First-In, First-Out (FIFO) Storage Systems
The First In, First-Out (FIFO) method of inventory valuation systems are specially designed “pushback” warehouse racking configurations which are right for 3PLs who handle goods within the critical expiration dates. These would include fresh or frozen or medical supplies.
Deploying such type systems would clearly help 3PLs keep their clients fulfillment & satisfied and their most perishable items flowing out the door. First In, First-Out systems also help to increase your storage capacity, decrease inventory gluts and lower the cost of turn around of reverse logistics.
Last-In, First-Out (LIFO) Storage Systems
The Last In, First-Out (LIFO) method of inventory valuation storage systems, or Gravity Flow, are specially designed configurations that enable 3PLs to maximize their internal warehouse space. Last In, First-Out (LIFO) systems are work best for those warehouses who do not deal with goods or SKU Products that have critical expiration dates.
Last In, First-Out (LIFO) systems can increase warehouse productivity speed and reduce damage to goods / SKU Products, as they can be stored away from the daily operations. They also facilitate high warehouse storage density, which enables a 3PL to maximize its overall return on its facility investment.
Both First In, First-Out (FIFO) and Last In, First-Out (LIFO) Storage Systems are also attractive because, unlike many of the other technologies mentioned above, they do not require an upgrade of your warehouse workflow – or a massive amount of investment. Both have also been deployed widely around the warehousing industry, because of this they already have a solid track record. While they may not yield as high an investment return as some of the new technologies listed above in the unlimited, they do tend to return the initial investment faster.