Beginner's Guide to Implementing FEFO in Your Warehouse

Implementing FEFO (First Expired, First Out) in a warehouse is a high-impact, practical step to reduce waste and improve product quality for time-sensitive goods. For beginners, FEFO may sound technical, but it boils down to three actions: capture accurate expiry data, configure processes and systems to prioritize earliest expiry, and arrange your physical space so staff can follow the rules easily.

This beginner's guide walks through key steps, simple examples, and friendly tips to get FEFO working in your operation.

Step 1: Capture expiry data at receipt

• Inspect labeling: At intake, check every pallet, case, or unit for a clear expiry or best-before date. If the date is missing or illegible, quarantine the item and contact the supplier.
• Record data digitally: Use barcode or RFID scanning to capture expiry dates into your WMS or inventory system. Manual logbooks invite error—digital capture reduces mistakes and speeds access to expiry information.
• Standardize formats: Agree on a date format (e.g., YYYY-MM-DD) and ensure staff and suppliers use it consistently.

Step 2: Implement lot and batch tracking

• Associate expiry with lots: Link expiry dates to lot or batch numbers during receiving. This allows the system to pick by expiry while preserving traceability.
• Label clearly: Affix lot and expiry labels to pallets and cases in readable locations. Encourage suppliers to provide barcode labels that encode expiry and lot data.

Step 3: Configure picking rules in your WMS or inventory system

• Set FEFO as the default rotation: In system pick logic, prioritize items with the earliest expiry date within the same SKU, regardless of receipt date.
• Automate alerts: Configure notifications for items that will expire soon (e.g., within 30 days) so you can trigger promotions, transfers, or returns.
• Support overrides with controls: If manual overrides are needed, require supervisor approval and record the reason to maintain auditability.

Step 4: Design warehouse layout for FEFO

• Dedicated pick faces: Create picking faces or lanes where items are stored by expiry date—closest expiry at the front. Flow-through racking or FIFO lanes often work well for FEFO.
• Segregation for short-dated items: Reserve a zone for near-expiry stock where pickers know to prioritize items and marketing can access them for promotions.
• Clear signage and labeling: Use visible labels that show expiry date and lot number at the bin or pallet level.

Step 5: Train staff and create standard operating procedures (SOPs)

• Teach the WHY: Explain the reasons behind FEFO—customer safety, reduced waste, regulatory compliance—so staff understand its importance.
• Hands-on training: Walk pickers through real scenarios where expiry dates differ from receipt dates, and practice using scanners to confirm the correct lot.
• Document SOPs: Provide simple, step-by-step procedures for receiving, labeling, picking, and handling exceptions like mixed-expiry shipments.

Step 6: Handle exceptions and problem cases

• Mixed-expiry shipments: If a case or pallet contains mixed expiries, separate them during receiving and re-label as needed. Consider rejecting such shipments if they cause significant handling burdens.
• Short-dated overstock: Use promotions, donations, transfers, or returns to clear short-dated inventory. Track these actions so planners adjust future orders.
• System gaps: If your current WMS can’t enforce FEFO by expiry, create interim manual checks with barcode scans and visual cues while planning an upgrade.

Step 7: Monitor performance and continuous improvement

• Track expiry-related KPIs: Monitor metrics like expired units, write-offs, short-dated inventory percentage, and on-time shipments of fresh stock.
• Root cause analysis: If you see recurring expiries, audit receiving, forecasting, and procurement practices to correct the underlying cause.
• Cross-functional feedback: Involve procurement, quality, marketing, and sales in reviewing near-expiry strategies and adjusting ordering or promotion plans.

Simple FEFO implementation checklist for beginners:

1. Confirm expiry labeling and date format standards with suppliers.
2. Enable lot and expiry capture at receiving via barcode scanning.
3. Configure WMS pick logic to prioritize earliest expiry per SKU.
4. Arrange pick faces and reserve zones for short-dated stock.
5. Train staff with practical exercises and publish SOPs.
6. Set alerts for soon-to-expire items and define clearance actions.
7. Track KPIs and review regularly for improvements.

Real-world tip: A small food distributor I worked with reduced wasted inventory by 30% in six months simply by fixing expiration date capture at receiving and reconfiguring their picking logic in the WMS. The implementation was low-cost—training, labeling, and a few configuration changes—but the impact on margins was immediate.

Start small: you can pilot FEFO in one product category or a single warehouse zone to validate processes, train the team, and measure results before rolling it out enterprise-wide. FEFO is both intuitive and highly practical: with a few disciplined steps, it quickly becomes part of routine operations and delivers measurable benefits.