Inventory how-to

How to manage inventory for perishable products

Perishable inventory needs tighter reorder cycles, shorter cover targets, and tracking of expiry or best-by dates by batch.

Short answer: Perishable inventory needs tighter reorder cycles, shorter cover targets, and tracking of expiry or best-by dates by batch. You manage this by ordering smaller amounts more often, pulling older stock first, and watching sell-through daily rather than weekly.

Set shorter cover targets

For perishables, do not order weeks of cover like you might for durable goods. Set days of cover to match how fast the product actually turns and how long it stays sellable. If a product spoils in 20 days, your cover should be well under that, so you are not sitting on stock that expires before it sells.

Track batches and expiry dates

Perishables need lot or batch tracking so you know which units expire first. This means recording expiry dates on receipt and applying a first-expired-first-out picking rule. Without this, you risk shipping older stock behind newer stock, or discovering expired units during a stocktake.

Watch sell-through more often

Daily sales on perishables can swing a lot with weather, promotions, or shelf life nearing its end. Check actual sales against forecast more often than you would for stable, non-perishable items, and adjust order quantities down fast if sell-through slows.

Plan for markdowns and waste

Build a routine for marking down stock as it nears expiry, and track waste separately from normal sales so your demand forecast is not skewed by units you had to throw out or discount heavily.

Step by step

  1. List every perishable SKU with its shelf life in days from receipt to expiry.
  2. Set days of cover per SKU well below shelf life, leaving a safety margin for slow weeks.
  3. Record expiry or best-by date on every incoming batch and tag older stock for first-out picking.
  4. Check sell-through at least every few days, not just weekly, for fast-moving perishables.
  5. Set a markdown trigger point, for example 5-7 days before expiry, to move stock before it is wasted.
  6. Log units written off as waste separately from sales so they do not inflate or distort future forecasts.
  7. Shorten supplier lead time where possible, since shorter lead times let you hold less stock and reduce spoilage risk.

Worked example

Say a store sells a refrigerated snack bar with a 30-day shelf life, averaging 10 units a day. Lead time from the supplier is 4 days and safety stock is 2 days, so reorder point is 10 x (4 + 2) = 60 units. Instead of ordering 20 days of cover like a non-perishable item, the store sets cover at 10 days to avoid spoilage, so order quantity is 10 x (4 + 10) - (current on hand of 50 + 0 on order) = 90 units. The store also flags any batch with less than 7 days of shelf life left for a markdown.

How SteadyShelf helps

SteadyShelf can forecast daily sales and give you an order-by date and suggested quantity per SKU, which helps you avoid overordering perishables. It does not do lot or batch tracking, expiry dates, or markdown automation, so you will need to track expiry dates and apply first-expired-first-out picking manually, outside the app.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

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FAQ

Can SteadyShelf alert me when a batch is about to expire?

No. SteadyShelf does not track lot numbers, batches, or expiry dates. You need a separate process, such as a spreadsheet or a dedicated tracking tool, to flag stock nearing its expiry date.

How do I stop overordering perishable stock that might spoil?

Set your days of cover lower than the product's shelf life, and check sell-through often so you can cut future order quantities quickly if sales slow down. SteadyShelf's suggested order quantities are based on your chosen days of cover, so setting that number conservatively for perishables helps limit spoilage risk.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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