Every partner who stocks medicines will, sooner or later, hold a pack that has expired or arrived damaged. What happens next depends on the company’s expiry and breakage policy, and the difference between policies can decide whether a slow month costs you a little or a lot.
This guide explains what expiry and breakage policies cover, the common types you will meet, what to get in writing, and how to order and store stock so that expired or damaged goods stay rare whatever the policy.
What the policy covers
- Expiry: products that reach their expiry date while still in your stock or your customers’ stock. Expired medicines must not be sold; they have to be returned or destroyed.
- Breakage and damage: packs that arrive broken, leaking or crushed, or that are damaged later in storage or transit.
- Short-dated stock: products that arrive with little time left before expiry.
A policy sets out what the company will accept back, within what time, and whether it gives a replacement, a credit note or nothing.
The common types of policy
| Policy | What it means for you |
|---|---|
| Full or partial returns | The company accepts expired or damaged goods back, usually within a time limit and with conditions, and gives credit or replacement |
| Replacement only | Damaged or expired packs are replaced with fresh stock, not credited |
| Damage on arrival only | Only goods damaged in transit and reported on delivery are covered |
| No claims accepted | The company accepts no expiry or breakage claims; the risk is yours, and is usually reflected in the price |
None of these is automatically better: a company that accepts no claims may offer prices that make up for it. What matters is that you know the policy before you order and plan for it.
Shelf life and short-dated stock
Every product has a printed expiry date, and the time left before that date is its remaining shelf life. Chemists generally prefer stock with plenty of shelf life remaining, because they also need time to sell it. Two habits help:
- Ask about remaining shelf life before you order, especially for slower products, and note it when the goods arrive.
- Plan quantities around shelf life, not only around price. A large order at a good price is a poor deal if part of it expires before it sells.
Products that sell seasonally, such as cough and cold syrups, need particular care: order them close to the season, in quantities you expect to clear.
What to get in writing
- Whether expiry claims are accepted, and the time limit before or after the expiry date.
- Whether breakage claims are accepted, and how quickly damage on arrival must be reported.
- The minimum remaining shelf life on goods you receive.
- Whether returns are settled by credit note, replacement or not at all.
- Who pays transport for returned goods.
A written policy avoids arguments later. Our 10 questions to ask before choosing a PCD company includes this in the full checklist.
How to avoid losses whatever the policy
Order what you can sell
The most effective protection is ordering quantities your doctors and chemists will actually use before expiry. Start with smaller quantities of new products, watch how fast each one moves, and reorder more often rather than buying in bulk.
Check stock on arrival
Open and count each delivery as soon as it arrives. Check for damage, leaks and crushed cartons, and note the batch numbers and expiry dates. Report any problem to the company and the transporter straight away, with photographs.
Store stock properly
Keep medicines off the floor, away from heat, damp and direct sunlight, and keep products that need refrigeration in a refrigerator. Damage in storage is rarely covered by any policy.
Sell the oldest stock first
Arrange shelves so that the batch with the earliest expiry is used first (first expiry, first out). Review your stock every month and push products that are getting close to expiry.
Keep records
Record batch numbers and expiry dates when stock arrives, and keep sales records. If you ever need to make a claim, or to show what happened to expired stock, the records will matter.
When a product does expire
Even with careful ordering, some stock will occasionally expire. Handle it properly:
- Remove it from saleable stock immediately and keep it separately, clearly marked as expired.
- Never sell or supply expired medicines.
- Record the product, batch, quantity and date in your stock records.
- Dispose of it correctly. Follow the rules that apply in your state for the disposal of expired medicines, and keep a record of how and when it was disposed of.
If you supply chemists, agree in advance how you will handle products that expire on their shelves, because they will ask.
How the policy affects your choice of company
The expiry and breakage policy is one term among many. When you compare companies, look at it alongside the price list, payment terms and dispatch reliability. A company that accepts returns may price its products higher to cover them; a company that accepts no claims may offer lower prices but expects you to manage your stock carefully. Decide which suits the way you work, and plan your orders accordingly.
Partners who keep orders modest, check every delivery and rotate stock monthly usually find that expiry and breakage losses stay small whatever the policy.
Working with Ancare Life Sciences
At Ancare Life Sciences, Panchkula, expiry and breakage claims are not accepted, as stated in our trade terms. We recommend ordering in quantities you can sell comfortably and building up as your prescriptions grow; the price list and the other terms are confirmed in writing before you start. See what a PCD pharma franchise costs for help planning your first order, or contact us with your questions.