In this guide 6 sections
Expired stock ships when the warehouse records quantity but not lot and expiry date, so pickers take whichever carton is closest. Capture dates at receiving, keep one lot per bin, allocate the earliest expiry first, and raise alerts well before the date arrives. None of it needs exotic tools.
The date is lost at the receiving dock
A pallet arrives with four lots of the same serum. The goods-in clerk counts cartons, books the quantity against the SKU, signs the delivery note and moves on to the next truck waiting at the dock door. Nobody keys in the lot numbers or the dates printed on the carton ends, because the receiving screen has no field for them.
From then on the shelf and the database disagree. The system knows how many units exist. It cannot say which ones expire first.
Barcodes help when suppliers print them. A GS1 DataMatrix or GS1-128 label can carry the lot number and the expiry date in one scan, so the clerk captures both without typing a character.
How the wrong carton gets picked
Pick lists sort by bin location, not by date. The picker walks the aisle, finds the first carton of the SKU and takes it, which depends on nothing but where the carton happens to sit. On paper that is first in, first out. In practice it is often last in, first out, because new stock lands at the front of the shelf where it is easy to reach.
Mixed bins make it worse. When two lots share one location, nobody can tell which is older without opening both cartons and reading the print on each, and nobody has time for that.
Kits hide the date inside the box. A set holding a cleanser, a toner and a night cream expires with its shortest-lived part.
- New stock put in front of old stock
- Two lots sharing one bin
- Returns put back on the shelf unchecked
- Sets built from components with different dates
- Pick lists that show a location but no lot
Rules that keep short-dated stock away from customers
First expiry, first out, written FEFO, means the system allocates the lot with the earliest date to the next order, whatever the order in which the lots arrived. The pick list names the lot and the bin. The picker scans the carton to confirm.
Give each lot its own bin. Set a minimum remaining life for each sales channel, because a retailer contract may demand more months than a staff sale needs and the system checks before allocating.
Blocking is the last line of defence. A lot past its date sits in a quarantine status that the picking screen refuses to allocate, whatever the stock count says.
- Earliest expiry allocated first, with the lot on the pick list
- One lot per bin location
- A minimum remaining life for each channel
- A quarantine status that blocks allocation
Alerts, and what to do with stock that is nearly out of date
An alert works only when somebody owns it. Send a weekly list of lots reaching their warning date to the inventory manager, with quantity, bin and weeks left. Add an earlier warning for slow movers.
Decide the options in advance. Bundle with a fast seller, move to an outlet or staff channel, return to the supplier where the contract allows, or destroy with a record. A short-dated lot becomes a bargain only when somebody prices it before the date arrives, and not on the morning after the stock has gone out of date.
Write off with paperwork. A destruction note that lists lot, quantity, date and approver keeps the stock figures honest and answers the questions an auditor or a retailer will eventually ask.
Returns, and a floor check that takes an hour
Customer returns carry no date unless someone looks. Make it a rule that every returned cosmetic is scanned for lot and judged against the minimum remaining life. Opened or used products go to disposal. Never back to the shelf.
This week, pick three fast sellers. Walk to each bin, read the lot and expiry on the cartons, and compare them with what the system says. Any mismatch shows where the process leaks.
Write down what you found, who must fix it and by when, and bring the sheet to the next stock meeting so the gap does not close quietly. The three products may well point to the same cause.
Expiry watch sheet
Print it weekly, one line for every lot on hand. The columns are SKU, lot, expiry date, period after opening symbol, bin, quantity on hand, weeks to expiry, action and decision date. The action column offers sell, bundle, outlet, return to supplier, quarantine or destroy, and a signature line at the foot records who approved each decision.
Open a blank worksheet to printQuestions owners ask
What is the difference between an expiry date and the PAO symbol?
The expiry date is printed on the pack or carton and applies to an unopened product stored as directed. The period after opening symbol, an open jar with a number of months, shows how long it stays fit for use once opened.
Is FEFO different from FIFO?
FIFO sends the oldest delivery first. FEFO sends the earliest expiry first. Two deliveries can arrive in one order and expire in the other, so FEFO is the safer rule for dated goods.
Can we sell stock that is close to its date?
Rules vary by market, so confirm the position with your regulatory adviser and read each retail contract for its minimum remaining life before you agree a discount sale. Selling past the printed date is never an option.
Can a spreadsheet do this?
For a small range, yes. Columns for lot, expiry and bin, sorted weekly, will do. It breaks down when several people pick from several bins, because nobody updates the sheet at the moment of picking.