How can you effectively rotate your store's inventory to prevent spoilage or obsolescence?

Managing inventory in Retail - it`s work in a complex or chaotic systems domain. The information flows, number of SKUs and input data here are Huge. Added to this the high volatility of the market, even in developed countries - good example is food crisis in the UK in Feb 2023, when tomatoes, peppers, lettuce, etc. disappeared from store shelves. Therefore, to effectively manage trade turnover in Retail, we need: 1–Investments in digitalization and automation of business flows. The more intricate system, the more we invest in the IT component 2–Assessing the movement of goods through S&OP, and S&OE (if we want a competitive advantage). S&OP methodology combines all business plans into one set of Tactical Plans 3–Supply Chain Risk Management

Categorisation of products - High End, fast moving High end, slow moving Low cost, fast moving Low cost, slow moving. We need to have Pareto (80/20) clarifications and categorisations. Now, it depends what are the other cost factors like location and inventory holding cost. If we are at Manhattan, we can have only high end fast moving items as priority and some high end slow movings at available places from where we can still sale and backorders. Again, mast moving items are kept in the area from where the time and cost taken to pick should be kept minimum with very high service level. -Pruning of leftover products are very important as tail keeps increasing. So we must have very clear policies on what to keep and for how much time.

All the steps to manage inventory are excellent. Inventory evaluation is critical as most products have sine wave exploration. The only way to measure the velocity of an item is to extract sales data with a profit every three months and analyze that item's sales movement. You are arranging your inventory in the warehouse, starting with "A" products, representing 80% of your profits. Once a product drops off this, move it to the "B" location and continue rolling until it gets to the "D" and then scrap the item.

Focus your resources on the top 20% of SKUs. Give your retail store managers the ability to purchase in small batches and purchase as often as possible in other words, increase replenishment to the stores, which will eliminate overstock. For all SKUs non-perishables keep the options of callback open.

I agree with you Anna. Also, reiterating departmental objectives as aligned to overall company objectives to your staff is key to performing well in their areas of functionality/responsibility.

As a supermarket produce department manager, we prevent waste with an effective rotation system: Rotation System Selection: We choose a system based on product characteristics, software, and staff training. We primarily use FIFO for perishables, selling older items first to minimize expiration. Ongoing Training: Staff receive training to implement the system, recognizing its impact on product quality and customer satisfaction. This alignment reduces waste and improves the customer experience.

As a produce team department manager, we prioritize efficient inventory rotation by monitoring levels, removing expired items, optimizing stock, and analyzing sales trends. This minimizes waste and ensures fresh, quality produce for our customers.

If the system is mature, Lean Supply Chain Management works well at this stage. Lean in production - understand the Methodology of Minimizing Waste, Reducing Costs and Reducing Production Time. Lean SCM – called Demand Driven Material Requirements Planning (DDMRP) Demand Driven MRP is a pull flow that provides end-to-end supply chain visibility with dynamically configurable buffers. This is a methodology for planning and supply chain management that allows you to reduce enterprise inventories and at the same time increase the level of service. Optimal inventory management, industrial inventory management, supply chain inventory management, enterprise inventory management.

In my experience at the retail level it’s important that everyone knows how to read date codes or have access on how to read them. Make a point to pick a set day or week to check dates and rotate as necessary. Sometimes it’s easier to have set employees check dates but don’t discourage others from learning too. Don’t be afraid to mark down slow moving products to get them moving. In the end it’s about getting the product in the hands of the customers at its most useful point and to reduce spoilage.

Everything always starts with the leader. As a manager, you`re responsible for providing your employees with a clear understanding of their areas of responsibility and their functionality. They also need to know that they are not perceived only as a “function”, and they are seen as people. If you provide these 2 points, the organization of all other stages will be simple

Efficient inventory rotation relies on: 1. Training: Staff education on proper handling and rotation. 2. Roles & Accountability: Clear responsibilities for task execution. 3. Feedback Culture: Encouraging staff input for improvement. 4. Recognition & Rewards: Acknowledging dedication to maintain efficiency. This approach minimizes waste and ensures fresh produce for customers.

Aside from all the inventory management techniques mentioned, such as ABC analysis, lifecycle management, consumption rates, etc., there is also a technical cache that needs to be considered, such as product discontinuation. From my experience in the auto parts industry, keeping up to date with service bulletins, recalls, etc from principals is keen to managing and keeping the right inventory, thereby preventing obsolescence and excess/unwanted inventory.

Implementing FIFO/FEFO mechanisms, collaborating with suppliers, staff training and offering discounts are the key strategies to ensure timely turnover of inventory, minimize waste/ spoilage and meet customer demands efficiently.