FIFO (First In, First Out)
FIFO is a stock rotation rule where goods that entered the warehouse first are shipped first. It stops older stock from sitting too long, deteriorating or becoming obsolete, and suits most general goods. Racking and slotting must support it, for instance with flow-through racks. For products with expiry dates, FEFO is usually a better fit than FIFO.
Related terms
- FEFO (First Expired, First Out)
FEFO is a stock rotation rule where goods with the nearest expiry date are shipped first, regardless of when they arrived.
- SKU (Stock Keeping Unit)
An SKU is the unique code for each item variant a warehouse manages, such as a combination of product, size, colour and pack.
- Warehouse Management System (WMS)
A WMS is software that runs warehouse operations: receiving, putaway to rack locations, order picking, packing and dispatch.