Introduction
Effective stock management is one of the most critical aspects of food production. From managing perishable raw ingredients to organizing bulk packaging for shelf-stable goods, your inventory strategy can make or break production efficiency, product quality, and profitability.
At FoodResso, we help food businesses of all sizes implement stock systems that are smart, traceable, and adaptable. This article explores how to manage stock in fresh (short shelf-life) and long-life food operations, with examples, practical tools, and KPIs to track.
“Inventory is money sitting around in another form.” — Rhonda Abrams, Business Columnist
1. Understanding the Differences in Stock Requirements
Fresh Food Products:
- Short shelf life (days to a few weeks)
- Sensitive to temperature and humidity
- Require daily or weekly delivery and monitoring
Example: A UAE salad manufacturer must rotate raw vegetables daily and dispose of unused produce after 48 hours.
Shelf-Stable Products:
- Long shelf life (6 months to 2 years)
- Require less frequent rotation
- Allow for bulk purchase and seasonal storage
Example: A pasta factory in Jordan keeps durum wheat flour stocks for up to 4 months in silos, requiring monthly cycle counts.
2. Core Principles of Effective Stock Management
A. First-In, First-Out (FIFO)
Especially important in fresh food where expiry is fast. Old stock must be used first.
How to implement:
- Use color-coded tags or barcode dates
- Organize shelves by delivery date
- Train warehouse staff in FIFO flow
B. Batch and Lot Tracking
Essential for both quality control and food safety recalls.
Tools to use:
- ERP systems (like Odoo, SAP)
- Manual batch logs for small businesses
- Barcode or QR code scanners
FoodResso Tip: Use mobile barcode readers connected to Excel or Google Sheets for low-cost tracking.
C. Temperature and Condition Monitoring
Fresh products must be stored in the right temperature and humidity.
Solutions:
- Install digital temperature loggers
- Monitor cold room logs daily
- Keep records for audits
D. Minimum and Maximum Stock Levels
Set stock thresholds based on historical usage and lead times.
Case: A juice company in Saudi Arabia uses reorder points to trigger weekly citrus deliveries, reducing overstock by 25%.
3. Stock KPIs to Track
- Inventory Turnover Ratio = COGS / Average Inventory
- Days Inventory Outstanding (DIO) = (Avg Inventory / COGS) × 365
- Stockout Rate = (# of stockouts / total SKUs) × 100
- Expiry Waste % = (Value of expired stock / total stock value) × 100
- Shelf Utilization Rate
4. Warehouse Layout and Inventory Flow
A well-planned layout improves speed, hygiene, and FIFO compliance.
Best practices:
- Define receiving, storage, and dispatch zones
- Use racks and bins by category
- Separate allergens and temperature zones
- Ensure clear movement paths for workers and forklifts
Case Study: A dairy plant in Egypt redesigned their raw material storage to reduce walk distance by 30%, saving 6 hours per week in labor time.
5. Digital Tools for Inventory Control
Whether you’re a startup or multinational, digital tools can help track, plan, and optimize inventory:
- Odoo Inventory – Open-source ERP with barcode support
- Katana MRP – Designed for food and small manufacturing
- Excel/Google Sheets – Still useful with structured templates
FoodResso Tool: We offer an editable inventory template that tracks expiry, quantities, and alerts for restocking.
6. Startup Tips for Lean Inventory
- Source locally when possible to reduce lead time
- Do weekly raw material audits
- Work closely with suppliers to align on demand forecasts
- Buy packaging in bulk for long-life products to save cost
Example: A start-up in Morocco producing dried fruits uses shared cold storage and a digital inventory log to manage 20+ SKUs without a full ERP system.
Final Thoughts
Stock management is not just logistics—it’s a strategic enabler of profitability and product quality.
Whether you’re handling sensitive fresh products or stable dry goods, the right systems can cut waste, boost traceability, and ensure your factory flows like clockwork.
If you’re unsure where to begin or want to upgrade your stock control system, FoodResso offers tools, templates, and on-site consultation to get you started.