As a business owner, efficient inventory management is one of your key goals. Just imagine missing out on revenue due to stockouts or incurring losses because of expired products. Products with expiration dates require special attention. Here’s a guide on what you should keep in mind.
Which Inventory Management Method Accounts for Expiration Dates?
If you work with products that have an expiration date, you’re likely using the JIT or FIFO method.
- Just in Time (JIT): This method is used when there’s an optimal alignment between supplier and customer. This means that goods are immediately shipped to the customer upon delivery. This minimizes stock levels and reduces inventory costs.
- First In, First Out (FIFO): In the FIFO system, the first products that come in are the first ones to go out. This is the most commonly used inventory management system for products with an expiration date. In this specific case, we also refer to FEFO or First Expired, First Out.
Lot Number or Batch Code
Most food products are produced in batches or lots, as factory machines can’t produce an unlimited amount of products at once. By printing a lot number or batch code on the packaging, the company can precisely identify which production batch the product came from. If there’s an issue with one of your products, you can easily trace the affected batch using the lot number.
Which Codes Should I Look Out For?
It’s well-known that many food products have a limited shelf life. These products aren’t indefinitely available or storable. In addition to the lot number, you might find other abbreviations on the packaging of products with expiration dates.
- TGT Date: TGT stands for “Te Gebruiken Tot” (Use By Date). This date is typically found on highly perishable products like meat or fish. Health issues can occur if you consume products past the TGT date, so make sure these products leave your webshop, store, or warehouse well before the deadline.
- THT Date: THT stands for “Tenminste Houdbaar Tot” (Best Before Date). Many people throw away products that have passed the THT date, but that’s not necessary! The THT date indicates the date up until which the manufacturer guarantees good quality. After this date, the product may look or taste different but can still be consumed without health risks.
Note: The date on the packaging applies as long as the packaging remains unopened. Once the packaging is opened, the shelf life decreases rapidly. Some suppliers address this by indicating how long the product can be stored after opening.
Webship Online Works with Expiration Dates!
Webship Online’s cloud application allows you to input lot numbers and expiration dates. The application will then prioritize the oldest products first, based on the entered data. Store different batches at different locations! This is particularly useful because Webship Online will direct you to the batch with the correct expiration date during picking, saving you time.
Need Help?
Do you have a webshop, but inventory management isn’t your thing? Webship can help! We handle inventory management, picking, packing, and shipping. This way, you can focus entirely on growing your webshop without worrying about expiration dates, warehouse locations, shipping labels, etc. Contact Webship at hallo@webship.be to schedule a non-binding consultation.
Tip: Use our price calculator to get an initial view of your all-in fulfillment price.
