FEFO stands for First Expired, First-out. It is a stock rotation method used to establish which products are placed first on the shelves and sold to shoppers in stores. This is one of the most common stock rotation methods, along with FIFO.
FEFO is a better option for perishable products from FMCG brands. By using this method, sellers make sure that the first products purchased are the ones that have a shorter expiration date, leaving the ones that have more time before the expiration date in the back.
When they receive the merchandise, retailers start putting it on the shelves by adding the products that expire later in the back, and the ones that are closer to the expiration date in the front.
What are the benefits of using FEFO?
The first and most important benefit is that retailers make sure that their products are always fresh and qualitative. This ultimately leads to customer satisfaction.
FEFO is a great way to avoid deadstock or expired products remaining on the shelf. Using this method can also help out with the cost. You can reduce the cost of stock expiring on your shelf, the cost of the damage to your brand image, and the cost of customer returns.
Using FEFO is essential for perishable goods and that is why retailers that sell FMCG products rely on it.