Why stock rotation procedure is important?

Stock rotation is the practice of managing inventory in a way that ensures that older items are sold before newer ones. This is important for several reasons:

* Prevents spoilage: For perishable items, stock rotation helps to ensure that items are sold before they spoil. This can save money and prevent food safety issues.

* Enhances quality: For non-perishable items, stock rotation helps to ensure that items are sold before they become outdated or damaged. This can enhance the quality of the products sold and increase customer satisfaction.

* Reduces shrinkage: Stock rotation can help to reduce shrinkage, which is the loss of inventory due to theft, damage, or spoilage. By ensuring that older items are sold first, businesses can reduce the risk of losing inventory.

* Improves cash flow: Stock rotation can help to improve cash flow by ensuring that inventory is sold quickly and converted into cash. This can help businesses to free up cash that can be used to invest in other areas of the business.

* Optimizes space utilization: Stock rotation can help to optimize space utilization by ensuring that older items are moved to the front of the shelf, where they are more likely to be sold. This can free up space for new inventory and improve the overall efficiency of the store.