Stock Review by Batch: Slow-Moving and Near-Expiry Inventory

Direct answer: Review stock batch by batch, compare on-hand units with recent net outbound movement over a defined window, then classify each line as slow-moving, near-expiry, blocked or unsaleable and attach an action owner and a review date. Slow-moving is a demand question; near-expiry is a date question. They often overlap, but they need different actions and approvals. A total on-hand figure per SKU is accurate and still not actionable because it hides which batch is ageing, which quantity is blocked, and whether inventory is moving to outlets or only arriving at the distributor.

Separate the four inventory states before choosing an action

Teams lose time because one word is used for four conditions. A batch can hold two states at once, for example slow-moving and inside its near-expiry window; record both rather than picking one.

Do not set near-expiry thresholds by habit. The window should come from written policy agreed with the supplier, because shelf life, pack format and customer acceptance rules differ by product. If no written window exists, that gap is the first finding of the review.

Inputs to collect before the review meeting

• On-hand quantity by location and batch, not just an SKU total. Warehouse, van and consignment locations can behave very differently.
• Recent net outbound: shipments to outlets minus returns, refusals and cancelled lines, over a stated window such as the last 28 days. Exclude brand-to-distributor shipments, which measure sell-in, not consumer or outlet demand. State which convention you use, because it varies between companies.
• Batch identity and dates: batch or lot code, production date where available, and expiry date as recorded.
• Status flags and reason codes, so blocked quantity is not counted as available.
• Action owner and next review date for every line. A review without these two fields becomes a report nobody acts on.
• Data freshness timestamp, so participants know how old the figures are.

Unit and identifier inconsistencies are a common source of disagreement. If one system records cartons and another records singles, or if the same product carries two codes, reconcile the units before discussing whether inventory is slow. The same discipline used to explain why distributor records do not match physical inventory applies here: stock record discrepancies usually surface at batch and location level.

How to run a batch-level stock review

1. Collect batch-level inputs. Gather on-hand quantity by location and batch, recent net outbound, batch identity and dates, status flags and reason codes, action owner and next review date, and a data freshness timestamp.
2. Compare on-hand with net outbound. Use a stated window such as the last 28 days. Exclude brand-to-distributor shipments, which measure sell-in, not consumer or outlet demand, and state which convention you use.
3. Classify every line. Record slow-moving, near-expiry, blocked or unsaleable status. Record both states where a batch meets two tests.
4. Calculate days of cover only where it is valid. Days of cover equals on-hand units divided by net daily outbound. Calculate it only where net daily outbound is positive; where outbound is zero or negative, flag the line for manual review instead of scoring it.
5. Assign one action, an owner and a review date. Use the limited action set below and record who approves it.

Days of cover is a screening device, not a demand forecast. It tells you which batches deserve attention first; it does not predict what outlets will buy next month.

A worked review table

The table below is an illustrative example with hypothetical products and dates, not a recommended cadence or threshold. Days of cover equals on-hand units divided by net daily outbound, and is only calculated where net daily outbound is positive. Where outbound is zero or negative, the line is flagged for manual review instead of scored.

Choose from a limited set of actions, and record the approval

For each line, pick one action and name who approves it:

1. No action, monitor – the batch is inside policy and outbound is adequate. Keep the review date.
2. Cap or defer the next order – reduces further build-up without moving stock already held.
3. Rebalance between locations – transfers inventory to where outbound exists, subject to handling cost and shelf life in transit.
4. Outlet-level activation – only with approved terms, and only after checking whether outlets actually sell the item. Do not assume a promotion will clear a batch.
5. Return to brand or supplier – depends on the agreement; the credit must be reconciled against the physical quantity received. Return matching between distributor inventory and credit records is a separate control: return reconciliation.
6. Write-off or disposal – for unsaleable stock, following documented approval.

Common mistakes in this review

• Treating brand-to-distributor shipments as demand, which makes ageing stock look healthy.
• Reporting SKU totals, where a fresh batch masks an older one behind it.
• Calculating days of cover on zero or negative net outbound; the result is meaningless or negative, so flag the line instead.
• Including blocked stock in available stock and promising it to another outlet.
• Leaving lines without an owner or a review date, so the same batch reappears next month unchanged.

Where a distributor-facing system fits

This review can run on a spreadsheet for one distributor and a small range. The operational question changes when there are many batches, many locations and several distributors: can the team see batch-level inventory, expiry dates, status codes and outlet-level movement without assembling them by hand each cycle?

Airpalm publicly describes mobile visits, route planning, store audits, sales orders, inventory and promotion management (airpalm.com, checked 9 October 2026). Whether the inventory view captures batch and expiry attributes, and how blocked or returned quantities are represented, needs to be confirmed in a demonstration and a written scope, along with supported order types, inventory boundaries and access controls.

A restrained next step: run this table for one distributor and one category for a full review cycle, then use the gaps you find — missing expiry data, unclear ownership, sell-in mixed with sell-out — as the requirements list when you evaluate tooling. Start from airpalm.com if you want to see how Airpalm describes its distribution-facing scope.

Frequently asked questions (FAQ)

How should we define near-expiry if the supplier and distributor use different windows?

Use the written window in the supplier agreement or product policy as the reference, and record any difference as an exception on the review sheet. Where no written window exists, raise it with the supplier principal before classifying batches, because the window depends on shelf life, pack format and customer acceptance rules rather than on a single company-wide number.

Should slow-moving stock be returned to the brand straight away?

Not automatically. Return eligibility depends on the agreement, and a return only resolves the issue when the physical quantity received matches the credit note. Many teams first test transfer to another location, a capped next order or an approved outlet activity, and reserve returns for inventory that is also near-expiry or unsaleable.

Why do you refuse to calculate days of cover when net outbound is zero or negative?

Days of cover divides on-hand units by net daily outbound. If outbound is zero the result is undefined, and if returns and cancellations exceed shipments the result is negative, which reads as a useful number while meaning nothing. Flag those lines for manual review: check whether any outlet sells the item, verify the physical quantity and confirm the batch data.

Who should own the action on each line?

Ownership follows the state of the stock. Slow-moving lines usually sit with channel operations and the distributor inventory coordinator; near-expiry lines need the distributor principal and the brand demand planner because activity or return decisions require approval; blocked stock stays with quality or claims; unsaleable stock sits with returns and credit control.

Can a demand forecast replace this review?

No. A forecast estimates future demand; this review checks what is physically held today, in which batch, and under which constraints. The two inform each other, but treating a forecast as a substitute for batch-level stock review leaves ageing and blocked quantities invisible.