Last updated on Aug 4, 2024

You're dealing with expired inventory items. How can you prevent waste and losses?

Dealing with expired inventory is a challenge you might face in your practice. It's crucial to manage this issue effectively to prevent waste and financial losses. Expired items can't be used for their intended purpose, leading to a direct hit to your bottom line. Fortunately, with a strategic approach, you can minimize the impact of expired inventory on your practice.

1 Track Expiry

Effective inventory management starts with tracking the expiration dates of all items in your stock. By implementing a system that alerts you before products expire, you can use them efficiently or move them out through discounts or donations. This proactive approach ensures that you're always aware of the shelf-life of your inventory, allowing you to plan ahead and reduce the number of items that expire unsold on your shelves.

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Lilibeth Santiago

Operations Leader | Process Improvement Consultant | Value-Based Care Model Consultant
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I keep a log on the cabinet door. We write down opened date and expiration dates on it. The items are arranged so that the closest expiration is easily accessed by those needing it. Every week the log is reviewed for items nearing expiration. During our huddles we talk about those expiring soon and thus the providers are aware to use those meds first if possible.

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Jacqueline Schaffer

Senior Operation Executive – Architects business turnaround & scaling strategies, design roadmaps to convert, and assesses business vitality for newly acquired practices.
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I have created a dot system for my practices. Each month has a color associated with it. There is a chart on the door. When the inventory comes in it is viewed for expiration. Oldest goes in front and newest dates go in back. This has stop inventory waste in the groups I manage. This process is carries over to the exam rooms as well. If a vial is open a color dot is placed and date to Discard is placed on label.

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2 Rotate Stock

To prevent items from expiring unnoticed, adopt the First-In, First-Out (FIFO) method. This means you'll use the oldest stock first, which is especially important for items with a limited shelf life. Organize your inventory so that older items are at the front and easily accessible. Regularly rotating stock also gives you the chance to inspect items for damage or impending expiration, further reducing the risk of waste.

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Jacqueline Schaffer

Senior Operation Executive – Architects business turnaround & scaling strategies, design roadmaps to convert, and assesses business vitality for newly acquired practices.
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In the hospital we use par management of our inventory. Central supply has a set limit that is allowed to be delivered at and is allowed to be stored. As they restock the items are saved in our software system and is scanned as used. It deducts inventory as used allowing central supply to replenish as needed!

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3 Supplier Relations

Building strong relationships with your suppliers is key. If you're frequently facing expired inventory, discuss flexible purchasing options or the possibility of returning items close to expiration. Some suppliers may offer consignment stock, where you only pay for items once they are used or sold, reducing the risk of having expired products. Negotiating better terms can help align your stock levels with actual usage rates.

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4 Inventory Audits

Regular inventory audits are essential to identify and address any issues with stock management, including the handling of expired items. An audit helps you to reconcile physical stock with your records, ensuring accuracy in your inventory levels. It also allows you to uncover patterns in product usage, which can inform future purchasing decisions and help you maintain optimal stock levels.

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5 Disposal Practices

When disposal of expired items is inevitable, do so responsibly. Research and adhere to local regulations regarding the disposal of medical or other specialized waste. Sometimes, products can be recycled or repurposed rather than thrown away. For instance, expired medical supplies might be used for educational purposes. Proper disposal practices ensure that you're not only reducing waste but also protecting the environment and public health.

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6 Technology Tools

Leverage technology to streamline your inventory management. There are software solutions designed to track inventory, including expiration dates, which can automate many of the processes discussed above. These tools can alert you to upcoming expirations, suggest order quantities based on historical data, and even automatically rotate stock levels digitally. Investing in such technology can save time and reduce human error, leading to a more efficient management of expired items.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You're dealing with expired inventory items. How can you prevent waste and losses?

1

2

3

4

5

6

7

1 Track Expiry

2 Rotate Stock

3 Supplier Relations

4 Inventory Audits

5 Disposal Practices

6 Technology Tools

7 Here’s what else to consider

Practice Management

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You're dealing with expired inventory items. How can you prevent waste and losses?

1

2

3

4

5

6

7

1 Track Expiry

2 Rotate Stock

3 Supplier Relations

4 Inventory Audits

5 Disposal Practices

6 Technology Tools

7 Here’s what else to consider

Practice Management

Rate this article

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