How to Manage Expiration Dates and Minimize Food Write-offs Using a WMS

If the warehouse does not use this information directly during receiving, put-away and picking, it may hold sufficient stock and still have to write off goods that have remained in storage for too long. A WMS makes it possible to treat shelf life as an active inventory management parameter, not merely as a record in the system.

Storage and logistics for fresh food work with time differently from warehouses handling non-food goods. Every day that stock spends in the warehouse can reduce its commercial usability.

For some products, this means months. For fresh fruit, vegetables, dairy products, meat or chilled products, a few days or even hours may be decisive. This creates a fundamental difference between two questions: How much stock is in the warehouse? and How much of that stock can still actually be sold and shipped to specific customers? The second question is more important when managing a food warehouse.

Expiration is not just a date on a label

When managing food products, it is necessary to distinguish at least between two types of dates.

Label	Meaning
Use-by date	Related to food safety
Best-before date	Primarily related to maintaining quality

 

European legislation for packaged foods distinguishes between the labels “use by” and “best before”, i.e. between the use-by date and the date of minimum durability. The European Commission also points out that correctly working with date marking is important in preventing food waste. From the warehouse perspective, however, the date alone is not enough. It is also necessary to know:

• which batch it belongs to,
• where that batch is located,
• how many units remain,
• which orders can use it,
• what minimum remaining shelf life the customer requires,
• and whether there is older stock that needs to be shipped first.

This is no longer simple record-keeping. It is inventory management based on time.

Why a warehouse may write off food even when stock levels are correct

The problem does not necessarily arise because the company purchased too much. A write-off can also occur in a warehouse that appears to have correctly set stock levels. A typical scenario looks like this:

1. two batches of the same product are in the warehouse,
2. the newer batch is stored in a more easily accessible location,
3. the warehouse worker uses the newer stock during picking,
4. the older batch remains in the warehouse,
5. the situation repeats with subsequent orders,
6. the older stock is left with too little remaining shelf life for further shipment.

From an accounting perspective, the stock may be correct the entire time. Operationally, however, a write-off occurs. That is why, with food, it is not enough to monitor quantity alone. Visibility is needed at the level of batch, location and remaining shelf life.

FEFO: pick the nearest expiration, not the oldest receipt

For stock with a limited shelf life, one of the basic principles is FEFO – First Expired, First Out. Goods with the nearest relevant expiration or shelf-life date should be dispatched before stock with a longer remaining life. This differs from FIFO (First In, First Out).

Method	Decisive parameter	Typical use
FIFO	Receipt time	Stable assortment without a significant difference in expiration
FEFO	Expiration/shelf-life date	Food, pharmaceuticals and time-sensitive goods

 

Two pallets of the same yogurt do not necessarily have the same shelf life based on which one arrived in the warehouse first. A newer delivery may contain a batch with a shorter use-by period. Therefore, time-sensitive stock should not be selected solely by the receipt date. A WMS can compare specific batches and, when creating a task, determine which stock should be picked.

FEFO only works if the warehouse has the right data

The rule “the nearest expiration goes first” sounds simple. In practice, however, it requires the data to be captured already at receiving. For each relevant unit or batch, it may be necessary to record:

• batch number,
• production date,
• use-by date,
• minimum durability,
• quantity,
• supplier,
• storage zone,
• and, where applicable, other quality parameters.

If these data are entered manually or exist only on paper documents, FEFO remains dependent on employee attention. This model may work with dozens of batches. With thousands of items and high daily turnover, however, there is already room for errors. A WMS therefore transfers the selection of the correct batch from the warehouse worker’s experience into a system rule.

Expiration management starts at receiving

Minimizing write-offs does not start at dispatch. It starts at the warehouse gate. At receiving, a key question may arise: Does the delivered batch have enough remaining shelf life for the company to be able to sell it?

If a supplier delivers a product with an unreasonably short remaining life, the warehouse may physically accept the goods, but the problem is merely shifted into the future. At receiving, the WMS can apply rules such as:

• minimum number of days until the use-by date,
• minimum remaining shelf life as a percentage,
• different limits by product,
• different limits by supplier,
• verification of mandatory batch data.

If the condition is not met, the system can:

• mark the stock for inspection,
• block it,
• redirect it to a quarantine zone,
• or trigger a decision by the responsible employee.

This captures the risk before the problematic stock is mixed with regular inventory.

Not every customer accepts the same remaining shelf life

This is where food inventory management becomes more complex. A product may still be fully compliant from the perspective of the statutory date, but it may no longer be commercially usable for a specific customer. A retail chain may, for example, require a certain minimum shelf life remaining at delivery. Another customer may accept a shorter interval. A food-service operation may have different rules.

As a result, the same batch may be:

Situation	Stock status
Customer A order	Suitable for shipment
Customer B order	Remaining shelf life too short
Internal sales channel	Still usable
Later shipment	At risk

 

Simple FEFO may therefore not be enough. FEFO must be combined with the customer’s commercial rules.

The WMS must know which customer a specific batch can be shipped to

More advanced inventory management therefore does not select only the batch with the nearest expiration. It also checks whether that stock meets the conditions of the specific order. When creating a warehouse task, the system can evaluate:

1. product,
2. required quantity,
3. available batches,
4. expiration dates,
5. the customer’s minimum shelf life,
6. stock status,
7. location,
8. other logistics priorities.

Only then does it determine the warehouse location from which the goods should be picked. The result is more precise stock rotation without requiring the warehouse worker to manually compare the dates on individual pallets.

Expiration should also influence put-away

Proper FEFO is not addressed only at issue. Where the stock is stored also matters.

If an item with a short remaining shelf life is stored in:

• a distant location,
• reserve storage,
• a less accessible position,
• or behind newer stock,

the risk increases that it will be overlooked during subsequent picking. The WMS can combine put-away rules according to:

• turnover,
• expiration,
• product type,
• storage temperature,
• required accessibility,
• dimensions and weight.

This turns FEFO from a dispatch rule into a principle for managing the entire life cycle of stock in the warehouse.

Critical stock should be identified before it expires

If the problem appears only on the expiration date, the options for response are minimal. It is far more valuable to know:

• what expires in 30 days,
• what expires in 14 days,
• what expires in 7 days,
• which stock does not have the expected consumption,
• and which items are overstocked relative to their remaining shelf life.

The WMS can therefore segment stock by time bands.

Remaining shelf life	Possible priority
Long	Standard mode
Shortening	Increased FEFO priority
Critical	Active stock resolution
Non-compliant	Blocking or inspection

 

The exact thresholds naturally differ by assortment. What matters is that the problem is identified before a write-off occurs.

Expiration data can lead to a commercial decision

Information about critical stock is useful not only for the warehouse. It can also affect:

• purchasing,
• sales,
• pricing,
• promotional activities,
• stock transfers,
• communication with the customer.

If the system shows that a particular batch has a high stock level and rapidly shortening shelf life, the company can react while the product still has commercial value. For example, it can:

• stop further purchasing,
• move the stock to a location with higher consumption,
• prioritize it for suitable orders,
• create a price promotion,
• or move it to another sales channel.

The WMS does not necessarily have to carry out the commercial action itself. It provides the information and operational options needed so that the decision does not come too late.

A write-off is often the result of a problem that arose much earlier

Goods may be written off today, but the cause may have arisen several weeks earlier. For example:

excessive purchasing → unsuitable put-away → the newer batch was picked first → the older stock lost demand → the remaining shelf life fell below customer limits → write-off.

This process shows why expirations cannot be managed only through a report of “what expires today”. It is important to be able to trace back:

• when the stock was received,
• where it was stored,
• how often it was moved,
• why it was not picked,
• which orders used a different batch,
• and when it became commercially unusable.

This creates data for further improvements in purchasing and warehouse rules.

Write-offs cannot be addressed through FEFO alone

FEFO is an important tool, but on its own it cannot solve excess inventory. If a company buys three times the quantity it can sell within the shelf-life period, the correct dispatch sequence will only mitigate the problem. Minimizing write-offs therefore requires a combination of several areas:

Area	What needs to be managed
Purchasing	Appropriate stock quantity
Receiving	Quality and remaining shelf life
Warehouse	Locations, batches and conditions
Picking	FEFO and customer rules
Sales	Use of at-risk stock
Analytics	Future write-off risk

 

This is also why modern WMS solutions are moving from passive warehouse records toward active, real-time orchestration of inventory and warehouse operations, which is one of the major logistics trends.

With fresh food, hours and handling conditions also matter

For fresh goods, expiration is only one part of the problem. The following can be equally important:

• storage temperature,
• chilled zones,
• time spent outside the required temperature,
• speed of receiving and dispatch,
• handling,
• quality control.

Stock may have a use-by date that is still sufficiently far away, but incorrect handling can significantly affect its usability. Therefore, in fresh-food logistics, an isolated FEFO rule is not enough. Warehouse processes must be aligned with the entire cold-chain and distribution flow.

At the HORTIM distribution center, food logistics management therefore includes receiving, quality control, put-away, storage, picking and dispatch within one controlled operation. For this implementation, ANASOFT states that approximately 3,000 types of fresh food are processed and up to 28,000 crates of fruit and vegetables are dispatched daily.

The batch remains important even after dispatch

Accurate batch records are important not only for minimizing write-offs. They are also essential for traceability. In the event of a complaint, a detected quality issue or a product recall, it is necessary to know:

• which batch is affected,
• where its stock is currently located,
• when it was received,
• which supplier it came from,
• who it has already been shipped to,
• how much of it remains in the warehouse.

Without detailed records, a company may block or recall a larger quantity of stock than is actually necessary when a problem occurs. A WMS makes it possible to link the physical movement of goods to specific batches, so the history does not end with the aggregate quantity on an inventory card.

Physical stock and sellable stock are not the same

A food warehouse may physically hold 500 units of a product. That does not automatically mean that all 500 units can be sold. Some may be:

• past the use-by date,
• too close to expiration,
• blocked by quality control,
• reserved,
• damaged,
• or unsuitable for a specific customer.

For planning, it is therefore necessary to distinguish between physically present stock and stock that is actually available to fulfill a specific order. The latter is the decisive value for logistics and customer service.

With multiple warehouses, stock transfers may also be decisive

Time-sensitive stock may not be at risk because there is no demand for the product. It may simply be in the wrong place. Warehouse A has an excess of a product approaching expiration. Warehouse B has nearly sold out of the same product. Without shared visibility, two parallel situations can arise:

• the first operation writes off the goods,
• the second places a new order with the supplier.

With a centralized view of inventory, a transfer can be evaluated instead. This type of decision-making is another example of why, in larger operations, a WMS is not assessed only by its ability to “record the warehouse”. What matters is the ability to actively work with stock during its remaining life.

Food waste also has an economic dimension

Writing off food does not mean only losing the purchase price. Before disposal, the stock may already have generated costs for:

• transport,
• receiving,
• inspection,
• storage,
• cooling,
• handling,
• relocation,
• inventory counting,
• disposal.

The later the expiration risk is identified, the more costs have already been invested in the product. The European Commission states that, according to its study, approximately 10% of food waste in the EU supply chain was associated with food date marking. This is a broader issue that also includes understanding the labels “use by” and “best before”, not only warehouse processes, but the figure shows that time and correct handling of dates matter in preventing waste.

What to monitor when managing expirations

The value of write-offs itself is a lagging indicator. It shows what the company has already lost. For active management, it is useful to also monitor indicators that signal the problem earlier. For example:

Indicator	What it can reveal
Stock by remaining shelf life	Future expiration risk
Value of critical stock	Financial risk
Average stock age	Rotation speed
FEFO exceptions	Incorrect dispatching
Write-off by SKU	Problematic assortment
Write-off by supplier	Receiving or shelf-life problems
Write-off by location	Unbalanced inventory

 

Only these data make it possible to look for the cause rather than merely record the consequence.

Five questions that reveal weaknesses in expiration management

1. Does the warehouse record expiration at the level of a specific batch?

If not, automatic FEFO is significantly limited.

2. Is remaining shelf life checked already at receiving?

If not, problematic stock may enter the warehouse without warning.

3. Can the system take the conditions of a specific customer into account?

If not, FEFO may select a batch that the customer no longer accepts.

4. Is at-risk stock visible before expiration?

If only products expiring today or tomorrow are addressed, there is little room for a commercial response.

5. Can it be determined why a particular batch remained in the warehouse?

Without this information, the same problem may recur.

When Excel or basic warehouse records are no longer enough

With a small assortment, an experienced warehouse worker can manage expirations manually. As the operation grows, however, the number of combinations increases:

• SKUs,
• batches,
• locations,
• customer rules,
• storage zones,
• orders,
• dates.

If, for example, one item has five batches and customers use three different remaining-shelf-life limits, the decision about the correct issue is no longer simple FIFO. With thousands of SKUs, this becomes an operational problem that must be evaluated for every warehouse task. At this point, the WMS delivers value precisely by applying the rules automatically and consistently.

A WMS does not have to merely record expiration. It can manage the warehouse based on it

The difference between simple record-keeping and management is fundamental. A record-keeping system reports: Batch 123 expires in seven days. A management system can use this information in decision-making: Batch 123 has priority for the next suitable orders, but it must not be used for customers requiring at least ten days of remaining shelf life.

This is the essence of an advanced WMS. The data are not merely stored. They affect the next warehouse operation. EMANS WMS manages inventory, warehouse locations and dispatch in real time and also supports picking principles including FEFO.

The goal is not to get fresh goods out of the warehouse at any cost

Minimizing write-offs must not mean shipping stock that no longer meets quality, safety or customer requirements. Proper management therefore combines:

1. inspection at receiving,
2. accurate batch records,
3. appropriate put-away,
4. FEFO,
5. minimum remaining shelf-life rules,
6. continuous monitoring of at-risk stock,
7. traceability,
8. analysis of the causes of write-offs.

A WMS provides a system layer that can apply these rules to the daily flow of stock. The goal is not to ship the oldest product. The goal is to ship the right batch at the right time to the right customer.

From expiration records to active inventory management

With time-sensitive goods, the value of stock changes every day. Therefore, it is not enough to know what has already expired. It is more important to know what is approaching expiration and whether there is enough time to react. A WMS can connect dates, batches, locations, orders and customer rules so that remaining shelf life becomes part of everyday warehouse decision-making. The result is not only more accurate FEFO. It is better control over:

• which stock should be shipped,
• which stock needs to be moved,
• which stock requires a commercial response,
• and for which stock further purchasing should already be prevented.

A write-off is best prevented before the stock becomes a problem

In food logistics, time cannot be stopped. But it is possible to make better decisions about which stock should move, when and where. The first step is therefore to map:

• how batches and expirations are currently recorded,
• how stock is selected for picking,
• whether minimum shelf-life rules exist,
• when the company learns about at-risk stock,
• and what causes write-offs today.

With fresh food, however, recording the date alone is not enough. Value is created when the system can turn that date into the right decision at receiving, put-away, picking and dispatch.

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