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What is the FIFO (First-In-First-Out)Warehouse Management Method

The FIFO (First-In-First-Out) warehouse management method along with the LIFO (Last-In-First-Out) method is a tool that is widely used in warehouse management.

The operation of the FIFO method has to do with how the goods are moved and it is a simple concept, first in first out meaning that the first good to enter the warehouse is the first one out.

Specific industrial racking systems are designed for this method such as selective pallet racking.

When is the FIFO method used

The FIFO method is typically used to manage perishable products with an expiry date such as food items, medicine and cosmetics. 

It is also a common storage method for items that will go out of style quickly such as fashion items, electronics and footwear. the ultimate goal for the FIFO method is quick turnover, giving priority to the items that have been stored the longest or become spoiled with time.

Benefits and Advantages of the FIFO Method

Using a FIFO method in your warehouse has the below benefits and advantages:

  • Perfect Stock Turnover: This ensures that the first item to enter the pallet racking system is the first one out.
  • Priority of Items: Priority is assigned to the items that have been stored the longest or the ones with the earliest expiry date
  • Prevents Loss of Value: This method prevents and minimizes loss of value for items that have expired due to their date of manufacture.

Which Racking Systems Allow For FIFO Method?

The below racking systems allow for the FIFO method to be utilized:

  • Selective Racking: The selective racking that provides access to all pallets allows for the FIFO method to be implemented.
  • Drive-Through Racking: The drive-through racking that allows the forklift driver to enter the aisles for both ends, allows for the FIFO method to be utilized. The warehouse density is reduced due to the addition space required but this allows for the FIFO methos to be utilized.
  • Automated Shuttle Racking: In order for the FIFO method to be utilized in the automated shuttle racking, goods need to be loaded on one side of the rack and unloaded on the other side.

If you require assistance if a FIFO or LIFO method and which racking system is best to be utilized in your warehouse, please free to contact us on sales@ayoubi.com