.png)
FIFO (First In, First Out) is an inventory management method where the oldest inventory items are sold or used first, ensuring that products do not expire or become obsolete while newer inventory is left for later use.
FIFO is a strategy used in inventory management to maintain product freshness and prevent stock from becoming outdated. This method helps businesses keep their operations efficient by reducing the chances of product spoilage and loss. FIFO is widely used in industries like food, pharmaceuticals, and retail where products have a limited shelf life.
Implementing FIFO means that your business will prioritize using older products before newer ones, which reduces the risk of waste from expired goods. This method helps keep your inventory organized and can lower costs associated with unsellable products.
By using FIFO, your business can improve customer satisfaction, as customers will always receive the freshest products available, leading to better customer retention and fewer returns.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
FIFO is crucial because it ensures that older stock is used or sold before newer stock, minimizing the risk of unsellable or expired products. This method can help companies maintain profitability, reduce waste, and improve customer satisfaction by providing fresh products.
For example, in a grocery retail store, perishable items like milk are stocked according to the FIFO method to ensure that older products are sold before new deliveries. This reduces the chances of spoilage and ensures customers always receive fresh goods.
