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, underlying this are also 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 goods with the earliest expiry date must be picked first. This naturally only makes sense for goods that have an expiry date. Therefore, this strategy is used for the storage of foodstuffs or pharmaceuticals.

Storage strategy no.2: FIFO

Although this storage strategy differs by only one letter or word in name from FEFO, it means something different. The „First in – First Out“ storage strategy states that the goods stored first are also removed first. Put simply, the goods that have been lying there the longest are removed. This means that 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's a „First-In, First-Out“ (FIFO) warehousing strategy, there's also a „Last-In, First-Out“ (LIFO) one. This is used, for example, in drive-through racking systems. The LIFO strategy makes sense when the Goods either hardly changed or there are always different quantities being „stored“.

Storage strategy no.4: HIFO

„Highest in - First out“ in turn means that the goods with the highest value leave the warehouse first. In the case of 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“ - correct. The cheapest goods leave first. However, HIFO and LOFO are used less often or as a supplementary method.

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