FIFO vs FEFO is the choice between first in, first out and first expired, first out. In a food store or cold room the question is simple: do you ship the oldest delivery first, or the product whose date runs out first? The answer depends on the product, and the rule only works if the floor can follow it.
This article gives you a way to pick the rule product by product, a routine for capturing dates at the dock, and a clear owner for checking rotation. It covers storage and dispatch only, not food safety certification.
FIFO vs FEFO in one paragraph each
FIFO stands for first in, first out. The oldest stock by receiving date is picked and shipped first, so new deliveries go behind or beneath what is already there. It is simple to teach and works well when every delivery carries a later date than the one before.
FEFO stands for first expired, first out. The stock with the earliest date is picked first, whatever day it arrived. A pallet received last Wednesday with a short date goes before a pallet received last Monday with a longer one. FEFO costs more effort at receiving because every pallet needs a date, but it is the safer rule for products that run out of date.
Pick the rule product by product
One rule for the whole building usually fails somewhere. Choose by asking one question of each product: can a newer delivery carry an earlier date than an older one? If the answer is yes, or the date matters for safety, use FEFO. If dates always follow delivery order, FIFO is enough and is easier to run.
- Use FEFO. Products with a use-by date, products from several suppliers or batches, and anything where a short-dated delivery can land behind a long-dated one.
- FIFO is enough. Products from one supplier on a steady cycle where each delivery carries a later date than the last.
- Review the list. A product moves to FEFO the first time a short-dated delivery arrives behind older, longer-dated stock.
Here is a worked example with hypothetical round numbers. A cold room holds 10 pallets of a dairy product received on Monday with a date of 20 November. On Wednesday, 10 more pallets arrive from a different batch with a date of 15 November. FIFO would ship Monday's pallets first and leave the earlier-dated Wednesday pallets to age. FEFO ships Wednesday's pallets first.
Capture the date at the dock, not at the shelf
FEFO fails when the date is first read on the shelf, because by then the pallet is buried and the chance to record it has gone. The date has to be captured at receiving, while the pallet is still on the dock and its label is easy to read. Counting and damage checks at the dock are covered in a separate guide on the goods receiving process.
- Read the date at the dock. Whoever books in the pallet reads the date from the carton and keys it into the stock record.
- One date per pallet. If a pallet carries two dates, split it into two pallets before putaway, each with its own date.
- Label the date where it can be seen. Put the date on the pallet label at the front of the pallet, so the person on the floor reads it without moving anything.
- Keep the records together. Date marking in food storage only works if the date in the system matches the date on the pallet, or the pick list sends people to the wrong stock.
A site that captures dates well still needs people who can do it consistently. If you are hiring for receiving and cold storage, our guides to cold storage hiring and cold chain recruitment cover the staffing side.
Put the rule into the pick face and the pick list
A rule written on a wall does nothing if the pick list sends people to the nearest pallet. The system has to ask for the right pallet, and the pick face has to make it easy to take it.
- Pick list. For FEFO products the list shows the earliest date first. For FIFO products it shows the oldest receiving date first. The picker should not have to choose.
- Pick face. Older or earlier-dated stock sits at the front or the lower position, and new stock goes behind or above. Never stack a new pallet over old cartons in a partly used pick face.
New and casual crew are where rotation usually breaks, because the rule is not obvious to someone on their first week. Chandler Personnel works across food production and warehousing and logistics, and it runs site inductions on behalf of clients. You can ask the provider to cover your rotation rule in the site induction so every new starter hears it before the first pick.
Who checks rotation, and how often
Rotation needs a named owner. Pick one person per site, usually a supervisor or team leader, and put the weekly walk in their routine. A check that belongs to everyone is not done by anyone.
- Front of every pick face. Is the earliest date at the front?
- Mixed dates. Is any pallet carrying more than one date?
- Unlabelled pallets. Is the date missing, unreadable or different from the record?
Weekly is a sensible starting point. Walk more often for short-dated products and after busy periods. Record what you find, because a repeat problem points to a gap in the pick list or the induction, not to a careless picker. If you also run processing and packing lines, Chandler Personnel's food manufacturing recruitment page is the place to start for those roles.
What a date mark means for stock you hold
Date marks are a guide to how long food can be kept. According to FSANZ use-by and best-before dates guidance, there are two types of date marking, and the food supplier is responsible for placing the use-by or best-before date on the food.
- Use-by. Foods that must be eaten before a certain time for health or safety reasons carry a use-by date. They can't legally be sold after that date.
- Best-before. Most foods carry a best-before date. Foods with a best-before date can legally be sold after that date, provided the food is fit for human consumption.
- Storage directions. Where a product needs specific storage conditions to keep until its date, the supplier must put that on the label. Follow the label.
For that reason, treat use-by stock as FEFO with a hard cut-off at the date, and treat best-before stock as a quality decision that your customer agreement and food safety adviser should guide. For who is responsible if stock is relabelled or held past a date, ask your food safety adviser and read the FSANZ page for the current rules.
Related Resources
- Food production staffing
- Warehousing and logistics staffing
- Cold storage hiring
- Cold chain recruitment
- Food manufacturing recruitment
- FSANZ use-by and best-before dates
Common Questions About Choosing a Stock Rotation Rule
1. What is the difference between FIFO and FEFO?
FIFO means first in, first out: the oldest delivery by receiving date is shipped first. FEFO means first expired, first out: the stock with the earliest date is shipped first, whatever day it arrived. The two give the same result only when older deliveries always carry earlier dates.
2. Which stock rotation method is better for a food warehouse?
FEFO is the safer choice for products with a use-by date or dates that vary between deliveries. FIFO is easier to run and enough where each delivery carries a later date than the one before. You can use both, chosen product by product.
3. Can I sell food after its best-before date?
According to FSANZ, foods with a best-before date can legally be sold after that date, provided the food is fit for human consumption. Foods with a use-by date can't legally be sold after it. Check your customer agreement and talk to your food safety adviser before you ship best-before stock past its date.
4. Who is responsible for date marking on food I store?
FSANZ says the food supplier is responsible for placing a use-by or best-before date on food. For a storer, a sound floor routine is to read the supplier's date, record it at receiving, follow the storage directions on the label and rotate by it. Check your customer agreement for anything further.
5. How do I stop old stock being buried behind new pallets?
Capture one date per pallet at receiving, put the date on the front of the pallet, and make the pick list ask for the earliest date. Keep new stock behind or above older stock in the pick face, and have one named person walk the store each week.
Rotate by date, not by habit
The right rotation rule is the one your crew can follow on a busy shift, chosen product by product. Capture the date at the dock, build the rule into the pick list and give one person the weekly walk. When you need crew who can follow a rotation rule from the first shift, ask your labour hire provider to cover it in the site induction. This week, list your five fastest-moving dated products and decide FIFO or FEFO for each.
