In the building materials industry, not all products are created equal. Some—like framing lumber or steel beams—can sit for months with minimal risk. Others, like adhesives, insulation rolls, and bagged concrete? They have a shelf life—and that means they require intentional stock rotation to avoid waste, warranty issues, and unhappy customers.
Poor stock rotation leads to:
Expired materials shipped to job sites
Lost revenue from unsellable products
Higher return rates
Damaged brand reputation
This step-by-step guide will walk you through how to build and enforce stock rotation strategies using best practices and ERP-driven workflows.
🛠️ Step 1: Identify Which Materials Require Rotation
Start by classifying your inventory by shelf life sensitivity.
Key product types to review:
Sealants, caulks, adhesives
Bagged or palletized concrete
Spray foam insulation or rolls
Waterproofing compounds
Paints, coatings, and epoxies
✅ Add an “expiration-sensitive” flag to these SKUs in your ERP for special handling.
🔁 Step 2: Choose the Right Rotation Strategy (FIFO or FEFO)
Not all rotation strategies are equal. The two most common are:
✅ FIFO (First-In, First-Out)
Oldest items are sold first
Ideal when manufacturing dates closely track with shelf life
✅ FEFO (First-Expired, First-Out)
Items are rotated based on expiration date, not receipt date
Better for SKUs where shelf life can vary between lots or suppliers
📌 Your ERP should allow per-SKU logic for FIFO or FEFO rules and track either lot number or expiry date.
📦 Step 3: Store Rotation-Based SKUs in Accessible Zones
Physical storage setup is crucial to support rotation.
Best practices:
Use pallet racking with front-facing pick sides for easy access
Keep date-sensitive items at eye level or lower to reduce pick errors
Create separate lanes or zones for each lot/expiration group
Avoid deep stacking that buries older product
✅ Pro Tip: Use color-coded labels or shelf markers for expiration awareness.
📲 Step 4: Enable Lot Tracking and Barcode Scanning
To rotate effectively, you need to know exactly which lot or batch is being picked and shipped.
Use barcode labels that include:
Lot number or batch ID
Expiration date
SKU and product name
Equip your team with mobile devices or scanners to:
Confirm correct lot at time of pick
Prevent picking expired or “blocked” lots
Update ERP inventory levels in real time
✅ Why it matters: Human error is drastically reduced when scanning validates picks against ERP rules.
🔔 Step 5: Set Expiration Alerts and Exception Reports in ERP
Waiting until stock expires to take action is too late. Your ERP should proactively flag:
Inventory within 30–60 days of expiration
Lots that haven’t moved in X days
At-risk SKUs by location or warehouse
Set up automated workflows to:
Notify purchasing and operations teams
Trigger markdowns or clearance pricing
Transfer slow-moving inventory to higher-demand branches
✅ Use these alerts to stay one step ahead of product loss.
♻️ Step 6: Train Staff on Rotation SOPs
Even the best tech won’t help if your team doesn’t follow through.
Create clear SOPs for:
Receiving and labeling new lots
Storing based on rotation priority
Picking from approved locations or batches
Flagging damaged, expired, or aging stock
✅ Include training on using mobile devices or scanners during putaway and picking.
💡 Step 7: Review and Optimize Based on Results
Track key rotation metrics like:
Stock write-offs from expired inventory
Fill rate on FEFO-flagged SKUs
Lot traceability reports
Frequency of rotation errors
Adjust your process based on:
SKU movement patterns
Seasonal demand
Supplier performance on shelf-life guarantees
✅ Your ERP reporting should help you find trends and fix gaps quickly.
Final Thoughts
Stock rotation isn’t just for perishable goods—it’s essential for any inventory that can expire, degrade, or become unsellable over time. With ERP-driven tracking, barcode integration, and disciplined SOPs, you can reduce waste, improve customer satisfaction, and protect your margins.
📦 Need help building a stock rotation workflow tailored to your product mix and yard layout? Let’s map it out step by step and set it up inside your ERP for accuracy and efficiency.
