Effective FEFO and FIFO warehouse management comes down to one thing: having complete, near-real-time control over warehouse locations, batches and expiration dates. A modern WMS, such as Pinquark, can use algorithms, including AI capabilities, to automatically identify the right goods for dispatch, optimize inventory placement and reduce operational errors-without requiring staff to monitor the rules manually.
Why FEFO and FIFO Stop Working Manually
In theory, FIFO (first in, first out) and FEFO (first expired, first out) are simple. The problem starts in practice: multiple warehouse locations, SKU turnover, different product batches, short shelf lives and time pressure.
Typical challenges include:
- Inconsistent expiration date information in the WMS
- Manual warehouse worker decisions instead of system-based rules
- Suboptimal inventory placement (slotting)
- Difficulty managing batches and serial numbers at scale
- Losses caused by expired products or incorrect dispatches
As a result, FIFO works only “on paper,” while FEFO is not consistently enforced by the system.
WMS as the Foundation for FEFO and FIFO Control
A modern WMS does more than record warehouse movements-it can actively support process control. The key is to connect three elements:
- Locations-where the goods are physically stored
- Batches/serial numbers-which delivery the goods came from
- Expiration dates-when the goods are no longer suitable for use or sale
The WMS integrates this data and can use it to support operational decisions, including:
- which goods to dispatch (FEFO or FIFO),
- which location to pick from,
- how to direct the warehouse worker’s route.
This means that batch and serial number management is no longer purely a manual task but becomes a partially automated process.
AI-Native WMS: How Algorithms Can Support FEFO
The term AI-native is a marketing term and has no single standard definition in the industry. In practice, it refers to systems that use algorithms, including machine learning, more extensively than traditional WMS solutions.
In the context of FEFO and FIFO, algorithms can support:
- Picking optimization-selecting locations based not only on expiration dates but also on the most efficient route
- Slotting-dynamically positioning goods according to turnover and expiration dates
- Prediction-identifying batches at risk of expiring
- Resource planning-estimating labor and equipment requirements
It is important to note that the effectiveness of these functions depends on data quality and system configuration.
Digital Twin of a Warehouse: Testing Without Risk
One operational challenge is the limited ability to test changes without affecting the live warehouse. One solution used in the industry is the concept of a digital twin.
A digital twin is a virtual representation of a warehouse that can be used to:
- test different FEFO and FIFO strategies,
- change the layout of warehouse locations,
- simulate demand scenarios,
- analyze the impact of changes on picking times and errors.
What-if scenarios support data-driven decision-making while reducing operational risk. However, it is important to remember that simulation accuracy depends on the quality of the models and input data.
Low-Code: Adapting Processes to Operations
For many companies, the problem is not the lack of a WMS but its limited flexibility. Processes can be difficult to change without IT support.
Low-code solutions can help reduce this barrier:
- the system can be adapted to operations more easily,
- some changes do not require advanced programming,
- modification implementation times can be shorter.
The available capabilities depend on the specific system but often include:
- defining FEFO/FIFO rules,
- setting picking priorities,
- handling exceptions, such as batch holds,
- location assignment logic.
This is particularly important in operations where expiration dates must be handled flexibly.
Application Builder: Operational Flexibility
Some WMS solutions offer application or interface builders that allow processes to be modified without completing a full software development cycle.
In the context of batch and serial number management, it may be possible to:
- create views for warehouse workers,
- adapt picking screens for FEFO,
- add expiration date validations,
- modify receiving and dispatch workflows.
The scope and speed of implementing changes depend on the specific solution and its configuration.
Some systems also allow different processes to be tested in parallel, such as FIFO versus FEFO for selected SKUs. However, this functionality is not an industry standard.
How to Organize FEFO/FIFO Step by Step
If you want to gain practical control over FEFO and FIFO warehouse management, focus on these steps:
- Standardize data-each batch should have an assigned expiration date, where applicable, and a unique identifier
- Link batches to locations-ensure visibility of where the goods are stored
- Define the rules-specify when FIFO applies and when FEFO applies
- Automate decisions-use the system to support product selection
- Optimize slotting-place fast-moving goods and products with short shelf lives closer to picking areas
- Monitor exceptions-holds, returns and complaints
- Test and iterate-use simulations or historical data for ongoing optimization
Without system support, maintaining these rules at scale is difficult.
Return on Investment: Where You Can Achieve Real Savings
Implementing a WMS for FEFO/FIFO management can generate savings by reducing:
- losses caused by expired products,
- picking errors and customer complaints,
- unnecessary warehouse movements,
- the time spent making manual decisions,
- inefficient use of warehouse space.
The scale of the benefits depends on the specifics of the operation, implementation quality and the extent to which the system’s features are used.
WMS solutions generally support operational scalability, although this may require additional configuration or process changes.
FAQ
What is FEFO and how does it differ from FIFO?
FEFO (first expired, first out) means dispatching products with the earliest expiration dates first, while FIFO (first in, first out) follows the order in which products were received. FEFO is essential for products with a defined shelf life.
When should you use FEFO instead of FIFO?
FEFO is used when products have expiration dates, such as FMCG and pharmaceutical products. FIFO is sufficient where the order of receipt matters more than the expiration date.
How does a WMS support expiration date management?
A WMS can record expiration dates for each batch and support product selection for dispatch according to FEFO or FIFO rules.
How can you control product batches in a warehouse?
Each batch should have a unique identifier, an assigned location and, where applicable, an expiration date. A WMS enables you to track its movements and availability.
Can FEFO/FIFO rules be changed without programming?
In some systems, including low-code solutions, this is possible. However, the scope of available changes depends on the specific WMS.
How can you check whether FEFO is working correctly?
You can use system reports, historical data or, if supported by the system, simulations such as a digital twin to verify that FEFO is working correctly.
How does AI help with warehouse management?
Algorithms can support picking optimization, inventory placement, the identification of expiration risk and resource planning. However, their effectiveness depends on data quality and implementation.
