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How do stores keep track of expiration dates?

Published in Retail Inventory Management 5 mins read

Stores employ a combination of meticulous manual processes and advanced technological solutions to precisely track expiration dates, ensuring product freshness, minimizing waste, and safeguarding consumer health. This multi-faceted approach involves everything from diligent employee checks to sophisticated inventory management systems and cutting-edge radio-frequency identification (RFID) technology.

Keeping tabs on expiration dates is critical for retail operations, especially for grocery stores, pharmacies, and any establishment selling perishable goods. It's essential for compliance, customer satisfaction, and profitability.

Core Strategies for Expiration Date Management

Retailers utilize several key strategies to maintain strict control over product freshness:

1. Manual Inspections and Visual Cues

Despite technological advancements, human oversight remains a fundamental component of expiration date tracking.

  • Employee Checks: Store associates regularly inspect shelves, particularly for high-turnover items like dairy, produce, baked goods, and deli items. They physically check "best by," "use by," or "sell by" dates stamped on packaging.
  • Rotation Practices (FIFO): The "First-In, First-Out" (FIFO) principle is widely applied. This means that products received earlier are placed at the front of shelves or on top of stacks to be sold before newer stock. This simple yet effective method helps prevent older items from expiring in storage.
  • Color-Coding and Labeling: Some stores use internal color-coding systems or special labels applied upon delivery to quickly identify product age or upcoming expiration dates. This provides a quick visual cue for staff during stocking and rotation.

2. Barcode and Point-of-Sale (POS) Systems

Barcode scanning is the backbone of modern retail inventory and sales, indirectly assisting with expiration tracking.

  • SKU Management: Each product has a unique Stock Keeping Unit (SKU) often linked to its barcode. While barcodes don't typically store expiration dates directly, they enable efficient inventory management.
  • Purchase and Delivery Records: When products are scanned upon arrival, the inventory system records the delivery date. This data, combined with product shelf-life information, can flag items approaching their typical expiration window.
  • Sales Data Analysis: POS systems track sales velocity, helping managers understand how quickly specific products move. This information guides ordering decisions, ensuring that quantities ordered align with demand and minimize the risk of products expiring on shelves.

3. Advanced Inventory Management Software

Sophisticated software solutions are central to automating and optimizing the tracking process.

  • Centralized Databases: These systems house comprehensive product data, including manufacturing dates, expected shelf life, and vendor information. When new inventory arrives, often scanned by employees, the system registers the batch and can calculate estimated expiration windows.
  • Automated Alerts: Many systems are programmed to generate alerts for managers or staff when products are nearing their expiration dates. These alerts can trigger actions like markdowns, donations, or removal from shelves.
  • Real-time Stock Levels: By providing an accurate, up-to-the-minute view of inventory, these systems help prevent overstocking of perishable items, thereby reducing waste from expired goods.
  • Integration with Supply Chain: Modern software integrates with suppliers' systems, allowing for better forecasting and timely ordering, which in turn helps manage product freshness from delivery to sale.

4. Radio-Frequency Identification (RFID) Technology

For highly perishable goods, cutting-edge technologies like RFID offer unparalleled precision in tracking.

  • Precise Item-Level Tracking: By embedding small, passive RFID tags into product packaging or labels, stores can gain real-time visibility into the exact location and status of individual items.
  • Enhanced Quality Control: This technology is particularly helpful for evaluating perishable goods in grocery stores, as it allows for precise tracking of expiration dates and quality control without requiring direct line-of-sight scans.
  • Automated Inventory Audits: RFID readers, whether handheld or integrated into shelves, can quickly scan hundreds of items simultaneously, updating inventory and flagging items nearing their expiration dates more efficiently than manual methods.
  • Optimized Rotation: With precise data on each item's arrival and potential expiration, stores can ensure perfect FIFO rotation and proactively manage products before they become unsellable. For instance, Food Logistics often discusses how smart technology reduces food waste.

Table: Overview of Expiration Date Tracking Methods

Method Description Key Benefits
Manual Inspections & FIFO Employees physically check dates and rotate stock (older items out first). Low-tech, cost-effective, essential for all stores.
Barcode/POS Systems Scans items for sales and inventory, records delivery dates, and tracks sales velocity. Efficient checkout, basic inventory, informs reordering.
Inventory Software Centralized databases manage product data, generate alerts for expiring items, and provide real-time stock. Automates alerts, reduces waste, optimizes stock levels, improves efficiency.
RFID Technology Real-time, item-level tracking using radio waves for precise monitoring of perishable goods. Highly accurate, enhances quality control, reduces spoilage, efficient audits.
Color-Coding/Labeling Visual cues (e.g., stickers, tags) indicating product age or urgency. Quick identification for staff, supports manual rotation.

Challenges and Future Trends

While these systems are robust, challenges remain, including the initial cost of advanced technology, staff training, and ensuring data accuracy. However, continuous innovation in areas like AI-driven demand forecasting, blockchain for supply chain transparency, and smart packaging that indicates freshness levels are further enhancing stores' ability to manage expiration dates with greater precision and efficiency, ultimately benefiting both businesses and consumers.