What is the FEFO principle?

Large-format stores have it that at any one time there are many of the same products in the various departments. Analysts in the warehousing industry have therefore identified three basic principles for storing goods so as to optimize their quality and shelf life. They are FIFO, LIFO and FEFO. The most complex and also the most widely used in the food industry is the FEFO principle.

Definition of the FEFO principle

To learn the meaning of this method and to find out what FEFO is, it is useful to first decipher the acronym. The FEFO method, which means "first expired, first out" in direct translation, means "firstexpired, first out." This technique is primarily used in places that offer products with a short shelf life. It is used in warehouses or directly on the shelves of mostly large-format stores. The idea is to maximize the use of product resources and minimize expiration losses. This is what efficient FEFO logistics is all about.

Principle of FEFO

 Stacking products according to the FEFO principle allows the warehouse to efficiently issue goods that should already be sold, since they will soon expire. Great emphasis is placed here on selectivity and ergonomics of product stacking. According  tothe FEFO technique, a warehouse operating in this way will arrange products with expiration dates so that they can be released to the store as soon as possible. A good example  ofFEFO queuing might be dairy products in a store. Well, it is arranged in such a way that the goods with the shortest shelf life are at the very front of the display. The customer will reach just for them, and merchandiser or other person taking care of the display of goods will move the next ones to that place. At the back will be set those products that have the longest expiration date, because they still have time to buy. A warehouse using FEFO is able to dispense goods very efficiently, and they will quickly disappear from store shelves. There it will be replenished according to the same principle. This is an extension of FEFO. If this principle works in cooperation between the store and the warehouse, it allows to significantly increase sales efficiency. Keeping in mind the basic principles of merchandising, you can count on an effective increase in sales profits by up to several tens of percent, and at the same time minimize losses associated with the need to remove expired products. Applying the principles of FEFO allows you to coordinate the entire path of the product from the moment it reaches the warehouse.