stockrotation

Stock rotation is the practice of organizing and using inventory so that older stock is used or sold before newer stock. It is commonly applied in retail, food service, and manufacturing where shelf life, freshness, or obsolescence are concerns.

Two principal methods are FIFO, or first in, first out, and FEFO, first expire, first out. FIFO moves items stocked earlier toward the customer or production line first. FEFO prioritizes items with the earliest expiration dates regardless of when they were received. For nonperishable items, rotation may be based on purchase date or lot numbers to reduce tied-up capital.

Implementation typically includes clear date labeling, routine inventory audits, and regular restocking procedures that physically position older items toward the front of shelves or racks. In warehouses, stock rotation is integrated with picking methods and automated systems to prevent preference for newer stock over older stock.

Effective stock rotation reduces waste from spoiled or outdated products, minimizes obsolescence, and supports quality assurance and regulatory compliance. It also enhances financial performance by improving sell-through and cash flow.

Challenges include mislabeled or unreadable dates, temperature abuse, improper storage, and human error. The use of technology such as barcodes, RFID, and expiry-date tracking in inventory management systems helps mitigate these risks by providing alerts for near-expiry stock and traceability across batches.

Industries most affected are grocery retailers, restaurants, and pharmaceutical or manufacturing settings with shelf-stable or perishable components.