First-in-first-out is one of the most basic rules in inventory management. For products with a shelf life in particular, whether you can keep to it directly affects waste and quality. Here is a guide to its meaning, benefits, and how to enforce it on the floor.
What is first-in-first-out (FIFO)?
First-in-first-out (FIFO) means shipping or using the stock that arrived earliest, first.
When the same product sits on a shelf, you sell or use the oldest received batch first. Newly received items go to the back, and the older items at the front go out first — that is the essence of FIFO.
| Method | Meaning |
|---|---|
| First-in-first-out (FIFO) | What goes in first comes out first |
| Last-in-first-out (LIFO) | What goes in last comes out first |
In real-world stock operations, FIFO is almost always the default (so that old stock isn’t left behind).
Benefits of FIFO
- Quality retention: old stock doesn’t linger, preventing deterioration and obsolescence.
- Less waste: you use items up before they expire. → What is expiry date management
- Stable freshness: because the oldest is always consumed first, stock condition stays consistent.
Enforcing FIFO on the floor
- Smart placement: replenish new stock from the back (or bottom) and present older stock at the front (or top).
- Show received date and expiry: label boxes with the received date and expiry so it’s clear at a glance which is older.
- Distinguish by lot and date: separate the same product by lot or date and draw from the oldest lot. → What is lot management
Relying on physical placement alone tends to break down during busy periods. It helps to have a system that also supports “draw down the oldest stock first” in your data.
FIFO in an inventory management system
In the cloud inventory management system “KURAPRO,” enabling lot and expiry as stock fields gives you the management that supports FIFO.
- You can see stock separated by lot and expiry even for the same product.
- Because you know how much remains for each date and lot, it’s easier to decide to ship the oldest first.
- Expired stock also appears in stock alerts, preventing forgotten items.
For details, see Stock fields (location, lot, expiry) in the user guide.
Summary
- FIFO means what goes in first comes out first.
- Its benefits are quality retention, less waste, and stable freshness.
- An inventory management system that distinguishes stock by date and lot makes it easier to enforce.
With KURAPRO, you can manage stock by lot and expiry using nothing but your smartphone’s barcode scanner. Try it now on the free plan.
