Batch & Expiry Tracking for F&B and Pharma Trading
Short answer: Batch and expiry tracking records which production lot each unit belongs to and when it expires — at both goods receipt and goods issue. Without this, you can't trace a product recall, prove FEFO compliance, or accurately value near-expiry stock.
Why This Matters Beyond Compliance
Regulatory requirements drive most companies to implement batch and expiry tracking. But the operational value is separate from compliance, and often larger.
Consider what happens without it:
- A product recall requires you to identify which customers received units from a specific batch. Without batch tracking at goods issue, you're contacting every customer who ever bought the product.
- Near-expiry stock gets issued after stock with a longer shelf life because the picking sequence ignores expiry dates. You end up with expired write-offs that were preventable.
- Stock valuation includes units that are effectively unsellable. The balance sheet overstates inventory value.
For trading companies distributing F&B or pharmaceutical products, these aren't hypothetical risks.
FEFO: First Expired, First Out
The picking rule for expiry-tracked stock is FEFO — First Expired, First Out — rather than the standard FIFO. The system needs to:
- Record expiry date at goods receipt (by batch)
- Sort available batches by expiry date when a pick job is generated
- Direct warehouse staff to pick from the earliest-expiring batch first
- Record which batch was picked against each delivery order
This sounds straightforward. The friction is in execution: warehouse staff need a system that tells them which batch to pick at the time of picking, not which one they should have picked in hindsight. That means batch information needs to be on the pick slip or handheld device — not just in the back-end records.
What Needs to Be Captured
| Transaction | Batch Data Required |
|---|---|
| Purchase order / goods receipt | Batch number, manufacturing date, expiry date, quantity per batch |
| Internal transfer | Batch tracking must carry through location changes |
| Sales order / delivery | Batch number(s) allocated to each order line |
| Return / credit note | Original batch number (to return to correct batch pool or quarantine) |
| Stock adjustment | Batch reference for write-offs (damaged, expired) |
Missing the batch reference at any of these points breaks the chain.
AutoCount and Batch/Expiry
AutoCount supports batch and expiry tracking through its serial/batch number module. The standard setup handles basic lot tracking. For more demanding requirements — FEFO enforcement at pick, near-expiry alerts, multi-location batch segregation — the standard module needs configuration or extension.
The inventory warehouse system can be built to enforce FEFO at the pick level, generate near-expiry reports at configurable thresholds (for example, flagging stock within 30 days of expiry), and produce the batch traceability reports that regulatory audits or customer recalls require.
Near-Expiry Management
A batch tracking system that doesn't act on expiry data is an incomplete solution. Near-expiry alerts should trigger:
- A review of what promotional or clearance action can move the stock
- A costing review if the stock will be written down
- A notification to procurement to adjust the next purchase order
Automated alerts based on expiry thresholds — sent to the right person at the right time — are a practical extension of the base tracking function.
FAQ
Does my system need to track batches for every product, or just regulated ones?
You can configure batch tracking per item. High-value items, regulated categories, and items with variable shelf life are the priority. Items with no expiry or traceability requirement don't need it and adding batch tracking universally adds picking overhead without benefit.
How do I handle a product recall if I only have partial batch records?
Partial records limit you to a partial trace. You can identify which delivery orders carried units from the batch in question, but only for the portion of the history that was recorded. The recall scope defaults to everything outside the traced portion. This is the argument for getting batch tracking right from go-live, not retrofitting it later.
Can batch tracking work with barcode scanning on the warehouse floor?
Yes, and it's the recommended implementation. Barcode or QR scanning at goods receipt records batch and expiry date without manual entry. The same scan at pick confirms batch allocation. This reduces keying errors and speeds up both receiving and dispatch.
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