Pharmacy inventory: batch and expiry done right
Why batch tracking and first-expiry-first-out (FEFO) are non-negotiable for pharmacies and distributors — and how to enforce them without slowing the counter.
For a pharmacy, expired stock is not just shrinkage — it is a compliance and safety risk. Getting batch and expiry right is the whole game.
Track the lot, not just the SKU
A medicine is not one number on a shelf. Each receipt is a lot with its own expiry. If your system only counts units, it cannot tell you which ones are about to turn.
Make FEFO the default
First-expiry-first-out should happen automatically at the point of sale — the soonest-to-expire batch leaves first. Picking a later batch should be possible but deliberate: a manager override with a recorded reason, never a silent slip.
See trouble before it arrives
A near-expiry report turns a quiet risk into an action list: return, discount, or move stock while it still has value.
Trace every outbound
When each sale records its lot, recalls and returns trace straight back to the batch — minutes of work instead of a manual hunt.
Keep the licences on file
Supplier and outlet licence details belong on the record, not in a drawer. Capture them once and they are there when you need them.
FAQ
What is the difference between FIFO and FEFO? FIFO sends out the stock you received first. FEFO sends out the stock that expires first. They are often the same batch, but not always — a later delivery can carry shorter-dated stock. For medicines the expiry date decides, so FEFO is the correct rule.
How early should near-expiry stock be flagged? Work back from your distributor's return window, which commonly closes a few months before expiry. Flag stock while a return, a transfer or a discount is still possible — around 90 days out for regular movers, and earlier for slow ones you cannot sell through in time.
Should the batch number and expiry appear on the bill? Yes. Printing the batch number and expiry on the sale bill protects both sides: the customer can check what they were given, and a recall or a return traces back to the exact lot without a manual hunt through the counter's records.
What do I do with expired stock sitting on the shelf? Move it off the sale shelf the day it turns, record it as written off or as a return to the distributor, and keep the paperwork. Expired medicine left in saleable stock is both a compliance risk and a number that quietly overstates the value of your inventory.