Concept and practical application of FIFO

In the warehouse, there is a principle of “first in first out”. As the name suggests, it refers to the goods with the same code “the earlier the goods enter the warehouse, the earlier going out of the warehouse”. Is that the cargo that enters the warehouse first, and it must be sent out first. Does this mean that the warehouse is only managed based on the receiving time of the goods and has nothing to do with the production date? Another concept is involved here, which is the shelf life of the product.

The shelf life usually refers to the period from manufacturing to expiration. In the warehouse management, the same SKU products will successively enter the warehouse with a new production date. Therefore, in order to avoid deteriorating products in the warehouse, when shipping, it will set priority to send out those products that enter the database early. From this, we can see the essence of advanced first, which is usually judged according to the time entry time, but now it has become judged by the shelf life of the product. In other words, the advanced out -out of the storage management, literally, is to first ship the goods that enter the warehouse first, but in essence, the goods that are closest to the expiration date first.

In fact, the concept of advanced first was born in the warehouse of the manufacturing company. At that time, there were not many products in the product. Each warehouse only received the products offline of the local factory. The principle of delivery is not a problem. However, with the gradual increase in product types and the further expansion of sales, some customers’ business has expanded to all parts of the country. Factions of various products have been established nationwide to save logistics costs. The warehouses that were originally served only for offline products, the functions became stronger and stronger, and became regional distribution centers (DC). The distribution center warehouse in each region starts the full -product layout. Not only the products that store local factories, they will also accept the arrival of other factories and other warehouses from the country. At this time, you will find that the goods that are allocated from other warehouses are the warehouses that enter later, but the production date may be earlier than some of the products in the existing inventory. At this time, if it is still literally, it is obviously meaningful to be shipped according to “advanced first”.

Therefore, in the modern warehouse management, the essence of “advanced first” is actually “failed first”, that is, we do not judge according to the time of entering the warehouse, but to judge based on the failure period of the product.

As the earliest domestic companies in China to study the 4D dense system, Nanjing 4D Smart Storage Equipment Co., Ltd. provides customers with increasingly optimized high -dense storage automation, information, and intelligent system solutions to customers. The company’s core equipment 4D shuttle can meet the requirements of “advanced first”. It adopts mechanical top -up, thin thickness, and intelligent program, which has achieved parameter debugging mode. After three years of research and development and 3 years of project implementation experience, there are nearly ten project cases in Nanjing Fourth, and most of them have been accepted, which provides a guarantee for the quality of the product.

In addition to the assistance on the equipment, the efficient system is also indispensable. In the WMS system, SKU management does not require variable attributes, and the encoding of inventory goods can be directly adopted by the SKU code. The advanced implementation of SKU management is implemented by the warehouse operation management of the warehouse. In addition, in the management of warehousing, it is necessary to set this principle in the system. The storage rules of the ranking are best to store only one code batch product in the same ranking. Regularly screen the products of the inventory according to the production date. For products that are about to expire (failure or stop sale), the detection and treatment should be done early.


Post time: Apr-26-2023

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