Expert: Peter A. Crosby - 3/25/2008

Question
Can you tell me or direct me to a source that offers suggestions for how to implement FIFO in a distribution center?  We stock about 1700 SKUs and 30,000 pieces.  We currently use the production date that is printed on our product ID labels to pick the oldest product first when filling an order.  However, the date is printed very small and picking in this manner is time consuming and subject to human error.  Are there other easy, cheap methods that we could use to FIFO our product?  Thanks in advance!

Answer
Bill:

The easiest and cheapest method to maintain "first-in-first-out" inventory is to keep the newer product put away location in the back rather than the front pallet space, flowrack, case picking location, etc.

Also, if you pick from pick slots, and put away from reserve, and have a warehouse management system, program the directed replenishment from reserve to pick from the oldest inventory.

As you can see, this all depends on how you layout and manage your warehouse product location system.

Our consulting group conducts diagnostic, design, search, and selection  and implementation of inventory systems, and please call me at 310-553-6837 to learn more about our services in this area.  Thanks.

Pete Crosby
Principal, Supply Chain Practice
petecrosby@cgrmc.com