Keeping your warehouse running efficiently starts with managing inventory the right way. Whether you’re moving stock fast or storing it for the long haul, the system you choose matters. That’s where FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) come into play. These methods don’t just affect how things move. They also significantly impact your bottom line, shaping costs, profits, and the efficiency of your operations.
FIFO storage — where the oldest stock goes out first — is a perfect fit for perishable goods or anything with a tight expiration date. LIFO flips the script, pulling newer stock first, making it more common when storing bulk items or non-perishables. The type of inventory rotation method your warehouse relies on is key to finding the best racking and storage solutions.
Let's take a closer look at how these systems align with FIFO and LIFO and the unique advantages they bring to your warehouse.
When it comes to FIFO storage, gravity does the heavy lifting. Pallet flow racks and carton flow racks keep older stock moving forward for easy access while new inventory gets replenished from the back. These systems improve inventory rotation and reduce manual handling, making them an essential choice for any warehouse prioritizing FIFO workflows.
Pallet flow racks efficiently balance productivity and space, making them a versatile solution for high-turnover facilities. They perform exceptionally well in industries like frozen storage, food and beverage, retail, and manufacturing, where fast inventory rotation is critical. These racks maximize space and streamline inventory flow, ensuring perishable or time-sensitive goods move swiftly through the supply chain.
Carton flow racking is the perfect FIFO storage system for smaller items or boxes. By separating loading and picking aisles, these racks reduce congestion in pick zones and boost overall efficiency. They also improve visibility, shorten shelf times, and simplify restocking processes, making them an excellent fit for mass consumer goods.
Carton flow racks are essential for any warehouse focused on efficient FIFO storage for smaller, fast-moving items.
Push-back racks are a stand-out LIFO system because they allow inventory deposit and retrieval from a single side. These racks maximize storage density while enabling quick loading and unloading. Push-back racks simplify storage by using gravity-fed rails or carts that bring pallets to the aisle front.
Commonly found in third-party logistics, automotive, pharmaceutical, and food distribution industries, these racks work efficiently in temperature-controlled settings like freezers and coolers without requiring specialized equipment.
If your warehouse deals with high-volume inventory that doesn't rely on rotation, push-back racks offer an efficient and dependable solution.
Some racking systems can accommodate both FIFO and LIFO workflows, giving your warehouse the flexibility to optimize storage and adapt to shifting inventory demands.
Drive-in racking is a high-density racking solution that maximizes space and adapts to both FIFO and LIFO workflows. In a drive-in setup, pallets are accessed from the same side, making it ideal for LIFO operations. Drive-thru configurations allow loading on one side and unloading on the other, streamlining FIFO workflows.
With customizable bay heights and depths, these racks can be tailored to fit your warehouse's unique storage requirements, whether you're managing bulk items or high-turnover inventory.
For businesses managing deep-lane storage, pallet moles offer a semi-automated solution tailored to both FIFO and LIFO operations. Controlled via radio frequency (RF), these advanced platforms efficiently lift, lower, and shuttle pallets within your racking system. They’re an ideal option for warehouses prioritizing cost efficiency, space optimization, and throughput.
Choosing the right inventory system for your warehouse starts with understanding the types of products you store. Perishable or time-sensitive goods demand a FIFO approach to keep stock moving efficiently, while uniform or bulk inventory can benefit from a LIFO setup that maximizes storage density and ease of access.
No matter which system you choose, having the right storage solution is essential for maximizing efficiency, reducing waste, and meeting operational goals. At Patterson Pope, our storage experts are ready to design and implement a racking system tailored to your unique challenges and budget. Contact us today to begin transforming your warehouse.