Do you have your own warehouse? Is warehouse inventory management one of the greatest challenges for you right now? Let us take you for a ride over how to solving for coming challenges and obstacles and invest more of your time in managing revenues and profits!
Many retailers, wholesalers, manufacturers or even e-commerce sellers have hundreds of locations across warehouses to carry thousands of products. But majorly face these three specific challenges with the warehouse inventory-
- Out of Stock (OOS)
- Out of date
Stock rotation to avoid loss due to out of date warehouse inventory is the prime issue companies face which even digs them into huge losses if not effectively managing in product expiry date time. Many businesses have the inventory with a products expiration date. So, dispatch & shipping the items on the principle of “First in, First Out” protect the quality of product and freshness. Using FIFO, you can ship products relatively in neat and clean boxes, as products inventory would have spent less time in your warehouse.
Companies that sell perishable items, such as food items, medicines or in trend fashion accessories, apparels, footwear etc. commonly follow “First in, First Out“ as their method for warehouse inventory valuation.
For example, a medical store purchases medicines stock at regular intervals. As customers buying medicines, the stockers push the oldest medicine boxes to the front of the shelf and replace medicines with new MFG date behind those boxes. The boxes of medicines with the nearest expiration dates are sold first, whereas the ones with later expiration dates are sold after the older medicines. This ensures that the first products buying will be the first products sold!
Benefits of Adapting FIFO in your warehouse:
Reduce Inventory Loss Due to discontinuance.
Out of date or obsolete products aren’t an issue for most of the industries. But for those who deal in perishable products, to remove the Out of date warehouse inventory is the costliest and most unnecessary task in a warehouse. Use of “First in, First Out” in such industries ensures the items to be picked, packed and shipped as quickly as possible.
Improved Customer Experience
Reduce the number of warehouse incidents where customers can receive an order, obsolete product due to improper rotation of stock in your warehouse. With FIFO you can now ensure better user experience and deliver fresh items which are cleanly packed.
Warranty Control Improvements
With FIFO implemented in your warehouse, define Shelf life, Expiry Date, Manufacturing Date & Tolerance. This will eliminate incidents of dispatch & shipping products that are close to or past warranty expiration dates.
Make Your Warehouse Stock Rotation Efficient
Implementing first-in, first-out (FIFO) will ensure that you ship the most recent and desirable products to your customers. It is the most widely used inventory valuation method as it is practically even much easier and safer for companies to optimize.
Thinking which Solution to Optimize, to Implement FIFO?
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