Module 13 · Safety + compliance

Dangerous Goods, Scrap & Expiry Control

Dangerous goods handling, storage segregation, HAZMAT documentation, scrap disposal, expiry stock management, FEFO/FIFO and compliance checks.

Course reading

Understand the process

Part 1

Treat safety and shelf life as stock properties

Dangerous goods need appropriate identification, documents, handling and storage segregation according to the product and local rules. Expiring material needs a recorded batch and expiry date at receipt, otherwise a later picker cannot reliably choose safe stock. FEFO means first-expiring, first-out; FIFO means first-in, first-out. They are different rules.

A newly received batch might expire earlier than an older batch. FIFO would pick the older receipt, while FEFO would pick the earlier expiry. For shelf-life-controlled items, check both the remaining life required by the customer and the system's batch data before release.

Part 2

Stop unsuitable stock from moving

Quarantine damaged, expired or suspect items in a clearly identified location and blocked system status. Record what happened, who approved the disposition and whether the goods will be returned, reworked or scrapped. For hazardous material, follow the approved safety data and disposal procedure rather than applying a general stock rule.

Trace one batch from purchase order and receipt through its bin and issue. If an expired batch reached production, fixing the physical shelf alone is insufficient: check receipt capture, expiry alerts, picking sequence and release controls so the same failure cannot recur.

What you must take away

Dangerous goods need segregation, correct labelling and a safety data sheet available at the storage point.
FEFO beats FIFO whenever the material has an expiry date.
Scrap needs a documented approval and disposal route, not just an empty bin.

In the SAP process

Maintain the dangerous goods indicator and hazard classification on the material master.
Manage shelf-life items with batches and expiry dates so FEFO picking can be enforced.
Post scrap with the correct movement type, reason code and approval reference.

Case study

Expiry found at the customer, not in the store

Setting. A store holding adhesives and chemicals with shelf lives from three to eighteen months.

Problem. Expired material reached the line and one batch reached a customer, triggering a complaint and a recall check.

How it was investigated

Checked whether expiry dates were captured at goods receipt — many were blank.
Found picking was by nearest bin, not by earliest expiry.
Found no routine report of stock expiring within 90 days.

What was changed

Made batch and expiry entry mandatory at goods receipt for shelf-life materials.
Enforced FEFO picking and marked short-dated bins with a coloured tag.
Added a weekly 90-day expiry report reviewed by the store and planning together.

Outcome. Expiry became a planned write-off decision taken weeks early, instead of a customer complaint.

Lesson: If expiry is not captured at receipt, it cannot be controlled anywhere downstream.

Illustrative composite of common shop-floor situations — no client names or confidential figures.

Practical template

Shelf-life and hazardous storage register

Control expiry and segregation in one review sheet.

Material	Batch	Expiry	Days to expiry	Hazard class	Storage zone	Segregation OK?	Action
MAT-3390	B-2231	30 Jun	72	Class 3	Flammables cage	Yes	Consume first — FEFO tag

How to use it

Review everything under 90 days weekly; under 30 days needs a written decision.
Check segregation against your local regulation, not against habit.
Keep safety data sheets at the storage point and in the file — both are checked.

Download workbook & KPI template (PDF)

Quick quiz — check your understanding

1. An SDS (Safety Data Sheet) explains:
2. FEFO is used mainly for:
3. Expired stock should be:
4. Scrap must be recorded in the system to:
5. Dangerous goods labels show:

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