In inventory management, what is stock rotation?

Stock rotation is a vital practice in inventory management aimed at ensuring that products are used in the order they are received. This approach helps in preventing the obsolescence of older stock and minimizes the risk of spoilage, particularly for perishable goods. The concept is rooted in the idea that items that have been in inventory the longest should be the first to be utilized or sold. This ensures that the inventory remains fresh and aligned with demand while supporting efficient resource management.

Implementing stock rotation effectively involves organizing the storage of goods so that the older items are easily accessible and can be picked first during order fulfillment. This practice helps reduce waste and ensure product quality, making it a standard procedure in various industries, especially food and pharmaceuticals.