One depot sits on batches near expiry while another orders fresh from the plant. FEFO inside one warehouse is easy; FEFO across a network is where the write-offs are saved.
| Rule | Ships first | Best for |
|---|---|---|
| FIFO (first in, first out) | The stock that arrived first | Goods without a meaningful expiry |
| FEFO (first expired, first out) | The stock that expires first, whenever it arrived | Food, FMCG, pharma, chemicals, anything with a shelf life |
| LIFO (last in, first out) | The stock that arrived last | Bulk goods where age does not matter; rarely right for shelf-life products |
FIFO and FEFO give the same answer only when batches arrive in expiry order. Returns, transfers between depots and batches from different plants break that, which is why FEFO needs the batch and expiry on every unit.
Inside one warehouse, FEFO is a picking rule. Across RDCs it becomes a planning problem: a batch with 40 days left is safe at a fast RDC and a write-off at a slow one. Network FEFO means:
In SCM for Manufacturers, batch is the universal key from plant to shelf. Batches are ranked by shelf life left against the demand that will consume them, transfers between RDCs are suggested before a batch becomes a write-off, and short-dated stock moves first. Related: supply chain control tower.
FIFO ships the stock that arrived first. FEFO ships the stock that expires first, even if it arrived later. For products with a shelf life, FEFO prevents expired stock.
It needs batch and expiry captured on every unit and stock visible by batch. A WMS does that inside a warehouse; across depots you also need network visibility and demand by location.
Because FEFO is applied inside each warehouse while stock sits in the wrong one. Network FEFO moves short-dated batches to where they will sell.
See it on your own data. SCM for Manufacturers puts the plant gate, carriers, RDC stock, cold chain and OTIF on one control tower. Book a 30-minute working session with an engineer.
