FEFO and Expiry Date Tracking: How Shipux Manages Products with Shelf Life

If your products have expiry dates -- supplements, vitamins, skincare, food, beverages, pet products -- then FEFO inventory management is not optional. It is the difference between a brand customers trust and a brand with a growing problem of expired returns, angry reviews, and potential liability. Here is how Shipux does it.

What Is FEFO?

FEFO stands for First Expired, First Out. It is an inventory management method that ensures products with the earliest expiry dates are always picked and shipped before products with later expiry dates.

It is the opposite of a situation where your warehouse team just grabs whatever is closest to the front of the shelf -- which might be a product that arrived recently with a 2-year shelf life, while older stock with 3 months remaining sits in the back gathering dust until it expires.

FEFO is the standard for pharmaceuticals, food and beverage, supplements, and any product where shelf life matters to the end customer.

How FEFO Compares to FIFO and LIFO

FIFO (First In, First Out): The oldest-received inventory ships first. This works well for most products but does not account for expiry dates -- two batches received at different times might have different shelf lives.

LIFO (Last In, First Out): The most recently received inventory ships first. This is almost never right for perishable products -- it leaves older stock to expire.

FEFO (First Expired, First Out): The inventory expiring soonest ships first, regardless of when it was received. This is the correct approach for any product with an expiry date. Shipux uses FEFO for all applicable products.

How Shipux Implements FEFO in Practice

Step 1 -- Receiving and recording expiry data: When your inventory arrives at our Downers Grove warehouse, every unit or case is scanned and logged. We record the SKU, lot or batch number, manufacture date, and expiry date. This happens at receiving before any product goes to a shelf.

Step 2 -- Lot-segregated storage: Products from different lots (different expiry dates) are stored separately and clearly labeled. Our warehouse management system knows exactly which physical location contains which lot of which product.

Step 3 -- Automated FEFO picking: When an order comes in for your product, our system directs warehouse staff to pick from the lot with the earliest expiry date first. Staff cannot simply grab from whatever bin is most convenient -- the system tells them exactly where to pick from.

Step 4 -- Real-time expiry visibility: Your Shipux dashboard shows current inventory broken down by lot and expiry date. You can see at a glance how many units of each lot remain and when they expire.

Expiry Date Alerts

Shipux can send you automated alerts when products are approaching expiry thresholds. Common configurations include: alert when a product has 90 days remaining, alert when a product has 30 days remaining, daily summary of all lots with expiry within your specified window. You configure the thresholds and we send the alerts -- giving you time to run a promotion, adjust your reorder schedule, or make a decision about near-expiry stock before it becomes a problem.

Lot Traceability and Recall Readiness

With full lot tracking, Shipux can tell you exactly which customers received product from a specific lot number. If you ever face a recall -- whether voluntary or required -- you can identify every affected order within minutes, not days.

This is not just for catastrophic situations. It also helps with quality control investigations, customer complaints about a specific batch, or manufacturer disputes about product quality.

Which Products Need FEFO at Shipux?

We apply FEFO to any product with an expiry date or shelf life including: dietary supplements and vitamins, skincare and cosmetics with PAO (period after opening) dates, food and beverage products, pet food and supplements, pharmaceutical products, and essential oils and aromatherapy products.

If you are not sure whether your products need FEFO tracking, ask us. We would rather implement it unnecessarily than have you dealing with expired product complaints.

How FEFO Reduces Your Losses

Without FEFO, brands frequently discover they have a lot of near-expiry product sitting in a warehouse while fresher stock has been selling. By the time they notice, the older stock may have expired and needs to be written off -- a direct financial loss. With FEFO, this situation essentially cannot happen. Older (expiry-wise) stock always moves first, which means your inventory turns efficiently and write-offs from expiry are minimal.

Frequently Asked Questions

What does FEFO stand for?

FEFO stands for First Expired, First Out. It is an inventory management method that ensures products with the earliest expiry dates are always shipped before products with later expiry dates.

How is FEFO different from FIFO?

FIFO (First In, First Out) ships the oldest-received inventory first, without regard to expiry dates. FEFO specifically tracks expiry dates and ships the soonest-expiring product first. For products with expiry dates, FEFO is more accurate than FIFO because two batches received at different times may have different shelf lives.

Does Shipux track lot numbers for every product?

We track lot numbers and expiry dates for products that require it. At receiving, you tell us which products need lot tracking, and we apply it consistently for those SKUs.

Can I see my lot inventory breakdown in real time?

Yes. Your Shipux dashboard shows inventory broken down by lot and expiry date for each applicable SKU. You can see exactly how many units of each lot remain and when they expire.

How quickly can you identify orders from a specific lot if I have a recall?

We can identify all orders fulfilled with a specific lot number within minutes of your request. We can also immediately quarantine any remaining units of that lot.

What if my products do not have printed expiry dates but do have lot numbers?

We can track lot numbers without expiry dates. This still gives you full traceability -- you would use your lot-to-expiry date records from your manufacturer to identify which lots are approaching expiry.

Can Shipux dispose of expired inventory?

Yes. If you have inventory that has expired or that you want removed from your stock, we can dispose of it. Disposal fees apply. You can also request that expired stock be returned to you rather than disposed of.