Common FEFO Mistakes and Best Practices

FEFO (First Expired, First Out) is a powerful method for managing time-sensitive inventory, but it can be undermined by avoidable mistakes. This article identifies frequent FEFO errors and presents beginner-friendly best practices to keep a rotation strategy effective, accurate, and low-stress.

Common FEFO mistakes

• Inaccurate or missing expiration data: If expiry dates or lot numbers aren’t recorded correctly at receiving, FEFO can’t function. Incorrect data leads to expired product being picked or stored incorrectly.
• Inconsistent labeling: Labels placed in different locations, using various date formats, or lacking clear lot information make it hard for staff to identify which units to pick first.
• Confusing date formats: Variations like DD/MM/YY vs MM/DD/YY cause misreads. A single standardized format prevents costly mistakes.
• Improper slotting and storage layout: Storing mixed expiry items together without a system means pickers may unintentionally take newer stock first.
• Overreliance on manual processes: Manual checks are error-prone, especially at scale. Relying only on spreadsheets or memory increases risk.
• Lack of staff training and buy-in: When teams don’t understand why FEFO matters or how to follow it, adherence falls and mistakes rise.
• No system for exceptions: Damaged goods, returns, or recalled lots need clear quarantine and handling rules. Without them, expired or unsafe items may re-enter active inventory.
• Ignoring short-dated alerts: Failing to act on items near expiry—through promotions, transfers, or prioritized picking—leads to unnecessary write-offs.

Best practices to make FEFO succeed

• Capture expiry data reliably at receiving: Make recording expiration dates and lot numbers non-negotiable. Use barcode scanning or RFID where possible to avoid manual typing errors.
• Standardize labels and date formats: Use a single date format (recommend: YYYY-MM-DD) and consistent label placement. Include lot number, SKU, and expiry on every pallet and case.
• Configure your WMS for FEFO: If you have a Warehouse Management System, set rules that force picking by expiry date. Systems can automatically direct pickers to the correct lots and prevent selection of incorrect stock.
• Design storage for rotation: Slot goods so earliest-expiring items are easiest to access. Use FIFO/FEFO lanes, front-facing placement, or dedicated FEFO zones to reduce picker travel and mistakes.
• Train and engage staff: Provide simple, repeated training on FEFO procedures and explain the business reasons—safety, cost, and customer satisfaction. Use quick reference cards and on-the-job coaching.
• Set up alerts and dashboards: Use simple reports to flag short-dated items and ensure managers act early. Dashboards can show number/value of goods expiring within set windows (e.g., 7, 30, 90 days).
• Perform regular audits and cycle counts: Include expiry verification in your audit schedule. Short, frequent checks catch errors before they lead to larger issues.
• Handle exceptions clearly: Create quarantine processes, define disposition rules for damaged or recalled goods, and ensure these are visible in your inventory system.
• Coordinate across teams: Work with procurement, sales, and marketing to manage short-dated goods—discounts, bundle offers, or expedited shipments can prevent write-offs.

Practical examples of best practice in action

Example 1 — Small distributor:

A regional food distributor introduced a simple WMS module for lot tracking. They began by requiring receiving staff to scan expiry labels, which populated a dashboard showing SKUs closest to expiry. Sales received a weekly report and ran short-term promotions on the most urgent items. The result: a measurable drop in expired stock and fewer emergency markdowns.

Example 2 — Pharmacy chain:

A pharmacy chain standardized label placement and required pharmacists to scan lot numbers for all received medicine. The central system enforced FEFO at each store’s picking stage. Audits verified expiry dates monthly and flagged any deviations for retraining. The chain reduced expired medication write-offs and improved regulatory compliance.

Simple FEFO checklist for beginners

1. Identify which SKUs require FEFO.
2. Standardize and require expiry date capture at receiving.
3. Label pallets/cases clearly with expiry and lot data in a single date format.
4. Slot stock by SKU and expiry so nearest-expiry items are most accessible.
5. Configure picking rules in your WMS or create simple manual pick cards for small operations.
6. Train staff and perform regular spot checks.
7. Generate and act on short-dated alerts at least weekly.
8. Document exception handling procedures and maintain a quarantine area.

Key KPIs to track improvement

• Value or percentage of expired goods (monthly)
• FEFO pick accuracy (errors per 1,000 FEFO picks)
• Number of manual corrections related to expiry handling
• Time between receiving and first sale for short-dated items

In short, FEFO can significantly reduce waste and improve safety, but it depends on accurate data, consistent labeling, careful slotting, and engaged staff. Start with the basics—good receiving practices and clear labels—then layer in systems and automation as you scale. With these best practices, FEFO becomes less of a burden and more of a routine that protects customers and your bottom line.