A shelf life management is playing a strategic role in modern supply chains. Integrating product shelf life into delivery, storage and order prioritization decisions makes it possible to anticipate or postpone deliveries more intelligently - reducing losses, optimizing stocks and guaranteeing a higher level of service.
Why does shelf life need to be at the heart of logistics decisions?
Shelf life has always been a critical factor in industry, especially in sectors such as food, beverages and pharmaceuticals. However, the challenge today is not just to know the shelf life of an item, but to integrate this information strategically into planning, delivery and storage decisions.
Betting on a holistic view of shelf life means going beyond operational control. It means incorporating this data into S&OP (Sales and Operations Planning), S&OE (Sales and Operations Execution) decisions and automated optimization logic, allowing for more flexible and intelligent planning.
Anticipating or postponing deliveries: when does it make sense?
The possibility of advancing or delaying a delivery based on shelf life depends on various factors, such as:
- Remaining shelf life
- Storage and transportation conditions
- Customer profile (modern channel, wholesale, distributor, export, etc.)
- Opportunity costs and risk of disruption or obsolescence
For example, a batch with a longer shelf life can be strategically postponed to fulfill a future order, while a batch nearing expiration can justify early delivery or the activation of a quick turn campaign.
Benefits of holistic shelf life management
Adopting a holistic approach brings gains such as:
1. Reducing losses and returns
With shelf life traceability integrated into planning, it is possible to avoid sending products with insufficient shelf life, reducing returns, fines and discards.
2. Dynamic and adaptable planning
The flexibility to anticipate or postpone deliveries based on shelf life allows for a more resilient operation in line with fluctuations in demand.
3. Sustainability and brand reputation
Reducing waste and guaranteeing products with adequate shelf life at the point of sale strengthens consumer confidence and the company's ESG commitments.
Challenges and good practices to implement
According to experts from Inciflo and Aptean, effective shelf life management requires:
- End-to-end visibility of the supply chain
- Establish clear FIFO/FEFO (first expired, first out) policies
- Use analytical and predictive technology to simulate scenarios and optimize decisions
- Engage commercial and operational teams in shelf life policies
- Create KPIs and dashboards focused on shelf life by SKU, customer and distribution center
A new look at shelf life: from liability to strategic asset
In practice, shelf life management stops being a constraint and becomes a lever for optimization when integrated with planning systems and algorithms. By transforming shelf life data into strategic information for routing, order allocation and fulfillment policies, the company gains agility, reduces losses and improves service levels.
Do you want to turn your shelf life management into a competitive advantage?
Linear supports leading companies in building mathematical models and optimization solutions that integrate shelf life, demand, production capacity and business rules into smarter logistics decisions.
Enter contact and find out how.
