How to Maintain FIFO (First In First Out) in the Warehouse of Garments Industry
The First in First method (FIFO) simply means what comes in first will be handled first, what comes in next waits until the first one is finished. The physical flow of goods. When the physical flow of goods is actually first-in, first out, the FIFO method closely approximates specific identification. Maintaining FIFO (First In First Out) in a garments warehouse is important to ensure that the oldest stock is used or issued first, reducing the risk of products becoming outdated or expired. It is a part of best practices in Garments manufacturing. Here are some tips on how to maintain FIFO in a garments warehouse. Responsible persons & departments: Departmental Head of warehouse and Packing as well as their employees are responsible to maintain FIFO.
Benefits of Following FIFO: Shipping the oldest goods first to prevent degradation (A decline to lower quality or condition) of the garments as well as avoid potential obsolescence (sth no longer used) of the inventories. Every material has a lifetime or expiry date, FIFO system chase to complete consumption as early as possible.
Maintaining FIFO in the Garments Warehouse is the issuance of raw materials to the production, some parameter is to be considered here. First in first out (FIFO) i.e. Material issue as per receipt or challan, means first received materials issued first. Maintain register for issue / Received. Bin card use with Style, Color, and Lot no/ Batch no. for proper segregation. First, produced goods should be issued first. As per available shelf i.e. less available shelf life material issued first. As mentioned above first material is consumed as per the available shelf and then after as per the receipt / Challan date. The first expired out material shall issue as per the material that expired first preferably issued first for production.
FIFO Implementation process in the Garments Industry Warehouse
a)Stack Pallets Appropriately: For warehouse operation, it is important to ensure that a newer pallet is not placed on top of an older pallet. If older pallets are stored underneath or behind newer pallets, it will require a great deal of material movement for pickers to access the oldest material first. Stacking pallets appropriately will help to simplify and expedite the fulfillment process
b)Clear Label Signage: In the garments industry, Clearly label the items so that users can easily identify the older items when there are multiple product choices in the same bin location. The products should be labeled with the date of receipt and arranged according to the date of receipt. Make sure the items on the shelf or rack with the earliest receipt date are situated at the front.
c) Implement a system: Create a system whereby the products are automatically rotated in accordance with the date of receipt. This can be accomplished by rearranging the shelf so that the newer items are in the back and the older ones are in front.
d) Train the staff: Inform employees about the value of the FIFO system and how to uphold it. Make sure they understand the procedure and adhere to it faithfully.
e) Regularly check for expired products: Regularly check the inventory to make sure that the goods are being used in the order they were received. This will enable improvements to be made and help uncover any systemic problems.
f) Monitor the inventory: Check the inventory frequently to make sure that the goods are used in the chronological order (serial) they were received. This will make it possible to find any systemic problems and enable improvements.
g) Better to make a Number System: A numbering system is easy for maintaining FIFO. If material comes first, we can give a number 1, for second put 2, for third put 3. We can use number 1 first.
By following these tips, you can maintain FIFO in your garments warehouse and ensure that your products are used and shipped to customers in the order (serial) they were received.
- You may love to read: Responsibilities of Warehouse Store Manager in the Garments Industry
- Best Practices in Apparel Industry
- Warehouse Management System in Apparel Industry
- Material Control Department in Apparel Industry