Expiry Date-Based Inventory Rotation
Expiry date-based inventory rotation is a method within inventory management that ensures items with shorter shelf lives are dispatched before those with longer ones. It’s a crucial practice in many businesses – not only to reduce waste, but also to ensure quality, comply with regulations, and deliver a better customer experience. In practice, it's all about organizing and picking goods in the right order to avoid expired or outdated products lingering in your warehouse.
Rackbeat September 5, 2025
Why is expiry-based rotation important?
If you don’t have control over which items need to go out first, you’re likely to run into issues:
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Financial waste: Expired or outdated items can’t be sold and must be discarded
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Customer dissatisfaction: Delivering goods close to their expiry dates can harm trust and satisfaction
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Compliance risks: Some industries require proper documentation and handling of expiry dates
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Lost warehouse space: Products that should have been shipped out take up valuable space
In other words, inventory rotation isn’t just a logistical detail — it’s a strategic component that impacts your entire business, your inventory management, and ultimately your bottom line.
FIFO – The classic rotation method
The most widely used method for expiry-based rotation is FIFO (First In, First Out). This principle ensures that the items received first are also dispatched first – based either on their receiving date or expiry date. This makes particular sense when working with products where freshness or validity is critical.
With a modern WMS (Warehouse Management System) like Rackbeat, you can automate the FIFO principle, so your picking routines automatically prioritize the oldest items — helping you avoid manual errors and unnecessary waste.
Industries where inventory rotation is critical
Expiry date-based inventory rotation is particularly important in industries where product usability is time-sensitive. These include:
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Food and beverage: Naturally, these items have expiry dates, and consumers expect freshness
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Retail/FMCG: Supermarkets and convenience stores carry fast-moving items with varying shelf lives
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Pharmaceuticals and healthcare: Medications, supplements, and medical devices require strict control over expiry dates and batch numbers
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Cosmetics and personal care: Many products have a limited life after opening or production
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Manufacturing: Businesses using perishable raw materials must ensure oldest stock is used first
In all these industries, a solid combination of inventory management, order management, and purchasing management is essential for maintaining quality and compliance.
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