Tips and strategies to effectively manage best before and expiry dates on convenience store inventory
Most consumers are inclined to check code dates on perishable items such as milk, but they do not pay as much attention to dates on other consumables such as packaged goods. I recently had an interesting experience with a retailer regarding an expired item I had purchased in a specialty store. I noticed when I got home that the product I had purchased had expired two months previously. While this is a best before date, not an expiry date, I still felt that this was an extensive time because this item was not something I would use immediately but would keep in the pantry. I decided to take this item back to the store, although it was inconvenient to do so. The response I received from the store manager was very positive. She was mortified that the item was so far past the best before date. She asked me if I wanted a replacement item that was not out of code, which was perfectly fine with me. We went to the shelf and found that all the items on the shelf were out of code. The manager was clearly distressed by this. She offered me full credit for the item I had purchased or 20% off another item since I had to go out of my way to come back to the store. I appreciated her consideration of my time.
The ideal situation, of course, is not to have any out-of-code items on the shelf at any time. Effectively managing inventory to ensure the freshness of product not only improves your store image, but also minimizes inventory write-offs for unsaleable product. Some direct store delivery vendors manage this for the stores, but other items will need to be managed by the staff in the store. The question is how to do that effectively.
Let’s start with understanding the difference between best before dates, and expiry dates. The Canadian Institute of Food Safety (CIFS) defines expiry dates as: “ dates are required on certain foods that have specific nutritional compositions that could falter after the determined expiration date.”
These items need to be closely monitored to ensure that customers are not sold items that are past their expiry dates.
Store employees need to be trained to be diligent about monitoring expiry dates and rotating these items effectively in the cooler or in storage.
This is critical because not only do we not want to make anyone ill from consuming expired products, but the cost of writing off expired items can be detrimental to the store profitability if the amount of expired items is excessive.
It is also important for convenience stores to maintain an image of cleanliness and being able to consistently supply top quality, fresh product to grow sales over the long term.
Best before dates are defined by the CIFS as “when the durable life period of the food ends.”
This is the date after which the manufacturer does not guarantee the freshness of the product regarding taste and nutritional value. The best before date does not apply if the product has been opened or improperly stored.
Most consumer-packaged goods have best before dates. It is therefore important to ensure that the inventory in your store is rotated and monitored to ensure that the best before date is not exceed.
The first step in this process is to have staff members verify the best before dates of product that they are receiving to ensure that the product is fresh.
Secondly, ensure that the fresh product is placed behind or below the product that has a shorter best before date. In other words, the stock needs to be rotated in a FIFO manner: first in, first out.
Best practices indicate that store staff should have a schedule to regularly check products in the store to identify any items that are nearing the best before dates. Any products that are close to expiry or best before dates could be placed on promotion at a "buy two for $x.xx" price point to move the product quickly.
The idea is to at least recoup the cost of the items before they need to be written off. The timeline required to run a promotion will depend on how much perceived demand there is for this item when placed on promotion.
In the unlikely event that an expired product is sold to a customer, ensure that all employees are aware of your policy on how to handle crediting the customer and any compensation for the customer. All these instances must be documented so that improvements to the process of monitoring inventory can be implemented to avoid future recurrences of this issue.
Ensuring that your store manages expiry dates and best before dates effectively on stock is of critical importance to improving your store image.
Consumers will not trust your location with foodservice items if they find out of code items on your shelf. Additionally, managing your inventory effectively will improve your inventory turnover, minimize stock write-offs and therefore improve your store profitability.
