What is FEFO?
FEFO (First Expired, First Out) is an inventory management method where the criterion for goods departure is the expiration date. Under this logic, the product that expires first must be the first to be dispatched, regardless of when it entered the warehouse. It is the standard and mandatory methodology for sensitive sectors such as food, beverages, cosmetics, and pharmaceuticals.
Why is FEFO critical for profitability?
The FEFO method directly impacts financial and operational results:
Waste Reduction
Minimizes losses from expired products (shrinkage), which represent a direct loss on the company's balance sheet.
Consumer Safety
Ensures that no item unfit for consumption or with reduced efficacy (in the case of pharmaceuticals) leaves the warehouse.
Legal Compliance
Essential for complying with food safety and pharmaceutical regulations.
Automation via WMS
Managing FEFO manually is impossible at scale. The WMS automates this control by recording the expiration date of each batch upon receipt. During picking, the system blocks the operator from collecting any batch other than the one closest to expiration, ensuring perfect stock rotation.