What is the impact of following FIFO for perishables?

Following the FIFO (First In, First Out) method for perishables is particularly effective in minimizing waste by ensuring that older stock is used first. This inventory management practice is crucial in industries dealing with perishable goods, such as food and pharmaceuticals, where products have a limited shelf life. By rotating stock according to the FIFO principle, businesses reduce the likelihood of products expiring before they can be sold, which directly contributes to less waste and more efficient inventory turnover.

This approach not only helps in maintaining the quality of the products offered to customers but also protects the business’s bottom line by avoiding the costs associated with unsold, expired inventory. It’s a proactive strategy that both preserves product integrity and enhances overall operational efficiency, making it particularly beneficial in the retail sector dealing with perishables.