FEFO

FEFO stands for First Expired, First Out. It is an inventory management principle in which items with the earliest expiration dates are identified and used or sold before those with later expiry dates. The goal is to minimize waste and ensure product safety by prioritizing products that are closest to their expiration.

FEFO differs from FIFO (First In, First Out) in that FIFO uses the oldest received stock regardless of expiry, whereas FEFO prioritizes the earliest expiry dates. FEFO is especially relevant for perishable goods and items with limited shelf life, such as foods, beverages, pharmaceuticals, and certain cosmetics, where using or selling them in order of expiry helps maintain quality and compliance.

Implementation typically involves accurate labeling of expiration dates, batch or lot tracking, and organized storage or dedicated stock locations. Technology such as barcodes, RFID, and inventory management systems can automate expiry date sorting, alert when items near expiry, and guide warehouse picking and shelf replenishment. Regular cycle counts and quality checks help prevent mislabeling or misplacement.

Benefits of FEFO include reduced waste, improved product quality, and compliance with regulatory or safety requirements for perishable products. Challenges can include the need for precise date data, more complex stock control, potential inefficiencies if near-expiry items are not readily salable, and higher reliance on robust data and processes. FEFO is widely deployed in sectors with strict expiry considerations, such as groceries, healthcare, and logistics.