Comparison Of Expiration Date Tracking Methods

Navigating the complexities of inventory management is crucial for any business. Discover the most effective expiration date tracking methods to optimize your stock control and minimize waste.

Common Expiration Date Tracking Methods

When managing perishable goods, choosing the right expiration date tracking method is key to avoiding waste and keeping your customers happy with fresh products. Below are some of the most common methods used in the industry.

1. FIFO (First In, First Out)

How It Works:
FIFO ensures that the first products to enter your inventory are the first ones to leave. This is an easy-to-implement method that helps ensure older products are sold or used first, reducing the risk of them expiring in storage. It’s a great fit for businesses with non-perishable or slower-moving inventory, but it may not always prioritize freshness.

Example Businesses That Use FIFO:

• Grocery stores: for non-perishable items like canned goods and packaged snacks, where freshness is less of a concern.
• Wholesale suppliers: managing bulk goods like grains or frozen items with long shelf lives.

Best For: Non-perishables, slower-moving inventory.
Pros: Prevents long-term storage of older products; reduces risk of waste.
Cons: Doesn’t prioritize freshness; not ideal for perishables.

2. FEFO (First Expired, First Out)

How It Works:
FEFO prioritizes selling products with the closest expiration date first. This method is valuable for managing perishable goods. While more complex to implement than FIFO, it ensures that products are sold before their expiration date, minimizing waste and maximizing freshness.

Example Businesses That Use FEFO:

• Bakeries: where freshness is critical, and products have very short shelf lives.
• Pharmacies: where medications must be sold before they expire for safety and regulatory reasons.
• Cafés and restaurants: for perishable food items like dairy, meats, and baked goods.

Best For: Perishables, products where freshness is critical.
Pros: Minimizes waste; maintains freshness and quality.
Cons: More complex to implement; requires precise tracking.

3. LIFO (Last In, First Out)

How It Works:
LIFO is the opposite of FIFO, where the most recently added products are the first to be sold. This method is generally less common in the food industry due to the risk of older products expiring, but it can be useful for non-perishables and industries where pricing or inventory costs fluctuate.

Example Businesses That Use LIFO:

• Retailers during inflation: where the cost of goods rises quickly, and they want to sell higher-priced items before older, cheaper stock.
• Building materials suppliers: where items like lumber or hardware tools don’t expire, and newer inventory may need to be sold first due to pricing changes.

Best For: Non-perishables, industries with price fluctuations.
Pros: Can save money during inflation; simple in some industries.
Cons: Not suitable for perishables; risk of older stock expiring.

4. JIT (Just-In-Time)

How It Works:
JIT focuses on receiving goods only as needed, which reduces the amount of inventory on hand and minimizes the need for complex expiration date tracking. This method is effective for businesses with short product life cycles or limited storage space but requires strong demand forecasting and reliable suppliers.

Example Businesses That Use JIT:

• Fast-food chains: receiving food supplies only as needed to avoid excess stock and ensure everything is fresh.
• Small cafés or delis: where storage space is limited, and fresh goods are ordered frequently in small quantities.
• High-tech manufacturers: where products have short life cycles, and inventory needs to turn quickly to avoid obsolescence.

Best For: Short product life cycles, limited storage.
Pros: Reduces storage costs and waste; limits expired inventory risk.
Cons: Requires precise demand forecasting; vulnerable to supply chain disruptions.

Which Method is Right for Your Business?

The right expiration date tracking method depends on the specific needs of your business. If freshness is a top priority, FEFO will likely be the best fit. For non-perishable items, FIFO provides a simple solution to prevent long-term storage of older stock. However, more complex methods like LIFO or JIT may be useful for certain industries or situations.

How GFM Wholesale Can Help

At GFM Wholesale, we recognize the importance of managing your inventory efficiently, especially when dealing with specialty food products. That’s why we provide transparent access to product expiration dates directly in the online catalog and your GFM shopping cart, allowing you to make informed purchasing decisions based on your store’s sales pace and inventory needs. Plus, with no order minimums, you have the flexibility to order what you need, when you need it, without the pressure of meeting a set threshold. 

Learn more about GFM wholesale for stores and restaurants or get access to our wholesale specialty food catalog.