What is FIFO?
FIFO (First In, First Out) is the inventory management methodology where items that entered the warehouse first are the first to be sold or used. It is the ideal method to prevent products from becoming obsolete, gathering dust, or suffering packaging deterioration due to prolonged storage.
Practical Applications
It is widely used in fashion, electronics, and durable consumer goods sectors, where constant stock rotation is necessary to keep shelves updated with the latest collections or models.
Difference between FIFO and FEFO in WMS
While FEFO looks at expiration dates, FIFO looks at the receipt date. In the WMS, this translates to location strategies:
FIFO
Based on receipt date (warehouse entry)
FEFO
Based on product expiration date
The system directs the operator to the oldest pallet in the warehouse. This prevents "hidden stock" at the back of shelves, something very common in warehouses managed without software.