in inventory management
Keeping an eye on your inventory expiry dates is one way to become more efficient in handling your inventory. This is very crucial, and a keen eye is needed to monitor expiration dates, not only with the existing items in your inventory but also for the incoming batches.
Expired items lead to substantial capital losses. The common strategy is to rotate stock on the shelves. The sooner the product expiration dates should be rotated to the front and the later the expiry date should be put to the rear.
The first-in, first-out (FIFO) stocking strategy is the foundation of most inventory control strategies.
Even though FIFO is a very straightforward procedure, why do businesses still fail to do this? It is because they don’t know which items are about to expire or already expired in the first place!
The importance of expiration dates is knowing what items and when these items would go bad. When you are aware of this, you will be prepared and make some adjustments such as putting them in front of newer items for sale or selling them at markdown prices to your customers.
Is there any Inventory Management Software that has an expiration date feature?
Absolutely! There are a lot, actually. But how expiration date indicator should appear in your inventory management system? If you are using excel, it should have a color coding that will prompt you to restock your inventory.
For inventory management systems, it should clearly show not just the items that are about to expire or already expired. It should show and allow you to see where these items are located in your inventory.
Inventory expiration date tracking goes hand and hand with inventory level tracking solutions. Both are quite useful when it comes to keeping the ideal inventory level and avoiding obsolescence. Expiration dates aren’t just for perishable goods, they can also be used as a reminder for routine maintenance or auditing. This is also where the useful life of certain equipment may be set to determine if it performed its function for the specified amount of time or to use as a reference if it has to be replaced soon.
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I completely agree, tracking inventory expiration dates is a crucial part of inventory management. It’s important to keep track of the expiry dates of both existing and incoming products to avoid any losses. Do you have any tips for making the process of expiration date tracking easier and more efficient?
I totally agree with you. Keeping track of expiration dates helps us avoid potential losses and ensures our products remain of high quality. To make the process easier and more streamlined, one great tip is to use a system that automatically keeps track of the dates and sends out reminders when a product is about to expire. This can be a spreadsheet or specialized inventory management software.
Another helpful tip is to regularly review and update your inventory so you always know what’s on hand. And, by keeping your storage spaces organized and clearly labeled, you’ll save time and effort on manual checks.