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How "First in First Out" technique helps in controlling inventory? what are the steps need to be taken for successful implementation?

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Question added by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves
Date Posted: 2016/03/29
Tamer Elbably
by Tamer Elbably , Supply Chain Manager II , PPG Corporation

FIFO is critical for perishable products or products that have very short life cycle due to market.Of course you need to get rid of old stock first.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

First-in, first-out” is an important principle of inventory management. It means that your oldest stock (first-in) gets sold first (first-out), not your newest stock. This is particularly important for perishable products so you don’t end up with unsellable spoilage.

It’s also a good idea to practice FIFO for non-perishable products. If the same boxes are always sitting at the back, they’re more likely to get worn out. Plus, packaging design and features often change over time. You don’t want to end up with something obsolete that you can’t sell.

In order to manage a FIFO system, you’ll need an organized warehouse. This typically means adding new products from the back, or otherwise making sure old product stays at the front. If you’re working with a warehousing and fulfillment company they probably do this already, but it's a good idea to call them to confirm.

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