An inventory rotation method that prioritizes shipping products with the earliest expiration dates first, regardless of when they arrived at the warehouse. This strategy ensures that perishable goods move through the supply chain before they spoil or become unsellable, minimizing waste and maximizing product value.
FEFO is critical for businesses handling food, pharmaceuticals, cosmetics, and other time-sensitive products where expiration dates directly impact product viability and regulatory compliance. Unlike FIFO (First In, First Out), which focuses on arrival sequence, FEFO specifically targets expiration chronology to prevent inventory obsolescence.
For example, if a pharmacy receives a shipment of vaccines expiring in March after already having vaccines expiring in February, FEFO logic would prioritize shipping the February-expiring vaccines first, even though they arrived earlier. Modern WMS platforms automate FEFO selection during picking operations, significantly reducing manual date-checking and human error while ensuring optimal inventory turnover.
