How to Implement FEFO (First to Expire, First out) Inventory Management in Your Pharmacy

Serena’s pharmacy catered to the needs of all in the town but soon started struggling with inventory management. She would buy in bulk in order to satisfy the growing demand. But before long, she worried about wasting money on unnecessary stock. She also started experiencing expiry in large quantities.

One day, a colleague suggested the FEFO (First to Expire, First Out) method of inventory management. The colleague explained that FEFO would ensure that items with the earliest expiration dates are sold or used first, reducing waste, minimizing expiry and saving money.

After conducting an inventory audit, labelling and dating all items with their receipt and manufacture dates, Serena and her staff placed items with the earliest expiration dates in front where it was easily accessible.

At first, it was a bit of a challenge adjusting to the new system, but soon they noticed a reduction in waste and costs, and her cash flow improved.

Do you want to minimize expiry, reduce waste and save costs in your pharmacy in this inflation?

Keep reading as we discuss FEFO “First to Expire, First Out”, exploring the benefits and how you can adopt this effective inventory management system in your pharmacy.

What is FEFO Inventory Management?

FEFO is a simple yet effective inventory management technique that ensures that items with the earliest expiration dates are sold or used first. FEFO helps minimize waste, costs, and improve overall efficiency. When smaller community or hospital pharmacies and patent medicine stores combine FEFO with a just-in-time inventory management approach, the impact is even greater.

Benefits of Implementing FEFO in Your Pharmacy

Implementing FEFO gives you the following advantages including:

1. Reduces Expired Inventory: FEFO ensures that items with the earliest expiration dates are used before they expire, reducing waste and saving you money.
2. Improves Inventory Turnover: By selling or using items with the earliest expiration dates first, you can improve your inventory turnover, freeing up space and resources for new stock.
3. Enhances Patient Safety: FEFO helps ensure that patients receive the freshest medications, reducing the risk of expired or ineffective treatments.
4. Simplifies Inventory Management: FEFO streamlines your inventory management process, making it easier to track and manage your stock.
5. Reduces Overstocking: By using items with the earliest expiration dates first, you can avoid overstocking and reduce the need for costly storage solutions.

Adopting FEFO in Your Pharmacy

To optimize your pharmacy’s inventory management and reap the benefits of FEFO (First to Expire, First Out), follow these steps:

1. Conduct a thorough inventory audit: Begin by reviewing your current inventory to identify items with the earliest expiration dates including medications, supplies, and equipment. This step helps you understand your inventory’s age, quantity, and value, enabling you to make informed decisions about what to keep, discard, or replenish.
2. Label and date all items: Clearly label each item with its receipt or manufacture date, ensuring accurate tracking and identification. This simple yet effective step enables your staff to easily identify items with the earliest expiration dates and prioritize their use.
3. Store items with the earliest expiration dates at the front: Place items with the earliest expiration dates at the front and easily accessible to ensure they are used first. This storage approach prevents items with late expiration dates from being used before items with early expiration dates, reducing waste and the risk of expired inventory.
4. Regularly review and adjust your inventory: Schedule regular inventory reviews (e.g., quarterly or bi-annually) to assess the effectiveness of your FEFO system. During these reviews, identify areas for improvement, adjust your inventory accordingly, and make data-driven decisions to optimize your inventory management.
5. Train staff and establish procedures: Educate your staff on the importance of FEFO, ensuring everyone understands their role in maintaining an efficient inventory management system. Develop and document clear procedures for receiving, storing, and dispensing inventory, guaranteeing consistency and accuracy.
6. Monitor and analyse inventory metrics: Track key inventory metrics, such as inventory turnover, expiration rates, and waste reduction, to measure the success of your FEFO adoption. Use data analytics to identify trends, optimize your inventory strategy, and make informed decisions to drive continuous improvement.

The Remedial Health app can help implement FEFO (First to Expire, First Out) inventory management in the following ways:

1. Low Stock Notifications: The app sends push notifications when stock levels are low, ensuring instant restocking and uninterrupted sales operations.
2. Barcode Scanning Ability: The built-in barcode scanning feature simplifies inventory management and sales transactions, allowing for easy product addition and sales directly from the app.
3. Visual Data: The app provides visual data insights, enabling users to deduce customers’ preferences and optimize sales. This feature helps identify fast-moving items and ensures that items are sold before they expire.
4. Extensive Product Range: The app offers a wide range of pharmaceuticals, enabling users to browse and purchase products remotely.

Final Thoughts

FEFO (First to Expire, First Out) inventory management in your pharmacy will reduce waste, save money, and improve patient care. When items with the earliest expiration dates are sold or used first, you will be able to minimize expired inventory, improve inventory turnover, and enhance patient safety.

Adopt FEFO today and discover the benefits for yourself! To make FEFO implementation even easier, use the Remedial Health app, which offers features like low stock notifications, barcode scanning, inventory management, visual data insights, and an extensive product range.

Visit our website www.remedial.health to learn more.