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What Rule Should You Follow For Effective Stock Rotation?

Stock rotation is an essential part of food hygiene and safety because it enables you to better control the movement of products into and out of your store. This, in turn, allows you to organise your stock, reducing stock loss caused by expiration or obsolescence. In this article, HSEDocs examines the various types of stock rotation methods and outlines how to determine which rule to follow.

What rule should you follow for effective stock rotation? When it comes to effective stock rotation, there are two main rules. The first-in, first-out (FIFO) method involves selling the products that arrive first in your store. The first-expired, first-out (FEFO) approach is used to manage perishable products or those with a specific expiry date. The rule you follow will depend on the types of products you are selling.

Here are some FIFO Advantages:

Implementing a First-In, First-Out (FIFO) inventory management approach is essential for items such as perishable food products. This practice helps minimise waste by ensuring that older stock is sold or used before newer stock, thereby maintaining the highest food safety and quality standards.

FIFO is particularly beneficial in managing products with defined expiration dates. By prioritising items with shorter shelf lives, businesses can effectively prevent spoilage, thus preserving the products' integrity and market value.

Adopting the FIFO method significantly contributes to cost savings. Organisations can mitigate the financial losses associated with unsold, expired, or wasted goods by reducing the volume of perishable items discarded due to spoilage. This decline in waste translates to a healthier bottom line and increases overall profitability.

The FIFO system provides a structured and efficient framework for inventory management. It enables precise tracking of stock levels and offers clear visibility into products that require restocking. This systematic approach not only streamlines inventory auditing but also aids in demand forecasting, ensuring businesses can promptly respond to shifts in consumer behaviour and market dynamics.