First In First Out Stock in Cambodia: A Simple Rule for Selling Older Items First
First in first out stock in Cambodia shops comes down to one simple rule: the first items you receive should be the first items you sell. It sounds obvious, and most owners agree with it. But on a busy day, with a new delivery to put away and customers waiting, the easy thing is to put the new boxes at the front and leave the old ones behind. A month later, the old ones are still there, past their best, and nobody wants them.
This rule is often called FIFO, short for “first in, first out.” It costs nothing, needs no equipment, and can save a surprising amount of money. This guide shows how to make it a habit in your shop.
Why FIFO Matters
1. Items go out of date Food, drinks, cosmetics, and medicines have dates after which they can’t be sold. An old item at the back of a shelf may expire before it ever reaches a customer.
2. Items get damaged or worn Packaging fades, boxes get crushed, and items that sit for months look tired. Customers choose the fresh one, and the old one stays.
3. Styles and prices change In fashion and gadgets, an item bought long ago may be out of fashion or priced above the market. Selling it early recovers more of what you paid.
4. Old stock hides problems When old stock sits unseen, you don’t notice a product that isn’t selling until it’s too late. Rotating it keeps the problem visible.
A Note on Expiry Dates
For items with an expiry date, shops often use a slightly different rule: first expiry, first out. Sell the item that will expire soonest, even if it arrived later. Look at the date on the item, not only when you received it.
How to Practice FIFO, Step by Step
1. Put new stock behind or beneath old stock When a delivery arrives, don’t just fill the front of the shelf. Pull the old items forward, put the new ones behind them, and then fill the front.
2. Date your deliveries Mark boxes or shelves with the date received, using a pen or a simple label. It takes seconds, and it tells you at a glance what’s oldest.
3. Check dates regularly Once a week, walk through your shelves and look at dates, especially for food, drinks, and cosmetics. Move anything close to its date to the front.
4. Keep your storeroom organized Store items so that the oldest are the easiest to reach. A messy storeroom is where FIFO breaks down.
5. Teach everyone the rule Anyone who unpacks stock must follow it. One person who ignores it can undo a week of careful work.
6. Make it part of restocking Don’t treat rotation as a separate job. Build it into the moment you restock, so it happens automatically.
What to Do With Stock That’s Getting Old
Even with good habits, some items will get close to the end. Act early:
- Move it to the front so customers see it first
- Lower the price while it still has value, which is better than losing it all later
- Offer it with a popular item at a price you set
- Ask your supplier whether they take back or exchange old stock
- Write it off if it can’t be sold, and record it as a stock adjustment, so your records match your shelves. For how a write-off affects your accounts or taxes, ask a qualified accountant.
Our post on dead stock goes into what to do with items that have stopped selling.
How a POS Helps
FIFO is mainly a shelf habit, but your POS makes it easier to follow:
1. Know what sells slowly Reports show sales by item and can be filtered by date. Items that sell slowly are the ones most likely to get old, so check them first. Our post on finding your best selling products shows how to read these reports.
2. Keep your stock count accurate Every sale updates your stock, and you can run inventory counts and stock adjustments. When your count and your shelf disagree, you can look into why.
3. Record write-offs When you remove expired or damaged items, record them as stock adjustments, so your numbers stay honest.
4. Order smaller amounts Once you know how fast an item really sells, you can buy amounts that sell before they age, which is the best way to avoid old stock.
A Simple Weekly FIFO Routine
Once a week, in about 15 minutes:
- Walk through the shelves and check dates on food, drinks, and cosmetics.
- Pull older items to the front.
- Check your sales report for items that sold very little this week.
- Decide what to move, discount, or stop reordering.
- Record anything you removed as a stock adjustment.
Quick Comparison
| No Rotation | FIFO Habit | |
|---|---|---|
| New deliveries | Put at the front | Put behind older stock |
| Old items | Forgotten at the back | Sold first |
| Date checks | When someone notices | Weekly routine |
| Waste | Found at the end | Reduced early |
| Slow items | Hidden | Visible in reports |
| Write-offs | Thrown away with no record | Recorded as stock adjustments |
Getting Started
You can start today with a pen and a shelf. To make it easier to see what’s slow and keep your stock counts accurate, add a POS. Most MyLekha customers load their catalogue and start selling within a day. See everything the system includes on our features page, or check current plans on the pricing page.
FAQ
What does FIFO mean? FIFO means “first in, first out.” The first items you receive should be the first you sell.
Is FIFO only for food shops? No. It helps any shop with items that can expire, get damaged, or go out of fashion, including cosmetics, clothing, and gadgets.
What’s the difference between FIFO and first expiry, first out? FIFO sells items in the order they arrived. For items with expiry dates, it’s safer to sell the one that expires soonest, whenever it arrived.
How do I record items I had to throw away? Record them as a stock adjustment, so your stock matches what you really have.
How do I know which items are at risk of getting old? Look at your sales by item report. Items that sell slowly are the ones most likely to sit on the shelf.
Ready to See What’s Selling and What’s Sitting?
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