FEFO, FIFO or LIFO? The differences in storage strategies

Whether invoices, the e-mail inbox or documents. Everyone quickly appreciates a good filing system, as it makes everyday life easier and avoids endless searching. However, a Schufa entry due to a lost invoice is the worst thing that can happen to you in the chaos of your private desk.

Professionally, things are different. Especially when you no longer have to manage just your own paperwork, but an entire warehouse. Slipcases and folders are relatively useless. Nevertheless, the warehouse staff have to keep an overview. Fortunately, the appropriate software now helps here. However, this is also based on so-called "storage strategies". These are less concerned with the what and where is stored, but how the warehouses, inputs and outputs are structured.

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Storage strategy No. 1 : The FEFO

FEFO stands for "First Expired - First Out" and means that the goods with the earliest expiry date are the first to be removed from storage. Of course, this only makes sense for goods that have an expiry date. This is why this strategy is used when storing food or pharmaceuticals.

Storage strategy no.2: FIFO

This storage strategy differs from the FEFO by only one letter or word. Nevertheless, it means something different. The "first in - first out" storage strategy means that the goods stored first are also removed first. Put simply, the goods that have been in the warehouse the longest are taken out. This means in the logistics then flow rack storage. However, there are also combinations of FEFO and FIFO, for example. Good systems make it possible.

Storage strategy no.3: LIFO

You can probably guess that if there is a storage strategy based on the "first in - first out" principle, there is also one based on the "last in - first out" principle. This is used, for example, for drive-in racking systems. The LIFO strategy makes sense when the Goods either hardly changes at all or there are always different quantities that are "removed".

Storage strategy no.4: HIFO

With "Highest in - First out", the goods with the highest value leave the warehouse first. In the case of the logistics this is the procurement value. This strategy is useful, for example, with raw materials that are also attacked by time.

Storage strategy no.5: LOFO

"Lowest in - first out" - that's right. Here, the cheapest goods go out first. However, HIFO and LOFO are used less frequently or in addition to each other.

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