FIFO, which stands for First In, First Out, is a widely used inventory management principle where the oldest stock is used or sold before the newer stock. This system is especially critical in industries dealing with perishable or time-sensitive products, such as food, pharmaceuticals, chemicals, and cosmetics. The primary goal of FIFO is to ensure product freshness, minimize waste, and maintain accurate inventory rotation.
To effectively implement FIFO in a warehouse or storage facility, companies often use FIFO racking systems, also known as flow-through shelving or gravity flow racks. These shelves are designed in a way that products are loaded from the rear and picked from the front. The shelving is slightly tilted downward so that items naturally slide forward as one is removed, ensuring that the first item loaded is the first item picked.
FIFO shelving systems help increase efficiency and reduce the risk of outdated or expired products accumulating in storage. They are particularly useful in high-volume environments where fast stock turnover is necessary. These systems also minimize manual handling and reduce picking errors, leading to better productivity and safer operations.
There are different types of FIFO shelving, including carton flow racks for smaller items and pallet flow racking for larger, bulk products. The choice of system depends on product type, size, weight, and turnover rate.
By using FIFO shelving, businesses can maintain better inventory control, meet regulatory standards, and improve customer satisfaction by consistently delivering fresh, quality goods.
Post time: Jun-04-2025