First-In, First-Out (FIFO): Keep Stock Fresh
FIFO ensures the oldest inventory gets sold or used first. It's especially critical for perishable goods, pharmaceuticals, or fashion items where shelf life or relevance is key. Implementing FIFO prevents inventory obsolescence and reduces waste. Warehouses can support FIFO by organizing storage layouts to make older stock more accessible. FIFO also aligns with financial reporting in many regions, making it a compliance-friendly strategy. With proper training and system support, FIFO can lead to better inventory rotation and cost savings.