Inventory Management

FIFO & FEFO Allocation

Automatically pick the right inventory first. Ship oldest stock before it expires. Comply with regulations and reduce waste.

See How It Works
"
We have incredibly detailed insight into our inventory and all of the movements that go along with it. Fulfil allows us the ability to trace things in a way that we never could before.
HPN Supplements
Nicole
Operations, HPN Supplements

Why Picking Order Matters

Expired Inventory

New stock gets picked while older stock sits in the back. Eventually, you're writing off expired product that should have sold months ago.

Compliance Risk

Food, supplements, and cosmetics have regulatory requirements. Shipping expired or near-expiry product can result in recalls and fines.

COGS Accuracy

When you don't track which lot shipped, you can't accurately calculate COGS. Auditors want to know which specific inventory was sold.

FIFO vs. FEFO: Which to Use?

Both methods ensure proper inventory rotation. Choose based on your product type and business requirements.

FIFO

First In, First Out

Pick inventory in the order it was received. The oldest stock (by receipt date) ships first, regardless of expiration date.

Best For:

  • • Non-perishable goods
  • • Electronics and hardware
  • • General merchandise
  • • Products without expiration dates
Example: Received batch A on Jan 1, batch B on Jan 15. FIFO picks from batch A first.

FEFO

First Expired, First Out

Pick inventory by expiration date. The lot expiring soonest ships first, regardless of when it was received.

Best For:

  • • Food and beverages
  • • Supplements and vitamins
  • • Cosmetics and skincare
  • • Pharmaceuticals
Example: Batch A expires Dec 2025, batch B expires Oct 2025. FEFO picks from batch B first.

How It Works in Fulfil

Configure allocation rules at the product or warehouse level. Fulfil automatically directs pickers to the correct inventory.

1

Set Allocation Method

Configure FIFO or FEFO per product or globally for the warehouse.

2

Track Lot Data

Record receipt dates and expiration dates when inventory arrives.

3

Automatic Selection

When orders come in, Fulfil selects the correct lot based on your rules.

4

Directed Picking

Pickers see exactly which bin and lot to pick from. No guesswork.

Additional Allocation Rules

Expiration Cutoffs

Don't ship anything expiring within X days. Products approaching expiration are automatically excluded from allocation and flagged for review.

Channel-Specific Rules

Different channels may have different requirements. Amazon might require 90+ days shelf life, while your own site can ship 30+ days.

Lot Preferences

Prefer specific lots for specific customers. A wholesale account might want consistent lot numbers across their order.

Common Questions

Can I use FEFO for some products and FIFO for others?
Yes. Allocation methods are configurable per product. Use FEFO for perishables like food and cosmetics, FIFO for non-perishables like electronics or apparel. You can also set a default at the warehouse level and override per product.
What happens if FEFO selects a lot in a far bin?
Fulfil can balance expiration requirements with picking efficiency. You can configure rules like "prefer FEFO, but allow FIFO if expiration dates are within 30 days of each other and FIFO lot is in a closer bin."
How do I handle inventory approaching expiration?
Fulfil can alert you when lots approach expiration thresholds. Common actions include: moving to a clearance sale, donating, transferring to a channel with shorter shelf-life requirements, or writing off. The inventory aging report shows what's at risk.

Related Features

Lot & Batch Tracking

Track expiration dates and production batches for recall management.

Cycle Counting

Verify inventory accuracy without disrupting operations.

Inventory Management

Complete inventory control with real-time tracking.

Ready to optimize inventory rotation?

See how Fulfil handles FIFO, FEFO, and lot-based allocation.

Request a Demo