How is FEFO different from FIFO?
FIFO, first in, first out, picks the stock that was received earliest. FEFO picks the stock that expires earliest. Most of the time the two agree, because older stock usually expires sooner. They split when a newer receipt carries a shorter shelf life, for example when a supplier ships from an older production run or two suppliers make the same product.
FIFO is also a costing method. Using FEFO to decide which lot ships does not change how you value inventory; those are separate decisions.
What does an example look like?
A beverage brand holds two lots of the same SKU. Lot A, 600 cans, was received on 1 March and expires on 30 September. Lot B, 400 cans, was received on 15 March and expires on 15 August. An order for 400 cans arrives on 1 July. FIFO ships Lot A and leaves Lot B with six weeks of life, likely too short to sell through wholesale. FEFO ships Lot B and keeps Lot A, which has three months left.
Why does FEFO matter for food and beverage?
Expired stock is a straight write-off, and retail and wholesale buyers often require a minimum remaining shelf life on delivery. FEFO protects both. It also supports recalls and quality holds, because it depends on knowing which lot is in which location, and that same lot record shows where a batch went.
What does FEFO need to work?
Every unit has to carry a lot and an expiry date from receiving onward, stock has to be tracked by lot per location, and the picking step has to use that data instead of the picker's guess. Without lot-level records, FEFO is a policy on paper.
How does SuppliFlex handle FEFO?
SuppliFlex tracks inventory in an append-only ledger per SKU and location, with lots and batches. The food and beverage seed pack in the sandbox includes lots, expiry, FEFO picking and supplier lead-time drift on 18 months of history, so you can see FEFO picking on realistic data before connecting anything.