What are FIFO, FEFO, and LIFO?
These are logistical terms for the different ways of picking up goods from the warehouse for processing or delivery to customers, also known as picking rules.
It is an acronym for First-In First-Out. Goods that are received in the warehouse first are picked up first.
It is an acronym for First-Expiry First-Out. In this type of pick-up, the goods with the earliest expiry dates or best-before (BBD) dates are selected first. Both FIFO and FEFO ensure that old stocks are used first and that stocks do not stagnate and expire during storage.
In Last-In First-Out or LIFO, the most recently received goods are selected first. This ensures the freshness of deliveries and is used in deliveries to preferred customers, etc.
Different types of merchandise may have different picking rules based on their type, whether dry, frozen or refrigerated, it may also depend on customer requirements.
Modern warehouses benefit from efficient racking and racking systems that provide easy access to stored merchandise while ensuring optimum use of warehouse storage space.
Efficient and well-trained staff helps to operate the modern warehouses most of which operate 24/7 and provides various value-added services to its clients.
How does merchandise distribution work?
Just-In-Time (JIT) method is one of the methods of ordering goods mostly followed by manufacturing and assembly plants.
JIT is followed to reduce or avoid warehousing and associated warehousing costs, helps the client to avoid holding large inventory and thus reduces warehousing costs.
In merchandise distribution, merchandise, once received at the destination warehouse after customs clearance and verification, is loaded into a conveyance on its journey to the end customer.
The key factor in JIT is that the quantity of incoming goods matches the exact requirements of the customer at that particular point in time, so that the goods do not require warehousing or warehousing. This is where the distribution of goods helps.
The two main scenarios in the distribution of goods
In the first scenario, the goods are unloaded from the incoming truck to the warehouse organization yard, checked, sorted, or graded as necessary and immediately loaded onto a truck for dispatch to the customer.
In the second, the goods received directly from the port after receipt and customs clearance are sent to the customer. The logistic agent, after confirming the quantity and condition of the goods upon receipt, transfers them directly to the customer from the port.
This usually happens when a customer is out of stock at his location and urgently needs the goods to fulfill his or his customers' orders.
In all these scenarios, it can be seen that cargo storage is not involved and handling is minimal.
Distribution of goods is also known as Dock to Dock. If planned and used properly they can be very productive, resulting in significant savings in time and storage costs.
Facilities required for the distribution of goods
Distribution of goods requires minimal facilities. It only requires personnel for unloading and loading, equipment and space to separate or glue the goods or check their quality as required, the space that is usually used for this purpose in most warehouses is the assembly yard.
In the second case of docking described above, even the cargo receiving or separating space is not required as the cargo is transported directly from the port to the customer's premises. Significantly reduces material handling.