What is the difference between FIFO and FEFO?

FIFO (First In, First Out) means that products received first are also shipped first. FEFO (First Expired, First Out) goes one step further: products with the earliest expiry date are shipped first, regardless of when they were received. FEFO is essential for companies working with perishable products.

FEFO is needed when you work with products that have a limited shelf life, such as food, pharmaceutical products, cosmetics or chemicals. With FEFO, the product with the shortest shelf life is always shipped first, minimizing waste from exceeding the expiry date.

How does the Barcode Scan App support FIFO and FEFO?

The Barcode Scan App automatically reads expiry dates and batch numbers from GS1 barcodes. When picking, the app shows which batch should be shipped first based on FIFO or FEFO, so employees always pick the correct batch.

FIFO and FEFO in practice: shelf life and traceability in your warehouse

FIFO and FEFO in practice

For businesses working with products that have a limited shelf life, correctly applying FIFO or FEFO is critical. An incorrect shipping order leads to waste, food spoilage or even safety issues. In this article, we explain what FIFO and FEFO mean exactly, when to choose which method and how to implement this in practice with Exact Online and the Barcode Scan App.

What is FIFO?

FIFO stands for First In, First Out. This means that products received first in the warehouse are also shipped first. FIFO is the most basic principle of inventory management and is suitable for virtually all businesses. It prevents products from sitting on the shelf for a long time while newer stock is being shipped.

FIFO is widely applied in:

Trade and distribution
Production and manufacturing
E-commerce fulfilment
Wholesale

What is FEFO?

FEFO stands for First Expired, First Out. With FEFO, the focus is not on when a product was received, but on the expiry date. The product with the earliest expiry date is shipped first. This is a stricter method than FIFO and is essential for businesses working with perishable products.

FEFO is indispensable in:

Food industry: Fresh produce, dairy, deli meats and other perishable foods must be shipped based on expiry date.
Pharmaceutical industry: Medicines and medical devices have strict shelf life requirements. Shipping expired products can have serious consequences.
Cosmetics and personal care: Many products in this category have a limited shelf life after opening.
Chemical industry: Chemicals and raw materials can lose their properties over time.

Why is this important?

Not correctly applying FIFO or FEFO leads to concrete problems:

Waste: Products past their expiry date must be destroyed. This is a direct loss of revenue and margin.
Customer satisfaction: Customers who receive products with a short remaining shelf life are dissatisfied and may return products.
Legal liability: In the food and pharmaceutical industries, you are legally required to deliver products within the shelf life period.
Recalls: In case of a product safety issue, you need to quickly trace which batches went to which customers. Without good traceability, this is impossible.

Implementing FIFO and FEFO with barcode scanning

The key to a successful FIFO/FEFO implementation is automatically capturing batch numbers and expiry dates. With GS1 barcodes, this data is encoded in the barcode itself. The Barcode Scan App reads this information automatically:

At goods receipt: Scan the GS1 barcode and the batch number and expiry date are automatically registered in Exact Online. No manual entry, no errors.
At storage: The system registers which storage location each batch is stored at, including the expiry date.
At picking: The app shows which batch should be picked first based on FIFO or FEFO. The employee scans the batch to confirm the correct product has been picked.
At delivery: Full traceability is ensured — from receipt to delivery, you know exactly which batch went to which customer.

Batch management in Exact Online

Exact Online supports batch and serial numbers for tracking traceability. Combined with the Barcode Scan App, batch management becomes simple and error-free. Each batch receives a unique number and an optional expiry date. When picking a sales order, the app automatically displays the available batches, sorted based on the chosen strategy (FIFO or FEFO).

Practical tips

Use GS1 barcodes: Ensure your suppliers place GS1-128 or GS1 DataMatrix barcodes on their products with batch and expiry date. This makes scanning at receipt error-free.
Set preferred locations: Assign fixed locations per product group so that FIFO/FEFO picking runs logically.
Train your employees: Make sure warehouse staff understand why FIFO/FEFO is important and how the app helps them with it.
Monitor actively: Regularly check which batches are nearing expiry and take timely action, such as marking down or re-prioritizing.

Getting started with FIFO and FEFO

The Barcode Scan App for Exact Online makes it easy to apply FIFO and FEFO in your daily warehouse processes. By scanning barcodes at every goods movement, you automatically capture all batch and shelf life data and ensure the right products are always shipped first.

Start barcode scanning today