What is FIFO (First In, First Out)?
FIFO means that the products that come in first are also issued or processed first. This system ensures that stock is constantly refreshed.
Benefits of FIFO
- Prevents obsolete or spoilt products.
- Ideal for products with expiry dates.
- Easy to implement with FIFO flow racks.
When do you use FIFO?
- In food and beverages.
- In the pharmaceutical industry.
- In production companies that value quality and traceability.
What is LIFO (Last In, First Out)?
LIFO means that the last added products are issued first. This system is often used for goods that have no shelf-life risk or are stored in bulk.
Advantages of LIFO
- Efficient with stackable or bulk goods.
- Less handling for products without loss of quality.
- In certain accounting situations, LIFO can have tax advantages.
When do you use LIFO?
- With raw materials such as sand, gravel or metal parts.
- In situations where storage space is more important than product rotation.
FIFO or LIFO: which strategy suits you?
The choice depends on your products and business goals:
- You choose FIFO if you work with perishable or quality-sensitive goods.
- LIFO is chosen when you work with bulk or non-perishable products.
In practice, most companies apply FIFO because it better suits efficient warehouse management and quality control.
Multitube simplifies stock management
With Multitube's modular systems, you set up your warehouse based on the right inventory strategy. Think of:
- Flow racks for an efficient FIFO process.
- Flow racks for compact and orderly storage.
- Workstation equipment for a streamlined production environment.
Ready to optimise your inventory management?
Contact us today and find out how we can make your warehouse processes more efficient.