FEFO (First Expired, First Out)
ProductionAlso known as: First Expiry First Out, Expiration-based rotation, FEFO inventory management
An inventory rotation method where products with the earliest expiration dates ship first.
What It Means
FEFO (First Expired, First Out) is an inventory rotation method where products with the earliest expiration dates ship first, regardless of when they were received at the warehouse. This is distinct from FIFO (First In, First Out), which rotates by receipt date. For dietary supplements, FEFO is critical because different production lots of the same SKU can have different expiration dates. A 3PL using only FIFO might ship a newer lot with a later expiration while an older lot with an earlier expiration sits in the warehouse, eventually expiring and becoming unsellable. Effective FEFO requires a warehouse management system (WMS) that tracks expiration dates at the lot level and automatically prioritizes picking from the soonest-expiring inventory.
What It Is Not
FEFO is NOT the same as FIFO. FIFO rotates by receipt date (first received, first shipped). FEFO rotates by expiration date. In many industries the difference is irrelevant, but for supplements with variable shelf lives across production lots, FEFO prevents expiration waste. FEFO also does not guarantee product freshness to the end consumer. It minimizes waste by ensuring the shortest-dated inventory ships first.
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