What is FEFO (First Expired, First Out)?

FEFO (First Expired, First Out) is an inventory rotation strategy where products with the nearest expiration dates are picked and shipped before products with later expiration dates, regardless of when they were received into the warehouse. While FIFO (First In, First Out) sequences inventory by receipt date, FEFO sequences by expiration date—a critical distinction for businesses selling perishable goods, pharmaceuticals, supplements, cosmetics, or any product with a limited shelf life. FEFO ensures that customers receive products with the maximum remaining shelf life while minimizing the risk of products expiring in the warehouse.

Why It Matters

For businesses handling perishable or date-sensitive products, FEFO is not optional—it’s a fundamental requirement. Expired products cannot be sold, and shipping near-expired products to customers creates a poor experience and increases return rates. In regulated industries like food and pharmaceuticals, selling expired products carries legal liability and can result in fines, recalls, and reputational damage. Even in less regulated categories like cosmetics or supplements, customers expect products to have reasonable remaining shelf life when they arrive.

FEFO also has significant financial implications. Products that expire before they can be sold become dead stock—a direct inventory write-off that hits the bottom line. For businesses with thin margins, particularly in grocery and food service, the cost of expired inventory can be the difference between profitability and loss. By systematically rotating inventory based on expiration dates, FEFO minimizes spoilage and ensures that the maximum number of units make it into customers’ hands before their expiration dates.

How It Works

FEFO implementation requires expiration date tracking integrated into warehouse operations:

• Expiration Date Capture: During receiving, the expiration date (or best-by, use-by, or sell-by date) for each batch or lot is recorded in the inventory system. This date becomes a key attribute associated with every unit in that batch.
• Expiration-Based Picking: When a pick task is generated for a customer order, the warehouse management system directs the picker to the location holding the batch with the earliest expiration date—not necessarily the oldest received batch. If two batches were received a week apart but the second batch has an earlier expiration date (due to different production timing), FEFO picks the second batch first.
• Minimum Shelf Life Rules: Many businesses and retail partners require a minimum remaining shelf life at the time of shipment. For example, a retailer might require that products have at least 60 days of shelf life remaining upon delivery. FEFO systems enforce these rules by excluding batches that fall below the minimum threshold from the available-to-pick pool.
• Expiration Alerts: The system monitors all inventory for approaching expiration dates and generates alerts when products are nearing their expiration window. This gives the business time to take action—markdown pricing, donation, repositioning to faster-moving channels—before the products become unsellable.

How Nventory Helps

Nventory enables FEFO inventory management by tracking expiration dates at the batch level across all warehouse locations. Picking rules automatically prioritize batches with the earliest expiration dates, and minimum shelf life thresholds prevent near-expired products from being shipped to customers or retail partners. Expiration alerts notify your team when inventory is approaching its sell-by window, giving you time to act before products become waste. By integrating FEFO logic into your multichannel fulfillment workflow, Nventory helps you reduce spoilage, maintain compliance, and deliver fresher products to every customer.