FIFO (First In First Out)
An inventory discipline where stock that entered first is dispatched first, ensuring old inventory is cleared before new.
Full definition
FIFO, First In First Out, is the inventory rule that says the oldest stock in a warehouse must leave first. It is the default discipline for most FMCG categories because it prevents old stock from accumulating at the back of racks while fresh stock is picked from the front.
FIFO protects shelf life but does not optimize for expiry dates the way FEFO does. For products with uniform production runs, FIFO and FEFO produce the same picking order; for products with mixed expiries in the same bin, FEFO is strictly better.
A modern warehouse management layer inside distribution tracking software enforces FIFO by flagging picks that break the rule and by rotating bin locations to make the oldest stock physically easier to pick than the newest.
Real-world example
A biscuit distributor ships the Monday-produced cartons before the Wednesday-produced cartons even though both are in stock, FIFO in action.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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Related terms
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