The verdict in three sentences
Manual ledgers let 4 to 6 % of stock value expire and cause repeated stockouts on fast-movers. Software with FEFO alerts (first expired, first out) drops that loss below 1 % and inventory counts from 2 days to 3 hours. For a pharmacy holding 25 million FCFA of stock, that means about 1 million FCFA recovered per year and stockout days cut by four.
Manual ledger vs FEFO software
A paper ledger sees neither approaching expiry dates nor reorder thresholds. The software watches every batch, alerts before expiry and triggers reorders at the right moment.
| Criterion | Manual ledger | FEFO software |
|---|---|---|
| Annual expiry loss | 4-6 % of stock | under 1 % |
| Stockout days / month | 12 | 3 |
| Inventory count time | 2 days | 3 hours |
| Pre-expiry alert | no | 30 / 60 / 90 d |
| Automatic reorder threshold | no | yes |
| Batch-level tracking | no | yes |
On a 25-million-FCFA stock, moving from 5 % to under 1 % loss keeps about 1 million FCFA a year in the till instead of the bin.
2026 costs and return on investment
| Item | 2026 range |
|---|---|
| Pharmacy module (stock + expiry) | 500,000 - 1,200,000 FCFA |
| Monthly subscription | 18,000 - 35,000 FCFA/mo |
| Typical stock value | 25,000,000 FCFA |
| Loss avoided / year | about 1,000,000 FCFA |
| Stockout days / month | 12 -> 3 |
| Inventory count time | 2 days -> 3 hours |
The software repays itself within a single year on avoided expiry alone, before counting revenue recovered on stockouts and inventory time cut fivefold.
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Mini case study
Mr. Otieno runs a pharmacy in Nairobi (Westlands) with 25 million FCFA of stock. With his ledgers, he lost 5 % a year to expiry, i.e. 1,250,000 FCFA. FEFO software brings that loss to 0.8 %, i.e. 200,000 FCFA: a saving of 1,050,000 FCFA/year. The module cost him 900,000 FCFA plus 28,000 FCFA/month (336,000 FCFA/year). From year one, net gain tops 700,000 FCFA, and stockouts fall from 12 to 3 days a month.
FAQ
What is the FEFO method? FEFO stands for "First Expired, First Out": the software dispenses batches with approaching expiry first. That's what drives loss below 1 % versus 4-6 % on a manual ledger.
How much does an average pharmacy recover? On a 25-million-FCFA stock, moving from 5 % to under 1 % expiry means about 1 million FCFA a year recovered.
Does the software cut stockouts? Yes: with automatic reorder thresholds, stockout days drop from 12 to 3 a month, avoiding lost sales on fast-moving products.
How long does inventory take? Inventory count time falls from 2 days to about 3 hours, since quantities and batches are already up to date in the system.
What does it cost in 2026? The pharmacy module costs 500,000 to 1,200,000 FCFA plus 18,000 to 35,000 FCFA/month subscription, repaid in under a year on avoided expiry.
Let's talk about your project. We set up your stock software with FEFO expiry alerts and automatic reorder thresholds. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
