What is Expiry Management?
Expiry management is the practice of sending out goods for sale before their expiry dates cross. This prevents the product from getting perished. Managing the expiry of a product simplifies warehousing operations.
Significance of Expiry Management in E-commerce Logistics
Expiry management ensures product quality delivered to the customers is top-notch and that products are not obsolete. Some other benefits of expiry management are:
- Expiry management makes it easy for businesses to keep track of which stocks are closest to their expiry dates. Hence, these stocks are sold first.
- With expiry management software, brands can prevent the loss of products. The efficient stock rotation by the software monitors the products closely along with their expiration dates.
Prerequisites to Determine Expiry Management
When it comes to expiry management, a company requires collated information. In this document you have to provide the products’ details like identification number, product, expiry date, days to expire, and contact. Subsequently, you have to keep a check on the expiration dates manually.
Another effective method of expiry management is the FEFO method. The First Expiry First Out method focuses on the expiry date of a product. In this technique, the product whose expiry date is approaching is pushed forward for sale. As a result, this prevents the wastage of products.
Use Case with Expiry Management
Consider a company that uses expiry management software to keep track of all its products’ expiration dates. They have three products – A, B and C with expiry dates 1 Jan, 2 Jan and 3 Jan respectively. Consequently, they employ the FEFO method and the products with the closest expiry date are sold first i.e, product A is sold first.
In this way, the company ensures that none of its products expire in its warehouse.