Is a common thing to hear a name and don’t know exactly what it means, but it highly important to search and keep a track of what is going on with your industry so you can stay updated. One of the systems that you have to understand is FEFO.
If you are lost when it comes to what the FEFO meaning is and why it is so important, Polyexcel’s blog created an article with all the information you must know, so you can apply it to your business and don’t miss out on anything. To get all this answers, keep on reading.
What is FEFO?
FEFO is a system that helps you with your inventory, especially and most specifically your inventory organization. It also keep track of every information about your business that you may need and, by doing that, keeps an easier flow.
The literal meaning of FEFO is “First Expired, First Out”, that is basically the politics that the product that is about to expire on stock and inventory is the one that is going to be shipped away first.
This generates an organization not based on the lot of the product, but focusing on the expiring date, so nothing is tossed away or goes bad. This also allows you organize physically everything so the product can easily go to the next step of production without any issues or confusion.
This kind of system is mostly applied in industrial routines and operations, especially the ones that deal with foods, drinks and perishable products, since these are the ones that have a more specific date that can not go bad. Just like pharmaceutical and chemical.
Besides being used by big companies operations, it can also be found at local business, such as supermarkets and bakeries. They apply this system to keep track of what has to be used or what needs to go on sales. By doing this, the losses can decrease.
What is the result of applying FEFO?
If a company decides to apply the FEFO method to their routine, a lot of losses can be avoid. Some products that were going to be forgotten about, are now being shipped away or sell first, and that can be lucrative for the business.
By avoiding the waste of products that got expired, you are not only doing good for the financial aspect of your business, but also not discarding things that could have been used if they were properly organized.
It is also really essential that all administrative crew knows the expiration dates of the products and calculate the time all process take to get done, so everything can flow in a smooth way and guarantee the quality of the result.
Other systems compared to FEFO
There are other systems that can be similar to FEFO inventory management, but not necessarily have the same structure or even the same goals as this one. So, the best thing is to understand how everything works and then decide which is best for your company.
The FIFO system is an opposite way of organizing your inventory and stock. It stands for “First In, First Out”, that basically means that the products that arrived first, are the ones that get shipped or sent to production first.
The products get organized by production date, so the first ones made are the first ones to go. They get to other production stages or even go to stores first, that is another way of dealing with your inventory.
By doing that, you can avoid that products lose their interesting factor or go out of fashion. It is important to keep a track of what is in and out, so you can make sure your sales are going to happen at the right time.
Know all the information about FEFO with Polyexcel!
Now you know exactly what FEFO means, how to apply it and what are the results, you can decide if this is the best system to organize your inventory and stock. To stay in touch with the newest achievements and information on the market, keep an eye on the Polyexcel blog!
