How to Implement FEFO in a Warehouse — A Beginner's Guide

Implementing FEFO (First Expired, First Out) in a warehouse can feel daunting at first, but with a clear plan and practical steps it becomes manageable—even for beginners. FEFO helps ensure products with the nearest expiration dates are used or shipped first, reducing waste, improving safety, and maintaining customer trust. This guide walks through straightforward steps and friendly tips to get FEFO working in your facility.

Step 1: Know which products need FEFO

Not every SKU requires FEFO. Start by identifying categories that are time-sensitive, such as fresh food, frozen goods, pharmaceuticals, chemicals, and cosmetics. Create a list of SKUs where expiration dates determine usability, and prioritize implementing FEFO for higher-risk or higher-value items first.

Step 2: Capture expiration data at receiving

• Require suppliers to provide clear expiration dates and lot numbers on all shipments.
• Make expiration date capture part of the receiving checklist—either scanned automatically via barcode/RFID or entered manually if needed.
• Reject or flag shipments missing key date information to avoid untracked stock entering your system.

Step 3: Label clearly and consistently

• Attach visible labels to pallets, cases and individual items that include expiry date and lot number.
• Use a consistent date format (e.g., YYYY-MM-DD) to avoid confusion.
• Place labels in predictable locations so pickers can scan or read dates without moving product unnecessarily.

Step 4: Slot and store with rotation in mind

• Design storage zones so items that need FEFO are easy to access and separate from non-FEFO stock.
• Group by SKU and then by expiry date; keep the nearest-expiry stock at the most accessible face of a bay or shelf.
• For pallet storage, consider front-loading racks or adjustable locations that allow older-dated pallets to be pulled first.

Step 5: Set picking rules and workflows

• Define FEFO as a formal picking rule in your operating procedures and enforce it during picks.
• If you use a warehouse management system (WMS) or order picking app, configure it to direct pickers to the lot with the earliest expiration date.
• Use pick-to-light, voice picking, or mobile devices to reduce errors and ensure pickers select the correct batch.

Step 6: Train staff and create clear SOPs

• Provide short, practical training sessions on FEFO principles and the reasons it matters—safety, compliance, waste reduction.
• Create simple standard operating procedures (SOPs) that explain how to read labels, scan expiry dates, and what to do with short-dated stock.
• Use on-the-job coaching and spot checks until the process becomes routine.

Step 7: Monitor and prioritize short-dated inventory

• Generate regular reports showing items closest to expiry; use these to prioritize promotions, transfers, or expedited shipping.
• Set up alerts in your WMS for items approaching an expiration threshold (e.g., 30 days before expiry).
• Coordinate with sales, marketing, and customer success to move short-dated goods quickly without harming margins.

Step 8: Use technology where it adds value

• A WMS that supports lot and expiry tracking is the single biggest enabler for reliable FEFO at scale.
• Barcode and RFID scanning reduce manual errors when recording and picking by expiry.
• Label printers, handheld scanners, and tablets can all be integrated to create an efficient, auditable process.

Step 9: Audit and refine

• Perform regular cycle counts and include expiry date verification as part of audits.
• Track KPIs like percent of expired stock, pick accuracy for FEFO, and number of manual corrections required.
• Use audit findings to improve labeling, slotting, training, or system rules.

Step 10: Plan for exceptions

• Define what to do with damaged, recalled, or incorrectly dated product. Have a quarantine area and clear procedures for handling exceptions.
• Establish rules for partial-case picking where inner units have different expiry behavior.
• Create contingency workflows for system downtime so FEFO can continue manually without compromising safety.

Beginner-friendly example:

Imagine a small food distributor receiving pallets of yogurt with mixed expiration dates. The receiving clerk scans each pallet and records the expiration dates in a simple spreadsheet or WMS. Pallets with the earliest dates are placed at the front of the shelf. Pickers are instructed to always select the pallets at the front first. Weekly reports show which SKUs are closest to expiry so the sales team can promote those items. Over time the distributor adds barcode scanning and a basic WMS, reducing mistakes and making FEFO automatic.

Common pitfalls to avoid when implementing FEFO:

• Poor data quality: Incorrect or missing expiration dates undermine FEFO. Invest in accurate capture at receiving.
• No standard labeling: Inconsistent labels slow pickers and increase errors; standardize label format and placement.
• Confusing date formats: Use a single date format across the operation to avoid misinterpretation.
• Lack of staff buy-in: Explain the reasons behind FEFO and show the benefits to gain support from frontline staff.

Key metrics to track during rollout:

• Expired goods as a percentage of inventory value
• FEFO pick accuracy (errors per 1,000 picks)
• Days of inventory by earliest expiration
• Time from receiving to first sale for short-dated items

Implementing FEFO is a stepwise process. Start small, focus on the highest-risk SKUs, build reliable receiving practices, and add technology and automation as your volume and complexity grow. With clear labels, simple SOPs, regular audits, and staff training, FEFO can become a standard, low-effort part of your warehouse routine that delivers disproportionate benefits in waste reduction, compliance, and customer satisfaction.