FEFO vs FIFO: stopping short-dated stock before it becomes a write-off.
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.
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.
FEFO across a network, not just a warehouse
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:
Ranking every batch by shelf life left against the demand that will consume it at that location.
Flagging batches that will not sell through before expiry, while there is still time.
Suggesting transfers to RDCs that will consume them, before ordering fresh stock from the plant.
Moving short-dated stock to the front of dispatch and promotions.
Respecting minimum remaining shelf life that modern trade and distributors accept.
The data FEFO needs
Batch and expiry on every receipt, captured by scan, not typed.
Stock by batch at each RDC and C&F agent, updated daily.
Demand forecast per location and SKU.
Customer rules for minimum remaining shelf life.
How SCM for Manufacturers does it
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.
Questions
What is the difference between FEFO and FIFO?
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.
Does FEFO need a warehouse management system?
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.
Why do write-offs happen even with FEFO?
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.