In the logistics of foods and perishable items, two acronyms orient many of the decisions: FIFO and FEFO.
In operations that depend on the cold chain, these methods become even more critical, as any failure can compromise the quality, food safety and the commercial viability of the product.
This guide explains the concepts, the differences and the practical application of these strategies. See how to protect the quality of the perishable products and the financial result of their operation.
What are FIFO and FEFO in logistics?
FIFO and FEFO are methods of stock management to determine the correct order of leaving of the stored products. The central idea is simple: to organize the flow to reduce waste and guarantee efficiency.
Both start from the same objective: avoiding expiration and losses. The difference is in the criteria used to define which item should leave first.
Perishable food companies, restaurants, supermarkets and industries use these methods as a basis for control of the logistics. The proper choice improves the organization and ensures the quality for the end consumer.
FIFO (first in, first out)
The criterion here is the date of entry of the product in stock.
The functioning follows a chronological pattern. The older items, received earlier, have priority for dispatch. Recently arrived products remain stored until their turn arrives in the flow.
FIFO requires basic control of the dates of receiving and good physical organization of the stock. With identified shelves and a well defined flow, the process takes place almost automatically.
However, the method ignores an important point: the date of fabrication and the specific validity of each batch. In sectors very sensitive to time, such as that of perishables, this limitation may generate risks.
FEFO (first expired, first out)
With FEFO, the focus changes completely. Instead of observing the date of entry, the criterion becomes the date of validity.
Products with closer expiry dates are given the priority of sale or consumption, even if they have arrived after other batches.
This model is better adapted to fresh foods and highly perishable items. Yoghurts, meat, fruit and vegetables and ready meals are classic examples of this.
FEFO requires a higher level of operational control. The batches need clear and trackable identification, and the management systems become a central part of the process. As Moises Ventocilla, Engineering Director at Emergent Cold LatAm highlights, “when integrated with WMS systems, the monitoring can notify about products close to expiry or which have not been rotated properly.”
When applied well, the method drastically reduces disposal due to expiry and improves the customer experience. The consumer always receives the freshest product available.
The relationship between FIFO, FEFO and LIFO
Besides FIFO and FEFO, there is another method known in logistics: LIFO, the acronym for “last in, first out”.
In LIFO, the most recent product has priority for leaving. The logic goes against the basic principle of preservation of quality and usually increases losses.
The importance of the FIFO and FEFO methods in the control of foods
Perishable foods require redoubled care. Any error in warehousing can generate financial loss and/or damage to brand reputation.
FIFO and FEFO act as barriers against these problems.
The benefits appear on various fronts:
- Reduction of waste: products follow a logical order of leaving. The risk of expiry falls drastically.
- Greater food safety: the consumer receives items within the proper time, stored correctly.
- Better organization of the stock: clear processes facilitate the work of the team and reduce operational errors.
- Compliance with health standards: good warehousing practices attend to legal and audit requirements.
- More efficient financial control: lower losses mean healthier margins.
How to choose between FIFO and FEFO for warehousing?
The decision begins with the nature of the product.
Long validity and homogeneous items go well with FIFO. Examples include frozen foods, tinned products and high turnover drinks.
Products sensitive to time demand FEFO. Fruit and vegetables, dairy, meats and ready meals depend on these criteria to maintain quality.
Another decisive factor is the variation between batches. If two batches of the same product arrive with very different validities, applying FIFO may generate unnecessary losses. In this case, FEFO resolves the problem.
The volume of stock is also an influence. Small operations are able to apply FEFO manually. Larger companies need automated systems.
How to implement each method in the storage process?
The implementation begins with the physical organization.
In FIFO, position the older products at the front of the shelves. The ideal is to create corridors with defined flow and to train the team to replace goods always with the one behind.
Besides this, visual identification helps a great deal. Labels with date of entry and different colors facilitate the routine.
In FEFO, the control has to be more detailed. Each batch has to clearly show the date of validity. Management systems and data collectors make the process more secure.
Some practices are essential to both methods:
- Standardize the receiving of goods;
- Record the dates correctly;
- Do frequent stock takes;
- Train teams continuously;
- Adopt suitable rooms and areas to the type of product.
Discover our temperature-controlled storage solutions
Guaranteeing the quality of foods goes beyond choosing between FIFO and FEFO. A storage environment that maintains the ideal conditions of temperature and humidity is necessary, minimizing the risk of losses, variations in quality or early deterioration.
We offer complete temperature-controlled storage solutions designed for operations seeking logistical efficiency and compliance with rigorous health standards.
With modern infrastructure and continuous monitoring, we support your operation at every stage of the process, from receiving, passing through stock management, through to dispatch with the logistics method most suited to your mix of products.
