Why Your Stocktake Belongs in Independent Hands
When a warehouse team counts its own stock, it is auditing its own work. Here is why auditors insist on an independent party — and what actually changes in the numbers.
Read ArticleThe rule is well known; the practice is rare
There is no warehouse that does not know the FIFO principle (first in, first out), and no pharmaceutical or food warehouse that does not know FEFO (first expired, first out). Yet damaged and expired stock appears in every count. Why?
Reason one: the design works against the rule
When new goods are stored in front of older ones in the same location, you are asking the operative to make an extra effort in order to follow the rule. And a rule that demands extra effort is not followed consistently.
The fix is a design fix, not a training one: storage locations that allow loading from one side and picking from the opposite side, or separate locations allocated to different batches.
Reason two: no batch traceability
If the system knows only the quantity, with no receipt date or batch number, there is no way to tell which units are older. Batch/lot tracking is not a luxury in shelf-life sectors — it is a basic requirement.
Reason three: no measure
What is not measured is not done. Measure the proportion of items picked in the correct sequence, and the ratio of damaged stock to total inventory, monthly. When the figure appears in a report that gets discussed, behaviour changes.
When do you choose FEFO over FIFO?
With shelf-life goods, the oldest receipt is not necessarily the nearest expiry. Pharmaceuticals, food and chemicals are always managed under FEFO — and confusing the two carries a direct cost in write-offs.
United Integrated Team
