Warehouse & Inventory · SOP

First‑In‑First‑Out Stock Rotation

Systematic method to rotate inventory so that older stock is used or shipped before newer stock. Reduces waste, spoilage, and compliance risk in date‑sensitive goods.

Estimated Time

15 min

Difficulty

Beginner

Regulation

CFIA / FDA

Version

1.0

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Purpose

To ensure that inventory is rotated on a First‑In‑First‑Out (FIFO) basis, minimizing losses from expired, obsolete, or deteriorated goods. This procedure protects product integrity, supports regulatory compliance, and reduces carrying costs by preventing stock‑outs and over‑stock of old inventory.

Scope

This SOP applies to all warehouse personnel handling raw materials, work‑in‑process, and finished goods with date sensitivity (e.g., food, pharmaceuticals, chemicals). It covers receiving, put‑away, bin rotation, picking, and periodic auditing. All shifts and departments are required to adhere to these steps.

Safety Precautions

LOTOLockout/tagout conveyor systems and pallet jacks before adjusting racking or removing jammed pallets.
PPEWear steel‑toe boots, cut‑resistant gloves, and safety glasses when handling pallets or rotating heavy loads.
LIFTUse mechanical aids (forklift, pallet jack) for loads over 23 kg. Keep back straight and lift with legs when manual handling is unavoidable.

Required Tools & Materials

Date label printer / handheld label maker
Colour‑coded bin tags or stickers (month, year)
Pallet jack or forklift (where applicable)
Barcode scanner or mobile terminal (if using WMS)
Inventory management software (e.g., SupplyGrid for automated replenishment)
Markers, clipboards, and audit checklists

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Procedure: Step-by-Step

1 Inspect incoming stock — verify manufacturing/expiry dates match packing slip. Record date in system and apply date label if missing.

2 Place new stock behind or below older stock on shelves/pallets. Ensure older inventory remains accessible without moving newer stock.

3 Label each bin or pallet with colour‑coded date tag. Update inventory software to reflect location and lot date.

4 Pick oldest stock first — select items with earliest dates when fulfilling orders. Use pick lists sorted by expiration date if software supports.

5 Perform weekly cycle counts — verify FIFO compliance. Flag expired or near‑expiry items for immediate disposal or markdown. Record discrepancies.

6 Train new operators on FIFO principles and sign off on competency. Document training in personnel records.

First‑In‑First‑Out Stock Rotation

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