Inventory guide

Expiry Date Inventory Tracking for Small Business

Food shops, cosmetics brands, supplement sellers, pharmacies, and makers of perishable goods all share the same problem: stock that expires becomes a write-off. Tracking expiry dates and lot numbers turns that loss into a shrinking line item. This guide covers how to do it without a warehouse system.

1. Lots are the unit, not items

An item ("Almond milk 1L") has many lots over time. Each lot has its own expiry date and quantity. The moment you start tracking expiry, the lot becomes the real unit of inventory — not the SKU. Two cartons of the same product but different expiry dates are two lots, not one.

2. Use FEFO instead of FIFO

First-Expired, First-Out (FEFO) is the picking rule for perishable stock. Instead of "oldest receipt ships first" (FIFO), FEFO ships the lot closest to expiry first, regardless of when it arrived. A good inventory app will pick the right lot automatically when you scan an item at checkout.

3. Scan the lot, not just the product

Many manufacturers print a GS1-128 barcode that contains the lot number (AI 10) and expiry date (AI 17) in a single scan. A modern scanner reads the GS1 string, splits the AIs, and creates the lot record without manual data entry.

4. Set your "danger zone" alert window

A useful expiry tool flags lots before they expire, not after. 30 days, 14 days, 7 days — pick a window based on your sell-through rate. A weekly export of "lots expiring in 14 days" gives you time to discount, promote, or move them to a clearance shelf.

5. Recall traceability comes for free

Lot tracking has a second benefit beyond expiry: when a supplier issues a recall on lot number XYZ, you can pull a list of every customer who bought that lot in seconds, instead of guessing.