FIFO and FEFO: Aging Strategies in the Warehouse

If goods are aging in your warehouse, you're losing two things at once: money (aged goods sell at a lower price or get thrown away) and customer trust (customers don't want to receive a product nearing its expiry). FIFO and FEFO are two different aging strategies designed precisely to prevent these two losses.

01. What Is FIFO (First In, First Out)?

The FIFO rule is simple: whatever enters the warehouse first, leaves first. If a product line has three different lots, the oldest-dated lot appears first on the pick list.

FIFO is ideal for products that have no expiry date but carry a freshness / obsolescence risk: electronic parts, packaging materials, textile collections.

02. What Is FEFO (First Expired, First Out)?

FEFO says "the one expiring first, leaves first." For products where the expiry date is critical (food, pharmaceuticals, cosmetics, food supplements), FEFO is preferred.

In FEFO, the expiry date — not the entry date — is decisive. A lot that entered the warehouse today but is nearing its expiry at month-end leaves before a lot that entered a week ago but is dated six months out.

03. How Does a WMS Enforce This Rule?

A modern WMS applies the FIFO / FEFO rule not as a "wish" but as "operational enforcement":

• The lot that should leave first is clearly marked on the pick list
• The handheld terminal warns when a different lot is scanned
• The rule can't be overridden without manager approval

This way, the rule defined on paper doesn't fail to reach the field; it depends on the system, not on the team's motivation.

04. Mixed Strategies

In some industries a single strategy isn't enough. For example, a food distributor:

• FIFO for standard products
• FEFO for products near expiry
• Manual priority for products held for promotional purposes

A good WMS can run these three modes in parallel in the same warehouse. The more flexible the rule layer, the better it answers the warehouse's real complexity.