You're struggling with inventory levels of perishable goods. How do you prevent wastage and maximize profits?

As an expert in inventory management, I understand the challenges that come with handling perishable goods and the importance of preventing wastage while maximizing profitability. Accurate demand forecasting is crucial when dealing with perishable goods. By analyzing historical sales data, seasonal trends, and market conditions, you can better predict demand and adjust inventory levels accordingly to prevent overstocking and wastage. Need to closely review the sales and procurements. In case of any perishable articles are not making good amount of sales, then we must minimize the procurements, so that we can minimize the damages/wastages and margin loss

Utilize FIFO inventory rotation to ensure that older perishable items are sold or used before newer ones. This practice helps prevent spoilage by ensuring that products with shorter shelf lives are consumed first. Also need to review the temperature controls for chillers, freezers, refrigerators, cold display units and cold rooms. Need to ensure that all the equipment’s are working and sufficient predefined temperature controls are installed appropriately for the department wise. This continues approaches could help us to minimize the wastage, and damages. Also help us to deliver the high quality standard of merchandise for our customers

While FIFO is crucial, the storage and packaging methods must align to ensure freshness. Collaborate with suppliers to ensure proximity, enabling more frequent, smaller orders that reduce the risk of shrinkage.

Maintain open communication with suppliers to ensure timely deliveries of fresh perishable goods and reduce the risk of overstocking. Work closely with suppliers to establish optimal order quantities and delivery schedules based on demand patterns. Regularly inspect perishable goods for freshness, quality, and expiration dates. Implement proper storage conditions, such as temperature control and humidity levels, to extend the shelf life of products and reduce wastage. Implement promotional strategies such as limited-time offers, bundle deals, or discounts on perishable items nearing their expiration dates to boost sales and minimize wastage.

Creating the awareness and providing adequate training to the retailers would be helping us to minimize the losses. Establish partnerships with local food banks, shelters, or composting facilities to donate or recycle unsold perishable items instead of letting them go to waste. This not only reduces wastage but also fosters positive community relationships. By incorporating these strategies into your inventory management practices, you can effectively prevent wastage of perishable goods and maximize profitability in your business. Remember that proactive planning, effective communication, and continuous monitoring are key to successfully managing perishable inventory.

Giving discounts on such products to retailers based on their volumes will incentivise them to buy the product more. In such a case the company may earn lesser profit but will earn more than writing off stock.