21/08/2026
FIFO vs FEFO: Whatโs the Difference? ๐ฆ๐ญ
At Global Link Traders (Pvt) Ltd, we understand that effective warehouse and inventory management is an important part of successful Import-Export and Supply Chain Operations.
Two inventory rotation methods that are often confused are:
๐ FIFO โ First In, First Out
โณ FEFO โ First Expiry, First Out
They sound similar, but they are used for different purposes.
๐ FIFO โ First In, First Out
FIFO = First In, First Out
Under FIFO, the stock that arrived first is moved or sold first.
For example:
๐ฆ Stock A arrives โ January
๐ฆ Stock B arrives โ February
๐ฆ Stock C arrives โ March
Under FIFO:
๐ January stock moves first.
FIFO is commonly suitable for products where expiry is not the primary concern, such as many non-perishable goods.
โธป
โณ FEFO โ First Expiry, First Out
FEFO = First Expiry, First Out
Under FEFO, the products with the earliest expiry date are moved first, regardless of when they arrived.
For example:
๐ฆ Product A โ Expires December
๐ฆ Product B โ Expires October
๐ฆ Product C โ Expires November
Under FEFO:
๐ Product B moves first because it expires earliest.
FEFO is particularly important for products where shelf life and expiry dates matter, such as:
๐ฅซ Food & FMCG
๐ Pharmaceuticals
๐ Animal Feed
๐งด Certain Consumable Products
โ ๏ธ Why Does It Matter?
Using the wrong stock rotation method can result in:
โ Expired or aging stock
โ Product write-offs
โ Inventory losses
โ Customer complaints
โ Increased storage costs
For products with expiry dates, simply following the oldest arrival date may not always be enough.
๐ง Easy Rule to Remember
๐ฆ FIFO โ Oldest Stock First
โณ FEFO โ Earliest Expiry First
The correct method depends on the nature of the product and its shelf-life requirements.
At Global Link Traders (Pvt) Ltd, we believe that proper inventory handling, documentation and logistics management are essential for maintaining product quality and building reliable international trade relationships.
๐ Global Link Traders (Pvt) Ltd
๐ Pakistan
๐ง [email protected]
๐ globallinktraderz.com
Small inventory decisions can have a big impact on the supply chain. ๐๐ฆ
