What you need to know about first in first out racking system？

What is the first in first out racking system? What kind of racking system is it? And what are its advantages and disadvantages? 

If you are in the process of selecting the right racking system for your warehouse, or if you are considering the first in first out racking system, then let's read this article with these questions in mind and learn about the FIFO racking system through HEDA's perspective as a racking manufacturer!

What is the first in first out racking system?

First in first out racking system is a kind of racking system for the use of FIFO storage method for the general term, it does not specifically refer to which kind of racking system, just refers to all the use of the FIFO storage racking system.

So you may want to ask, First In First Out (FIFO) means what, FIFO is a kind of shelving system storage management, its core meaning is the first deposited goods will be the first to take out. This type of storage management is ideal for goods that have a high turnover rate, such as pharmaceuticals and food.

Types of first in first out racking system

As I just said, first in first out racking system is just a generalized term for some racking systems that use FIFO storage. So the question is, what are these FIFO racking systems? So next I will introduce you to some common first in first out racking systems.

Flow racks

Flow racks are considered to be the most common first in first out racking system, but there are some differences in practical use depending on the needs of the next. I will introduce you to several of our most common flow racks.

Gravity flow racks

Gravity flow racks mainly utilize the power of gravity to make the goods flow, and the bottom of the goods is usually a roller or chute and other devices to ensure that the goods can slide smoothly under the effect of gravity. The goods are usually deposited in a high place, then the goods will slide to a low place, and then taken out in a low place. The order in which the goods are taken out is the same as the order in which they were deposited.

Carton flow rack

Carton flow rack is similar to gravity flow rack, both of which use a combination of gravity drive and rollers. However, the biggest difference is that the carton flow rack cannot load heavy or large goods. As the name suggests, it is more suitable for small and medium-sized goods such as carton goods.

What is the advantage of the first in first out racking system?

Increased stock turnover

For goods that require high turnover, the first in first out racking system has the advantage of ensuring that stock turnover is increased and that stock is always kept in an appropriate inventory cycle.

Increased efficiency

The first in first out racking system is also very convenient to access, for some heavy or large goods, it can also support the use of forklifts and other tools to assist the work. 

The storage and retrieval areas are different and do not affect the simultaneous storage and retrieval of the same set of racks.

Inventory optimization management

The FIFO storage method allows the first deposited goods to be taken out at the earliest time, so that the goods inventory can be refreshed in time to avoid problems such as expiration and deterioration of goods due to long time storage.

Cost control

Thanks to excellent inventory management, the first in first out racking system reduces losses due to expiration and spoilage, and efficient access reduces operational time costs.

Improve data accuracy

In the first in first out racking system, you can employ barcode and RFID technology so that you can achieve more accurate goods location and statistics.

Flexibility and adaptability

FIFO racking systems can be customized to meet a company's needs, and most suppliers with factories can provide this service. As with our HEDA racking, our first in first out racking system can be customized in a wide range of ways including, but not limited to, size, construction, materials, load capacity and layout.

What is the disadvantage of the first in first out racking system?

Higher initial cost

A full-fledged first in first out racking system is a bit more expensive than a common racking system. Because of the automation equipment and accessories involved, it is destined to cost more.

Large space consumption

FIFO storage will require more storage channels and space, which is not friendly to warehouses with limited space.

Limited scope of application

The first in first out racking system is very friendly to goods that have a shelf life or stock period and have a uniform shape, as if it was created for them.

However, it is not suitable for long storage times or irregularly shaped goods and I would recommend other types of racking systems.

System dependencies

The operation of FIFO racking systems mostly depends on their core point, which is the automated or semi-automated equipment and systems. When these devices and systems fail, the entire first in first out racking system is affected.

Limited flexibility

If your business needs to change the layout of the racking system frequently, then I am afraid that the first in first out racking system will bring you a lot of unnecessary troubles.

The design and planning of a full-fledged FIFO system needs to take into account many factors, such as the type of goods, storage space and operation flow. So, when we change it again in the subsequent use, the change will involve a lot of things.

Why is the first in first out racking system used?

Assuming that you are in need of a racking system that can help you with tight inventory management and efficient turnover, I'm going to tell you why you should use the first in first out racking system.

The first in first out racking system's FIFO storage method offers many benefits, which I won't go into in detail here. But you need to know that in some industries (such as food or pharmaceuticals) there are strict regulations that require FIFO management of products. And it works very well for inventory management, maintaining product quality, and cost control.

However, this is all based on the fact that your industry or goods are suitable for the first in first out racking system. If your industry or goods need to be stored for a long time, or the shape of the goods is irregular, then I recommend that you use pallet racking or wide span shelving and other industrial shelving.

What is the first in first out racking system rule?

The basic rule of the FIFO racking system is to follow the first-in-first-out principle. The first-in-first-out principle is a strict requirement for goods in accordance with the time of storage management, to ensure that the earliest goods are the first out of storage to use or sell.

How does the first in first out racking system work?

The first in first out racking system works by ensuring that older stock in your warehouse is prioritized for removal or use before newer stock. This is ideal for goods that have a shelf life or stocking period. I'm going to give you a brief overview of how the first in first out racking system works on a basic level.

Design and layout

Choose the right first in first out racking system for you, basically it can be divided into flow rack and pallet flow rack. The difference between them is that they are designed for different types of goods, for example, flow rack is suitable for small and medium-sized items, while pallet flow rack is suitable for heavy-duty palletized goods. However, their common point is to ensure FIFO.

Loading

Once you have chosen the first in first out racking system that is right for you, the first step in getting it up and running is to load your goods. However, before loading, please make sure that your goods are labeled with a date or batch number so that you can track when they entered the racking system.

When it comes to the actual loading, regardless of the type of first in first out racking system, they are all loaded in a similar way. They are all loaded in a designated deposit area, which is usually above the take out area or at the back of the rack.

This way, when your first two items are loaded into the first in first out racking system from the designated deposit area, your items will automatically slide into our take out area one by one in the same order as they were deposited, waiting to be taken out.

However, you have to make sure that your goods are sorted according to the production date or stock period of your goods to avoid any mis-sorting.

Taking out

When we need to take out the goods, in the first in first out racking system of the front end or the designated take out directly carry good, because in accordance with the working principle of the FIFO, we take out the first of the goods must be the earliest deposited, so that it is convenient to take out the goods with a long inventory cycle, to avoid the situation of the inventory cycle is too long, the goods deterioration and expiration date.

But all of this is based on the assumption that you are reasonable goods according to the production date or inventory period sorted.

If you use an automated first in first out racking system, it can rely on its own sensors and conveyor belts to recognize the time of entry of goods and automatically sort and move the corresponding goods to the goods out.

Supervision and management

In the first in first out racking system, we can incorporate a lot of modern technology to make it even better. Examples include Warehouse Management Systems (WMS), barcode and RFID technology. They exist to track goods in and out of the warehouse, to quickly scan out goods during loading and unloading and to alert goods of long stock dates, among other functions.

Get the next step in the first in first out racking system

It may be tiring and troublesome to think and plan an ideal first in first out racking system by yourself, but we as a professional supplier may be able to help you. 

Over the past two decades, we have served more than 10,000 buyers worldwide, and our accumulated experience and know-how can surely help you get the best first in first out racking system.

So, what are you waiting for? Just take a minute to leave us your contact details to get started with it all!