FIFO Systems: What Is The FIFO Storage Method

FIFO Systems: What Is The FIFO Storage Method

5 Jun, 2019

Inventory management can be enhanced with a dynamic and reliable FIFO system.

Businesses that don’t have an established FIFO storage method run the risk of bleeding money and operating inefficiently. For product-oriented businesses, a reliable FIFO system is of the utmost importance.

As one of four inventory accounting practices, the FIFO storage method assumes goods your company acquired first are sold, used, or disposed of first.

Having a reliable FIFO system is critically important for companies that sell perishable goods, such as grocery distribution firms or food service companies

If you are looking for a FIFO system for your warehouse then please request a free quote from 3D Storage Systems today!

There are three important reasons your company should deploy a FIFO storage system to warehousing and storage systems:

  1. Proactive inventory management. Not only does a FIFO system ensure inventory you purchased first is sold first, but it improves the accuracy of future inventory orders, supports a well-organized warehouse, and helps you meet market demand quickly.
  2. Improved customer service. Your frequent customers need to know that they are always receiving your merchandise on a FIFO basis. Even with durable goods, no one wants to sell dated products.
  3. Reduces cost and reverse logistics. Face it: any product available on the market at some point in time will be returned for one reason or other. A good FIFO system can reduce inventory gluts, and in turn, lower the expense of reverse logistics either internally or with your supply chain management partner.

An Effective FIFO System Is Key for Every Business

Financial accounting concerns aside, no inventory management system is complete without a comprehensive FIFO storage system layout. Dynamic storage systems like pushback rackingpallet flow, or carton flow may be able to greatly improve your ability to achieve an effective FIFO storage method.

Central to reducing inventory glut, increasing staff productivity and safety, and achieving higher storage density, our dynamic FIFO system are tailored to help your warehouse operate more efficiently.

Regardless of what type of storage system you choose, give your business a competitive edge with a FIFO system and expand the amount of vertical and horizontal space in your warehouse and bring down costs while ensuring your employees can do their jobs safely and expediently.

Contact 3D Storage To Learn More About our FIFO System!

Have questions about how you can improve your company’s inventory management with a cost-effective, efficient FIFO systemTalk to us. Our customizable solutions are designed to meet your specific needs and complete satisfaction!