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Imagine you have a warehouse full of products with expiration dates and, as you know, some products must be sold before others to avoid spoilage.
How do you manage this process efficiently? This is where the FEFO method comes in. Would you like to know how it optimizes your inventory and improves product turnover?
What is the FEFO method?
The FEFO method, which stands for First Expired, First Out, is an inventory management technique that ensures that products with the earliest expiration date are the first to be sold or used.
It is a fundamental strategy for companies that handle perishable products, such as food, pharmaceuticals or cosmetics.
Unlike other methods such as FIFO (First In, First Out), which prioritizes the oldest products, the FEFO method focuses on expiration, not the length of time they have been stored. This is especially useful to avoid losses from products that become unusable before they are sold.
How does the FEFO method work?
The FEFO method is based on the premise that the products closest to their expiration date should be the first to leave the warehouse. To put it into practice, companies must have an inventory management system that allows them to record the expiration dates of each product clearly and accurately.
With this system, each time an order is placed or a sale is to be made, the management software selects the products with the closest expiration date first, which minimizes the risk of perishable products remaining in the warehouse without being sold on time.
Benefits of the FEFO method
Adopting the FEFO method not only improves warehouse efficiency, but also offers several key benefits:
Reduced shelf-life losses 2.
By prioritizing products with the closest expiration dates, FEFO ensures that products that are no longer fit for sale are not wasted. This is essential for sectors such as food, where products have strict expiration dates.
Improved inventory management
With more accurate control of best-before dates, companies can better manage their inventory and avoid overstocking products that will not be sold on time.
3. Increased customer satisfaction
When the freshest products reach the customer first, the shopping experience is improved. This is especially important in the food industry, where product freshness is a decisive factor for consumers.
How to implement the FEFO method?
To implement the FEFO method correctly, it is essential to have an effective inventory management system in place to record, track and update expiration dates for all products. Some key steps include:
1. Clear labeling of expiration dates.
Each product should be clearly labeled with its expiration date, preferably in a visible, easy-to-reference format.
2. Staff training
The warehouse management team must be well trained to understand and correctly apply the FEFO method. It is essential that everyone follows this procedure consistently.
3. Use of appropriate technology
The use of specialized software can facilitate the implementation of the FEFO method, as it allows real-time tracking of expiration dates and prioritization of sales or product usage based on proximity to expiration.
Conclusion
The FEFO method is an essential strategy for companies that manage perishable products. By prioritizing products that are close to their expiration date, you not only avoid waste, but also improve inventory turnover and customer satisfaction.
If you have not yet implemented this method in your company, now is the perfect time to start - don't let your products expire early and optimize your inventory with FEFO!
If you need help implementing an efficient management system in your logistics, don't hesitate to contact us at Amphora Logistics- we are here to help you improve your supply chain!