FIFO, or First In First Out warehouse storage, is a method of inventory control where the items that come into the warehouse first are among the first items to leave the warehouse, comparable to the service industry notion of “first come, first served.” The First In First Out methodology focuses primarily on products instead of people.
The logic behind FIFO is pretty straightforward – any items that are received first are the items a warehouse has had the longest and are closest to their expiration date or nearly obsolete. Business owners will move these items right away before they can no longer be sold.
FIFO Warehouse Storage
There are pallet racking systems available specifically for the management of FIFO products. Gravity flow racking systems, also known as pallet flow rack systems, allow goods to be fed into one end of the rack and retrieved from the other end when needed.
The following workflow is used:
• Pallets are fed into the back of a pallet flow rack system with the help of a forklift.
• Pallets are pulled toward the other end of the rack system through gravity.
• Pallets are unloaded by a forklift once they reach the opposite end.
FIFO first in, first out on pallet flow racks
Pallet flow rack systems have a variety of benefits besides FIFO inventory control. They include:
- Increased Warehouse Space
Goods can be packed more compactly to free up extra floor space in the warehouse. - Warehouse Operations are More Streamlined
With only two free aisles needed on both the unloading and loading side, warehouse operations become more streamlined, which improves the efficiency. - Keeps Stock Handling to a Minimum
Once the pallets are loaded, they aren’t handled again until the unloading process. This eliminates the need of manually rotating inventory and moving pallets. - Enhanced Quality Control
When the oldest products are chosen for distribution, this provides an improved experience for the customers, as they will receive consistent products whenever they order from you, thus making it easier to implement their own First In First Out inventory management solution. The number of incidents will also be reduced, as the goods customers receive will not be obsolete items that weren’t rotated properly while still in the warehouse. - Warranty Control
FIFO is especially important if the products you have in your warehouse still have a valid warranty according to the manufacturer’s data. This guarantees that the warranty will still be good long after the customer receives the products, which will save money on quality control for products that are shipped past or close to the warranty’s expiration date.
If you want to enhance the overall performance of your warehouse as well as improve customer service, reduce waste, and transform your warehouse operations, First In First Out inventory may work well for you. For many companies, a wide variety of benefits makes it a wise solution.
Contact us today to learn more about how our FIFO solutions can be customized to your specific warehouse storage needs.
