First Expired First Out (FEFO)
What is First Expired First Out (FEFO)?
First Expired First Out (FEFO) is an inventory rotation method that ensures products with the nearest expiration dates are picked, shipped, or used before those with later expiration dates. Unlike methods based on when inventory was received, FEFO focuses specifically on product shelf life.
Why is First Expired First Out (FEFO) important?
Many products, particularly pharmaceuticals, vaccines, food, and healthcare supplies, have limited shelf lives. Besides helping to reduce product wastage, First Expired First Out (FEFO) helps maintain product quality and ensure customers receive items with sufficient remaining shelf life.
How does First Expired First Out (FEFO) work?
Inventory management systems track expiry dates for each batch or lot of product. When an order is processed, the system selects inventory with the earliest expiration date that is still suitable for use, helping to avoid a situation where a warehouse is left holding expired inventory.
Where is First Expired First Out (FEFO) commonly used?
First Expired First Out (FEFO) is widely used in life sciences and healthcare, food and beverage, cosmetics, and other industries where product quality and safety can be affected by age or expiration dates. It is particularly important in regulated supply chains that require strict inventory controls.
What benefits does First Expired First Out (FEFO) provide?
First Expired First Out (FEFO) helps minimize expired inventory, improve stock utilization, support regulatory compliance, and protect product quality. It also enhances inventory visibility and reduces the financial losses associated with product obsolescence and spoilage.
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