First in First out (FIFO)
The FIFO principle is an important method in warehouse and inventory management. It ensures the freshness and quality of goods. FIFO is particularly important for perishable products such as food or pharmaceuticals.
The FIFO process ensures that older stock is used up first. Only after older stock has been consumed or delivered is it the turn of newer stock. With the LIFO process (last in first out), it is the other way round.
By applying the FIFO principle, optimum stock rotation can be ensured. This is not only important for the quality of the products, but also minimises the risk of obsolete or expiring stock. Ultimately, less waste is produced and costs can be saved. The integration of FIFO into material flow planning makes work easier and contributes to a smooth operational process.
Modular workstation systems can be specially customised to efficiently support the FIFO method. Modern digital assistance systems offer additional support by showing employees which stocks need to be picked first. This helps to prevent errors and ensure compliance with quality standards.