Counting batch-tracked and expiry-dated goods

A carton of cooking oil, a drum of paint or a sack of raw material can match the books in quantity and still be a problem. If one batch expires next month, or expired last month, accurate quantities mean little. For goods with batches and shelf lives, a count has to answer three questions together: how many, which batch and how long will it last. If any of the three is missing, you will be dealing with the consequences from a weak position.

Why batches and expiry dates complicate a count

• One item may have several batches with different expiry dates, so a total alone hides the risk.
• The system may not track batches, and often holds only a total, while the batch details exist only on the outer carton labels.
• First-in-first-out is easily upset on the floor, with new batches placed in front and old ones pushed to the back.
• Near-expiry and expired goods often sit among normal stock until a customer or inspector notices them.
• Chemicals, paint and food additives also have storage conditions and safety requirements besides shelf life.

Designing the count sheet

Add columns to an ordinary count sheet: item code, batch number, production or expiry date, quantity, location and status (normal, near expiry, expired, damaged, under inspection). Copy batch numbers and dates exactly as printed on the label. Do not write them from memory, and do not write "about".

A few details:

• Batches in the same location each get their own line, and are never merged.
• Goods with an unreadable or missing label are flagged separately. Do not guess the date.
• In cold stores, shorten the time the door is open. Prepare the sheets beforehand and only count and copy dates once inside.
• Chemicals and flammable goods are entered under the storage requirements and safety rules, and rules are not to be broken for the sake of a count.

First-expired-first-out and the near-expiry line

First-in-first-out is not enough for short-life goods. Switch to first-expired-first-out, where the expiry date, not the receipt date, decides the order of issue. A count is a good moment to check this: for each item, are the batches that expire earliest placed at the front?

You should also fix the near-expiry line in advance, meaning how little remaining shelf life counts as near expiry. A common approach uses a share of the total shelf life, for example less than a third remaining, or a fixed number of days, for example under 90. The right value depends on the product, customer requirements and local rules, so agree it with your quality lead and finance.

List near-expiry and expired goods separately

After counting, sort the goods into four groups and list them separately:

1. Normal: plenty of shelf life left, sold or used normally.
2. Near expiry: not yet expired, but to be sold first, promoted or transferred.
3. Expired: stored apart, clearly marked and not to be issued again.
4. To be investigated: label missing or batch unknown, origin to be traced.

Expired goods, whether scrapped, destroyed or returned to the supplier, need management approval and must follow local rules on food and chemicals, so ask a specialist or the competent authority. The counting side records quantity, batch, value and photographs.

An invented example

In a cooking-oil importer's warehouse, one 5-litre product shows 1,230 cartons in the books. The count finds three batches: batch A with 300 cartons and 40 days to expiry, batch B with 800 cartons and 200 days left, and batch C with 120 cartons that expired 10 days ago. The three batches total 300 + 800 + 120 = 1,220 cartons, 10 fewer than the books, and the gap is traced separately.

Assume a cost of 100,000 UZS per carton. Near-expiry batch A is worth 300 × 100,000 = 30 million UZS and needs prompt promotion or transfer. Expired batch C is worth 120 × 100,000 = 12 million UZS, is stored apart and awaits a management decision. (The figures are invented.) Looking only at the total of 1,220 cartons, neither risk would show.

In short

With goods like these, quantity is only the first step, and batch and date are where the risk lies. UzWarehouse's year-end and quarterly counts cover all stock, compare it line by line with the books and list surplus and shortage quantities and values. If batches and expiry dates are to be recorded, the columns on the count sheet can be agreed with us beforehand.