The way the warehouse is organized, the training of the employees operating it, and even the tools and systems used in it - all these issues are important from the point of view of the smooth flow of goods. However, the way they are spent is no less important. Here we can encounter several concepts that determine the order in which specific batches of stored products leave the storage site. Selecting the optimal method for the specific nature of the business and the nature of the orders being performed, as well as consistent use of this method, is a simple way to optimize work and increase efficiency. Therefore, it is worth familiarizing yourself with at least the three most common techniques and their applications. What is FIFO, LIFO and FEFO? The answer to this question is below!
Why does the choice of a goods storage concept matter?
Each product category requires storage in conditions appropriate to its specificity, but some goods are more demanding than others. For example, when storing fresh food, such as fruit, vegetables or fresh herbs, it is necessary to ensure that they are released and delivered to the recipient before they lose their freshness. - speed and efficiency are absolutely key here. The issue of storing products with a long expiry date, for example, is different spice distributor or juices may pay more attention to other aspects of warehouse operation and look for improvements there. Choosing a specific storage concept facilitates warehouse planning and organization, which translates into more efficient delivery.
FIFO principle – what is it?
FIFO – definition
FIFO (First In, First Out) is a storage concept that involves issuing goods from the warehouse in the order they are received. This means that articles accepted first are at the front of the queue for publication.
Application
The purpose of applying the FIFO principle is to avoid a situation in which older batches of products remain in stock for too long. This approach means that the stored assortment is constantly replaced and updated.
LIFO principle – what is it?
LIFO – definition
Using the LIFO (Last In, First Out) concept, goods are released from the warehouse in the reverse order of their receipt. This means that the goods that were received last are released first.
Application
This storage method has quite limited application as it may result in long-term storage of batches of products before they are released. For this reason, it only works for goods whose quality does not decline over time.
FEFO principle – what is it?
FEFO – definition
FEFO (First Expired, First Out) is a concept based on the expiration date of stored goods. When using this storage method, batches of products with the shortest expiry date should be prepared first for release, regardless of the order in which they were received into the warehouse.
Application
This is a storage technique commonly used in the food industry, especially in the case of fresh products. It allows you to control the quality of goods in the warehouse and avoid their expiration.
How to choose the right storage concept for your warehouse?
Each of the storage concepts discussed above has its own characteristics suitable for different types of goods. The first step in choosing the right warehouse operation method should be to determine the type of goods that will be stored. On this basis, it will be possible to select the optimal technique to maintain product quality and improve warehouse operation, and thus maximize profits and minimize losses.
The length of the storage period may be as important for food products as the conditions in which they are stored. When ordering wholesale quantities of goods, it is worth choosing a distributor who is able to guarantee proper preparation and operation of its warehouses.
