GlossaryEN1 min readUpdated: Jun 26, 2026

First in, first out (FIFO)

Warehouse managers and logistics operators apply FIFO – First In, First Out – so that goods received earliest are picked and dispatched first.

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Last updated: 26 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/First-in,_first-out

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Definition & Explanation

Warehouse managers and logistics operators apply FIFO – First In, First Out – so that goods received earliest are picked and dispatched first. For perishables such as food, pharmaceuticals, and chemicals, the principle is frequently mandated by regulation, as it directly prevents spoilage, expiry breaches, and the liability exposure that comes with aged stock. Implementation relies on batch numbers, best-before labelling, and rigorous inbound and outbound documentation. In customs and trade finance contexts, FIFO also informs inventory valuation when allocating customs values or origin costs across accounting periods. It stands in contrast to LIFO (Last In, First Out), under which the most recently received stock leaves first – an approach suited to bulk or homogeneous materials where age is irrelevant.

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First in, first out (FIFO)

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Related Terms

FIFO (First-In-First-Out)

FIFO Analysis of Reefer Warehouse Goods

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FIFO Inventory Cold Chain Management

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