---
title: "Standard Implementation Rules for Distributors Handling Year-End Near-Expiry Products"
description: "As the year changes, sensitivity to product packaging dates increases, and distributors without operational experience may end up with excessive inventory or new products that become 'last year's' after New Year's Day, making them hard to sell. The author advises distributors to start compressing inventory from December, including both warehouse stock and older shelf stock, and to handle near-expiry products systematically."
author: "马兴强   赵波"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-11-16"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/standard-implementation-rules-for-distributors-handling-year-end-near-ex-4e7a235e/"
markdown: "https://xinjignxiao.com/en/articles/standard-implementation-rules-for-distributors-handling-year-end-near-ex-4e7a235e.md"
original_source: "https://mp.weixin.qq.com/s/Rp-QtLEN_6kLgZlCGRAHaw"
translation: "https://xinjignxiao.com/zh/articles/%E7%BB%8F%E9%94%80%E5%95%86%E8%B7%A8%E5%B9%B4%E5%8D%B3%E6%9C%9F%E5%93%81%E5%A4%84%E7%90%86%E6%A0%87%E5%87%86%E6%89%A7%E8%A1%8C%E8%A7%84%E8%8C%83-4e7a235e.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/standard-implementation-rules-for-distributors-handling-year-end-near-ex-4e7a235e/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Standard Implementation Rules for Distributors Handling Year-End Near-Expiry Products

> As the year changes, sensitivity to product packaging dates increases, and distributors without operational experience may end up with excessive inventory or new products that become 'last year's' after New Year's Day, making them hard to sell. The author advises distributors to start compressing inventory from December, including both warehouse stock and older shelf stock, and to handle near-expiry products systematically.

**Introduction**
Based on past experience, during the annual changeover, sensitivity to product packaging dates can easily amplify. Distributors without operational experience may have shipped too much at year-end, or have new products that have been on the market for only a short time. Once the New Year passes, all your stock becomes last year's products. After the Spring Festival, facing consumers who check dates on every purchase, these products are essentially considered old-date items, making it difficult to sell through at the terminal. The author suggests that distributor friends start considering how to compress inventory from December for 2016 products. Compressing inventory doesn't just mean warehouse stock; it also includes terminal stock with older shelf ages. Additionally, for newly launched products, shelf age is particularly important in the market. This also tests the distributor's market control ability.

**How to Handle?**

**1. Conduct Inventory Check in December, Including Terminal Stock Count.**
Before preparing to digest terminal inventory in advance, you must have a clear picture. Before handling, conduct a simple stock count of market inventory. The purpose is to know the overall terminal inventory, the general shelf age situation, and the inventory levels by region and shelf age. After the count, decide whether to recall and which date segments to recall. This way, you won't face issues like not being able to collect products or being overwhelmed by returns.
The count can typically be completed in about a week. It is recommended that distributors not skip this step unless they personally visit the market.

**2. Plan Recall in Stages and Phases**
After the count, have the clerk calculate the target quantities for each region and salesperson. With prior statistics, recall can be targeted. Based on the salesperson's reported inventory, recall products during regular route visits or concentrate over one or two days. Remember to recall by date and stage, according to your own digestion capacity.

**3. Standardize Storage and Handling**
**a. Store by Date and Category:**
After recall, the warehouse keeper should store products by date and mark them, prioritizing the handling of products with nearer expiry dates to avoid mixing. Near-expiry products should be stored separately, not mixed with new-date inventory, to prevent secondary market entry and customer complaints.
**b. Clean and Mark:**
Products may have worn or dirty packaging after display. The warehouse keeper should clean them upon return. Replace packaging if possible; if not, consider breaking bulk packaging into smaller packages. For example, for noodles, near-expiry products can be opened and placed into large bags. For dairy and protein drinks, replace with new box packaging supplied by the manufacturer.
**c. Mark Before Outbound:**
Before near-expiry products leave the warehouse again, mark them. For bagged products, cut a corner or punch a hole; for bottled products, use a permanent marker or pen to mark inconspicuous areas to avoid unnecessary waste from re-recall.

**4. Select Points for Handling, Use Flexible Methods**
**Select Points:** The preferred handling for near-expiry products is to place them in closed or semi-closed channels such as unit canteens, prisons, buffets, bars/KTVs, breakfast stalls, rural markets, and other non-mainstream channels. If the volume is large and the product is a fast-moving item (like yogurt), you can also handle it centrally in front of large supermarkets.
**Flexible Methods:** The handling method should be flexible based on the degree of near-expiry, always aiming to minimize losses. You can bundle with promotional items, buy-one-get-one-free, sell at 1 yuan, or sell by weight. Regardless, once products leave the warehouse, try not to bring them back.

**Avoid: Distributing as benefits, altering dates, mixing old and new stock**

**Summary:**

**1. At the operational level, companies should standardize the handling of old-date products:**
a. Set a unified recall standard for old-date products, with rewards and penalties, to encourage timely recall by sales staff.
b. Establish standard handling procedures and responsible persons. When near-expiry products enter the warehouse, the warehouse keeper should regularly warn the boss and sales manager, and assign responsible persons. In principle, the person who recalls should handle, but products must be returned to the warehouse before outbound handling; direct on-site digestion without warehousing is strictly prohibited.
c. Involve manufacturer personnel in handling near-expiry products and keep records to later claim handling resources and costs from the manufacturer. Generally, manufacturers, especially for candy, ham, milk, and bakery items, reserve about 5‰ of the cost for near-expiry handling, usually held by regional managers. Remember, the squeaky wheel gets the grease.

**2. In market operations, distributors should recognize:**
1. Reduce or control shipments in December.
Experienced distributors basically stop or reduce shipments in December for products without daily turnover. Many manufacturers turn a blind eye, but some require distributors to stock up to meet year-end rebates. In such cases, distributors must calculate carefully: what is the digestion capacity for winter products? Don't stock a warehouse full for a small year-end rebate. After all, these are cross-year products; once the year changes, they become hard to sell. You might even lose more than you gain, with rebates not covering the cost of handling near-expiry products.
2. New products past half their shelf life should be handled early.
Products with a one-year shelf life are usually shipped in May or June. By the terminal, their shelf age is no longer fresh, especially for new beverage products. If they cross the year, they may expire before the northern peak season next year. This means if you don't recall and handle them now, hoping to sell more on the shelf is basically futile. Recently, I encountered a large quantity of small-category products (grains, corn, mango, hawthorn flavors) from a coconut juice brand. The dates were from April or May, already near expiry. Such products, when the main brand isn't strong and many small SKUs are launched, inevitably lead to near-expiry or expiry. These small-category products should be recalled and handled as soon as they pass half their shelf life. Returning to the warehouse near expiry easily leads to expiration.
3. Handle products quickly; don't be afraid of losses.
Once products are in the warehouse, each day makes them harder to handle. Distributors shouldn't hesitate to sell at half price due to心疼. Many new products can't sell well even at half price, let alone near-expiry items. So, be decisive and quick. Don't let them linger in the warehouse. Although you lose a little, it's better than losing everything.

**3. In market and team management, distributors should:**
**Bosses should frequently visit the market. Warehouses must implement FIFO (First In, First Out). When selling, select points based on actual market conditions; don't scatter-shot. Develop the habit of checking inventory before delivering goods. Train staff in basic shelf display skills. Salesperson assessments should vary by season. Each sales manager should have a few strong relationships with high-volume stores that can help handle products in critical times.**

Milk, ham sausages, and instant noodles are relatively easier to handle, but beverages are a headache, especially walnut milk, coconut juice, lactic acid bacteria drinks, and some so-called small-category beverages. The harder they are to handle, the earlier distributors should address them. Ultimately, distributors must be cautious in product selection, diligent in distribution, frequent in market visits, and attentive to terminal service to minimize returns.


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671