Stock rotation labels: The best method to manage your stock?

Stock rotation labels: The best method to manage your stock?

Great logistics are the cornerstone of any business, and in particular when it comes to managing stock. Ensuring your products are in the right place at the right time prevents your customers from being let down and builds trust in your promise to always deliver. Stock rotation labels are among the most effective ways to organise your stock and guarantee that you are in total control of your inventory at all times.

Understanding Stock Rotation Labels

Stock rotation labels are an essential tool in inventory management, primarily used in retail and food industries. These labels help businesses track the age of their stock, ensuring older items are sold or used first, thereby minimising waste and stock loss.

What Are Stock Rotation Labels?

Stock rotation labels are specially designed labels that indicate the date when an item was added to the inventory. They play a critical role in the efficient management of stock, particularly perishable goods. The labels are straightforward to use and can be implemented in any inventory system, whether manual or digital.

How Stock Rotation Labels Minimise Stock Loss

One of the key benefits of stock rotation labels is their ability to reduce stock loss. By clearly marking the date of stock entry, businesses can easily identify and prioritise older stock for sale or use. This practice, known as First-In, First-Out (FIFO), is crucial in industries where products have a limited shelf life.

First In, First Out (FIFO) Approach in Stock Rotation

does exactly what it says on the tin. It means that the first stock that enters your warehouse is also the first out, e.g. it is the first to be sent out to your stores or delivered directly to customers.

This is a great option for business owners whose products may be perishable, such as food, or products that may have a cycle, like fashion. With items such as these it’s important to move them fairly quickly; the longer they sit on your shelves, the more likely they are to reach an expiration date of some kind.

Last-In, First-Out (LIFO) Approach in Stock Rotation

While the First-In, First-Out (FIFO) method is widely used, another important stock rotation strategy is the Last-In, First-Out (LIFO) method. LIFO is particularly relevant in non-perishable goods industries or in situations where the newest stock is preferred for certain reasons. Under LIFO, the most recently added items are sold or used first. This approach can be beneficial for products that do not degrade over time and where the newest stock is in higher demand.

Exploring the Types of Rotation Labels

What Are the Different Types of Rotation Labels?

There are various types of stock rotation labels, each serving different needs. Common types include:

  • Use-by/Best-before Labels: Indicate when a product should be consumed.
  • Colour-coded Labels: Assign different colours for each day of the week, simplifying the identification process.
  • Removable Labels: Ideal for containers that are reused, as they can be easily removed without leaving residue.

Best Practices in Stock Rotation

Effective stock rotation is not just about implementing FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) methods; it involves a comprehensive approach to managing your inventory. Here are some best practices to ensure optimal stock rotation:

  • Accurate Labeling: Use clear and consistent stock rotation labels. Ensure every item is marked with a date label as soon as it arrives. This practice is critical in tracking product lifecycle and expiration dates.
  • Regular Training: Ensure that all staff members are trained in stock rotation principles and practices. Regular training sessions can help maintain high standards and prevent errors in stock management.
  • Organised Storage: Arrange your inventory in a way that facilitates easy access to older stock. Clearly demarcate different sections for new arrivals and older stock to avoid confusion.
  • Routine Checks: Conduct regular audits of your inventory. This involves checking the dates on your stock rotation labels and ensuring that older stock is used or sold first.
  • Digital Inventory Management: Consider implementing digital inventory management systems. These systems can track stock levels, dates, and rotation schedules automatically, reducing the risk of human error.
  • Adaptation to Business Needs: While FIFO is generally preferred for perishable goods, and LIFO for non-perishable items, understand the specific needs of your business and adapt your stock rotation method accordingly.
  • Communication and Coordination: Maintain open communication channels between different departments (like purchasing, storage, and sales) to ensure a coordinated approach to stock rotation.
  • Waste Reduction Strategies: Implement strategies to reduce waste, such as offering discounts on products nearing their expiration dates.
  • Compliance with Regulations: Stay updated with industry-specific regulations and ensure your stock rotation practices comply with these standards, especially in food safety and pharmaceuticals.
  • Continuous Improvement: Regularly review and refine your stock rotation practices. Gather feedback from staff and consider the adoption of new technologies or methodologies to enhance efficiency.

By following these best practices, businesses can significantly improve their inventory management, reduce waste, and ensure product quality, leading to better customer satisfaction and profitability.

What Is the Correct Way to Rotate Stock?

So, boiling the above down, effective stock rotation involves several steps:

  • Labelling: Clearly label new stock with rotation labels.
  • Organising: Place new stock behind existing stock.
  • Monitoring: Regularly check dates to prioritise older stock.

What Are the Stock Date Codes and Rotation Labels?

Understanding the essentials of stock management involves comprehending two key components: stock date codes and rotation labels. Both play a pivotal role in effective inventory management.

Stock Date Codes:

Stock date codes are markings found on products, especially perishables, indicating significant dates related to the product’s shelf life. These codes typically include:

  • Production Date: The date when the product was manufactured or packaged.
  • Use-By Date: Suggests the last date for optimal quality and safety of the product.
  • Best-Before Date: Indicates when a product may start to deteriorate in quality but is still safe to consume.
  • Expiration Date: The final date after which the product should not be used.

These codes are crucial for businesses and consumers alike, as they provide essential information for safe and effective use or consumption of products.

Rotation Labels:

Rotation labels, on the other hand, are applied by the businesses themselves when they receive stock. They are a part of the internal stock management system and are used to track and manage inventory. These labels can include:

  • Date of Arrival: The date when the stock was received and added to the inventory.
  • FIFO/LIFO Indicators: Labels indicating whether the product should be sold or used first according to FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) stock rotation methods.
  • Colour-Coding: A system of colours to easily identify stock based on the day of the week or month it was received, simplifying the rotation process.

Rotation labels are essential for maintaining an organised and efficient inventory system, ensuring that products are used or sold in the correct order to minimise waste and maximise freshness.

Explore Our Label Printing Solutions

Understanding and implementing effective stock rotation labels with both FIFO and LIFO strategies is crucial for any business aiming to minimise stock loss and ensure product freshness or priority distribution. Whether your business benefits more from FIFO or LIFO methods, our label printing solutions can be customised to support your specific stock rotation strategy.

Are you ready to enhance your inventory management with high-quality stock rotation labels? Get in touch to discuss our bespoke label printing solutions today.