GlossaryEN1 min readUpdated: Jun 26, 2026

FIFO (First-In-First-Out)

Warehouse managers and supply chain planners use FIFO (First-In-First-Out) to ensure that stock received earliest is the first to be picked, processed, or shipped.

Quick Answer

Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/f/fifo.asp

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

116

Mentioned in

–

Definition & Explanation

Warehouse managers and supply chain planners use FIFO (First-In-First-Out) to ensure that stock received earliest is the first to be picked, processed, or shipped. The method is standard in food, pharmaceutical, and chemical storage, where incorrect rotation leads directly to spoilage, batch recalls, or regulatory non-compliance. Implementation relies on clear labelling with receipt dates and lot numbers, or on warehouse management systems (WMS) that automatically direct pickers to the oldest stock first. FIFO differs from LIFO (Last-In-First-Out), which prioritises the most recently received goods, and from FEFO (First-Expired-First-Out), which ranks inventory by expiry date rather than by date of receipt. In many regulated industries, FIFO or FEFO compliance is mandated by GMP guidelines or sector-specific regulation.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

FIFO Analysis of Reefer Warehouse Goods

In reefer warehouse operations, FIFO analysis comes into play whenever stock is picked and dispatched: it verifies that goods stor…

Learn more

First in, first out (FIFO)

Warehouse managers and logistics operators apply FIFO – First In, First Out – so that goods received earliest are picked and dispa…

Learn more

FIFO stock rotation in cold storage

When perishable goods enter cold storage, the FIFO rule – First In, First Out – governs the pick sequence: the earliest-received l…

Learn more

FIFO Inventory Cold Chain Management

In cold chain logistics, FIFO (First In, First Out) is not merely a best practice but a safety-critical and legally relevant requi…

Learn more

FIFO Systems Cold Chain Storage

Cold chain logistics operators apply the FIFO principle (First In, First Out) to pick and ship perishable goods in the order they …

Learn more

FIFO Cold Chain Distribution Models

In food and pharmaceutical logistics, temperature-sensitive products move according to the FIFO principle (First-In-First-Out): go…

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

FIFO (First-In-First-Out)

Next steps

Related Terms

FIFO Analysis of Reefer Warehouse Goods

First in, first out (FIFO)

FIFO stock rotation in cold storage

FIFO Inventory Cold Chain Management

FIFO Systems Cold Chain Storage

FIFO Cold Chain Distribution Models

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers